Mortgage in FIRE calcs
Hi all, new account so I don't dox myself. I believe I am in a good position for FIRE in the future:
41M married , one child
£200k income, wife further £60k
Main house £340k left on mortgage + BTL generating £10k taxed income per year with £220k left on mortgage
Cash £50k
ISA £120k + £13k wife. All in global tracker funds 80% shares
Pension £451k for me + wife £50k. All in global tracker funds 100% shares
Targeting £48k per year minimum in retirement but with a paid off house and target age 53. I aggressively saved into pension for last 8 years to avoid tax trap, espeically when income was 100-150k. Fire Calculator says I could retire at 47 with £1.4M with a WR of 3.5%
My questions are:
I think I am too heavy in pensions so would need to build out 4 years of ISA at around £192k so am I best of starting to do this aggressively now rather than taking the tax advantage of the pension?
The Fire Calculator doesn't take into account the mortgage, how do I model this in? The mortgage is around £20k per year. So with a mortgage I would be looking at £68k per year to take this into account. Should I redirect funds to pay mortage or aim for a higher income in retirement?
Any advice now to take into account BTL? I would been keen to sell to upgrade our house, but wife is adament to keep it. We did also just take out a 5 year fixed mortage on our main house.
I am largely in shares, am I close to needing to start de-risking? In my mind I am still in boring middle / accumulation phase.
Any other considerations?
Thanks in advance for reading!