David is age 45 and earns around £100,000 a year. His wife works part-time in the public sector and does some freelance work. They have two pre-school-age children. Their home is worth about £950,000 and has a mortgage of £350,000 on it. They also own a buy-to-let property worth about £175,000 with a mortgage of £108,000. They let it for £750 a month and in the last tax year it made them an income after expenses of £3,000.
Sipp and Isa invested in funds and shares, workplace pension, shares in employer, residential property, cash.
Grow investments to provide £40,000 a year in retirement, pay off mortgage, retire at 60, help children buy homes, total return of 7 per cent a year or inflation plus 5 per cent.
“My primary objective is to grow my investments to a large enough value to provide a comfortable retirement,” says David. “I think I will need an income of £40,000 a year on top of our state pensions to achieve this. I would like to be in a position to retire at 60, if possible. We have 18 years remaining on our mortgage and I would like to pay this off before I retire.