JuanDB wrote:TUK020 wrote:JuanDB wrote:My rough maths indicates i’d need a 4.8% absolute return (can ignore inflation) to fully cover the mortgage payments without touching capital. A low risk portfolio like Golden Butterfly has returned 6%+ back tested over decades. De risk this by paying a couple of years of the mortgage from salary to reduce sequence of returns risk.
Reiterate - that is 4.8% absolute return
post tax
Yes, around £12k per annum in absolute value which we have headroom in CGT to cover. Mrs Juan also has some room in other tax allowances for dividends and income. I don’t anticipate paying any tax.
It sounds to me like you've already decided that you want to go ahead with this.
Nobody pointed out any potential 'financial engineering'-type pitfalls that you hadn't already considered, but you didn't get much, even any, 'social proof'-type backing.
I for one will be interested to hear how it goes.
torata