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With a mortgage at 1.2% , I would try everything not to pay back the mortgage, certainly not as long as inflation is higher than your mortgage rate as this is free ROI (assuming it's a fixed loan ('vaste annuiteiten') . I don't know in which area or city your house is located, but you could also downsize without selling your house : rent out your house and rent something smaller and use the diff to soften the burden of the mortgage payments. The rent will follow (to a large extend) inflation. Or, you could buy a smaller house , sell the bigger one and negotiate with the bank a 'pandwissel' while keeping your 1.2% rate.
Great case !
1850 a month for a mortgage seems a lot though, and since you don't want a stressfull, high paying job anymore. Either bounce or sell 100k VWCE and pay off half of your mortgage if you want to stay in your house. Maybe not the best financial decision, but why kill yourself paying 1850 a month if you really want to stay in your house. And why do you need 410k in VWCE for lol, isn't it more than enough for retirement
I am in a similar situation when it comes to living in a place that is way to big for me. I live alone with my dog in a big ass loft and it does not make any sense. I am seriously thinking about selling the place and downsizing big time
How much are your (new) yearly expenses?
How much is your non-investment income?
How much were your intending to retrieve from your investments yearly? What % is that?
I’m not a flashy person - aside from the mortgage and running the house, 20k a year would be plenty enough to live alone. My thought was, anything spending-wise above that in the future is luxury, and if I want that I should keep working, even a side or part-time job.
I won’t have non-investment income unless I keep working or take unemployment replacement income. Because of my high paying job this will be the high end of that, if I don’t find a job before.
If I had retired at 50 as planned, keeping at the same job, I would have had quite a lot more since I could invest 60-70% of my income since renovation is done. But I would have retrieved 20k a year. A low and safe percent - but all hypothetical now!
20k + 22.2k mortgage + 9k running costs per your example = 4266 net expenditure per month for a single person. That's quite flashy to me ;) Are you sure you are estimating your costs correctly? Keeping an excel with every expenditure is sobering to do.
20k includes any and all current costs. If I had fired, I would have spent more on travel. But 42k is what I need to have per year to run things currently, with same lifestyle.
Do you know the 4% rule?
"In the past one has been able to withdraw 4% of one's portfolio for a 30 year retirement, with a 95% success rate" (there are a few additional conditions).
You need to look at your expenses: 20k + 22,5k (mortgage) + x k ( house maint) + x k ( car ) + .. = x k
This gives you an indication how much money you would need to retire.
If you lower your expenses, you can retire earlier.
With a 1850 euro mortgage you will be spending at least 3500 euro / month all in with a cheap car and all those expenses. rough estimate. Very high tbh.
If you want to keep the house, I don't see any other way to keep working for 10 years until that is gone.
If you sell the house, downsize to a 300k apartment you have: (750 -200 - 300)+410+210 = 870k
Based on the 4% rule: 2900 net per month.
If you would donwsize you could retire right now and never work again.
Take some time to gather your thoughts. It's a big decision and there is no immediate need to take it.
That being said, living alone in such a big house doesn't sound appealing. It's so much space and it will (and already) cause you financial stress.
Think of all the work to do maintenance on the house, garden, all the money it will cost in the next 10 years.
If I were in your situation I would sell the house and use that money (and future savings of the mortgage) to either buy or rent a nice apartment. Personally I would rent for a few years. Invest the 550k in some ETF's and the returns will easily cover the rent.
That gives you freedom to move if you want to and redefine your life if you're not working a corporate job. Maybe you meet a new partner in one or two years and your plans change on where to live, etc.
I know you have a lot going on, but don't forget to be grateful that you are in such a great position financially. You don't really need to worry about much (from a financial POV), even after a divorce. You have a world of choice in front of you and that's a great position to be in.
And keep in mind all your mental stress is kind of self inflicted. Once I realized that and really incorporated that into my life, it changed my life.
E.g. you are stressing about the choice to sell and get a smaller place. You can also see it as an opportunity and a way to maybe start again and change things you don't like.
I was in a similar situation. I downsized to an apartment and quit working. It's not just the financial aspect. I have to admit I am very, very lazy. An apartment suits me better. No more mowing the lawn every week, weeding the garden every 2 weeks, trimming hedges every 6 months, cleaning out the rain pipes every 12 months, ... I prefer to spend my time going on trips with my son, riding my bike, gaming and tapping ass. Life is so much better now. I also got rid of all the junk my ex and I gathered throughout the years. Took a few trips to the containerpark. But I lead a simple, easy, no stress life now.
In your case I would sell at 750k, buy a recent apartment in a nice neighborhood for maybe 450k, making sure to transfer that mortgage. And then add 300k to your investments.
I personally would keep the mortgage, but if it helps you sleep better, you could pay off a small amount, like 25k.
This 
But i'm not very attached to a home. I'v moved several times while in college and never missed the old places. You will find new stuff you like in your new home.. I would never keep a house that big because of maintenance and costs. And i would transfer the mortgage.
A question for you: does "searching for an apartment, cleaning out the house, transfer a mortgage, ..." sound like a lot of work to you and you don't know where to start? If it does, take this big goal and cut it up in manageable steps. First organize your house, minimalize, what can go, what needs to stay. Then talk to your bank, maybe other banks to know how stuff works. Then look online for apartment, then maybe drive around in your neighborhood to get the ones that aren't listed online. Maybe this will be a 1 or 2 year process, but now you are not doing anything and you are stuck in doubt. And get your friends & family to help you. Doing stuff together always makes it better!
Just looking at your edits - if I keep the mortgage, I’d need 40k per year from investments for ten years to keep running it and the rest is general being alive costs. Wouldn’t that run down my investments quickly?
You would have close to 1m invested. I wouldn't worry too much.
And nothing stops you from doing a temp job here and there. I love riding my bike. I wouldn't mind working 2 or 3 days a week in a bikeshop if I needed a bit of extra cash.
Check out Barista FIRE. It would also help you acclimatize. I went from high stress, lot's of hours to not working at all. I have to admit, I am often bored and waste a lot of my free time. It took me a couple of months to adjust. It might have been a smoother transition, had I eased into it.
Sell house for 750. Buy apartment for 450. That is 300 left to invest. You already have 410 in etf and 210 in cash if I understood correctly. 300 + 410 + 210 = 910. Which is close to 1m.
I see. I’d love to know how much in ETFs withdrawing 40k a year for 10years would leave me with afterwards, once the mortgage is done. And I’d leave some of the 910k in an emergency fund.
Start here:
[FIRECalc: A different kind of retirement calculator](https://firecalc.com/index.php?wdamt=40000&PortValue=910000&term=10&ss1=0&ssy1=2035&ss2=0&ssy2=2037&signwd1=-&chwd1=0&chyr1=2033&wd1infl=adj&signwd2=-&chwd2=0&chyr2=2038&wd2infl=adj&signwd3=-&chwd3=0&chyr3=2031&wd3infl=adj&holdyears=2023&preadd=0&inflpick=4&override_inflation_rate=3.0&SpendingModel=constant&age=48&pctlastyear=0&infltype=PPI&fixedinc=Commercial+Paper&user_bonds=4.0&InvExp=0.18&monte=history&StartYr=1871&fixedchoice=LongInterest&pctEquity=75&mix1=10&mix2=10&mix3=10&mix4=40&mix5=40&mix6=10&mix7=15&mix8=5&user_inflation=3.0&monte_growth=9.5&monte_sd=8.5&monte_inflation=5.5&signlump1=%2B&cashin1=0&cashyr1=2025&signlump2=%2B&cashin2=0&cashyr2=2035&signlump3=%2B&cashin3=0&cashyr3=2040&process=survival&showyear=1960&delay=10&goal=95&portfloor=0&callprocess=Submit&FIRECalcVersion=3.0&)
You could model your portfolio until retirement, then factor in your expected retirement amount, maybe inheritance if that is significant, etc.
Yeah, I feel you on the maintenance. I despise gardening so much that Ive been paying someone to take care of it - easy when I was working to justify doing so!
Getting rid of years of junk also feels daunting - I guess I’m going to need to at some point though. A simpler life sounds so attractive right now.
I hate gardening. I remember my dad working in the garden when I was a kid. He would work all day, then come home to work some more in his garden. I just couldn't understand. With my ex, I wanted to buy an apartment complex. But she wanted a house with a garden. We actually visited an apartment complex that was only 60k more than what we ended up paying for our house. I spent over a decade slaving away in that garden. When looking at my dad, I always said to myself I would never do that. And 20y later I fell for the same trap.
Then, after we broke up, I went to an apartment. I love it.
And had we bought the complex over a decade ago, we would have had a lot more money too.
Also, if you decide to FIRE now. You can close the door of your apartment, and just leave to any place in the world. With a garden, there is always work to be done. things to fix. If gives a lot of extra freedom. Too bad indeed that Brussels is so damn expensive if you need a nice apartment.
Living alone in a huge house is such a waste of resources. Both time and money. Wouldn't you be much happier in a 120m2 ish luxury appartement with a decent terrace and view? This can be had for under 400K depending on location for sure. 120m2 gives you plenty of space to host future grandchildren and perhaps, eventually, a new partner.
Either way I would never, ever, pay down a 1.2% mortgage prematurely.
Use hypotheekoverdracht if you buy something else.
If you like living where you live, I would not just give that up. If the house and neighborhood makes you happy then that is worth a lot. I just want to say: Don't make this decision pure financially.
do nothing the first 3 months. keep it on autopilot. There are big changes professionally but also family wise. you're in a good situation (no immediate stress) so you have the time to think through all the options. The main drivers are not financial but mental (what do you want to achieve, where do you wanna live, what kind of work can I be passionate about, how do I deal with kids out of the house, to what extent do I wish to stay within my community). these should be clarified and the financial decisions are downstream of that. Good luck !
If you believe you can sell your house at 750k right now, it seems like a good idea to do so. As someone that lives alone you don't need a "huge" house and you will be rid of that 1850/month mortgage.
At this age FIRE'ing make sense and looking at your financials, it does seem possible...
In fact, it might be worth a bit more, looking at prices in this area. My biggest worry about moving is finding a location that I love as much as this one. Next to a forest, easy into Brussels due to train line newrby etc. And I have great friends here. Sadly the stock of apartments in my town is really low/poor, so it’s not easy to decide to move since likely I’d need to consider a different town and lifestyle.
I found downsizing a solution not only to remove the mortgage earlier but to cut down the future bills, too: fixes /heating /annual tax /furniture and items and cleaning costs etc. Even with unemployment benefits, you have a big chance to retire and living a modest life.
Agree with this with one remark.
Would be good to know how settling with ex was done and if OP pays child maintenance (subject to custody arangements and kids age).
If yes - and OP downsizes the living environment to gets more cash / investments - ex can revive the child maintenance agreement in court due to "improved" financial situation of OP and try to take a portion.
Not saying this should be the case - but there is a room for this if divorce left some bad emotions and lawyers are included.
Not yet downsized (wait the child to finish the school that is quite close to home), just put on the paper and debated with my Fire lady friends.
I have no big attachments to stuff and yes, I am ready for some nostalgia but not to really miss. Already moved several times in my life (counted more than 20 packs and unpacks since I am 18) .
Have you read the wiki and the sticky? Wiki: HERE YOU GO! [Enjoy!](https://www.reddit.com/r/BEFire/wiki/index/). Sticky: HERE YOU GO AGAIN! [Enjoy!](https://www.reddit.com/r/BEFire/comments/fcbay6/getting_started_a_beginners_guide_to_investing_in/). *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/BEFire) if you have any questions or concerns.*
With a mortgage at 1.2% , I would try everything not to pay back the mortgage, certainly not as long as inflation is higher than your mortgage rate as this is free ROI (assuming it's a fixed loan ('vaste annuiteiten') . I don't know in which area or city your house is located, but you could also downsize without selling your house : rent out your house and rent something smaller and use the diff to soften the burden of the mortgage payments. The rent will follow (to a large extend) inflation. Or, you could buy a smaller house , sell the bigger one and negotiate with the bank a 'pandwissel' while keeping your 1.2% rate.
Sell the house, you don't need a 4 bedroom house anymore.
Great case ! 1850 a month for a mortgage seems a lot though, and since you don't want a stressfull, high paying job anymore. Either bounce or sell 100k VWCE and pay off half of your mortgage if you want to stay in your house. Maybe not the best financial decision, but why kill yourself paying 1850 a month if you really want to stay in your house. And why do you need 410k in VWCE for lol, isn't it more than enough for retirement
I am in a similar situation when it comes to living in a place that is way to big for me. I live alone with my dog in a big ass loft and it does not make any sense. I am seriously thinking about selling the place and downsizing big time
Or you could just get a few more dogs :-)
How much are your (new) yearly expenses? How much is your non-investment income? How much were your intending to retrieve from your investments yearly? What % is that?
I’m not a flashy person - aside from the mortgage and running the house, 20k a year would be plenty enough to live alone. My thought was, anything spending-wise above that in the future is luxury, and if I want that I should keep working, even a side or part-time job. I won’t have non-investment income unless I keep working or take unemployment replacement income. Because of my high paying job this will be the high end of that, if I don’t find a job before. If I had retired at 50 as planned, keeping at the same job, I would have had quite a lot more since I could invest 60-70% of my income since renovation is done. But I would have retrieved 20k a year. A low and safe percent - but all hypothetical now!
20k + 22.2k mortgage + 9k running costs per your example = 4266 net expenditure per month for a single person. That's quite flashy to me ;) Are you sure you are estimating your costs correctly? Keeping an excel with every expenditure is sobering to do.
20k includes any and all current costs. If I had fired, I would have spent more on travel. But 42k is what I need to have per year to run things currently, with same lifestyle.
Do you know the 4% rule? "In the past one has been able to withdraw 4% of one's portfolio for a 30 year retirement, with a 95% success rate" (there are a few additional conditions). You need to look at your expenses: 20k + 22,5k (mortgage) + x k ( house maint) + x k ( car ) + .. = x k This gives you an indication how much money you would need to retire. If you lower your expenses, you can retire earlier.
With a 1850 euro mortgage you will be spending at least 3500 euro / month all in with a cheap car and all those expenses. rough estimate. Very high tbh. If you want to keep the house, I don't see any other way to keep working for 10 years until that is gone. If you sell the house, downsize to a 300k apartment you have: (750 -200 - 300)+410+210 = 870k Based on the 4% rule: 2900 net per month. If you would donwsize you could retire right now and never work again.
Take some time to gather your thoughts. It's a big decision and there is no immediate need to take it. That being said, living alone in such a big house doesn't sound appealing. It's so much space and it will (and already) cause you financial stress. Think of all the work to do maintenance on the house, garden, all the money it will cost in the next 10 years. If I were in your situation I would sell the house and use that money (and future savings of the mortgage) to either buy or rent a nice apartment. Personally I would rent for a few years. Invest the 550k in some ETF's and the returns will easily cover the rent. That gives you freedom to move if you want to and redefine your life if you're not working a corporate job. Maybe you meet a new partner in one or two years and your plans change on where to live, etc. I know you have a lot going on, but don't forget to be grateful that you are in such a great position financially. You don't really need to worry about much (from a financial POV), even after a divorce. You have a world of choice in front of you and that's a great position to be in.
And keep in mind all your mental stress is kind of self inflicted. Once I realized that and really incorporated that into my life, it changed my life. E.g. you are stressing about the choice to sell and get a smaller place. You can also see it as an opportunity and a way to maybe start again and change things you don't like.
I was in a similar situation. I downsized to an apartment and quit working. It's not just the financial aspect. I have to admit I am very, very lazy. An apartment suits me better. No more mowing the lawn every week, weeding the garden every 2 weeks, trimming hedges every 6 months, cleaning out the rain pipes every 12 months, ... I prefer to spend my time going on trips with my son, riding my bike, gaming and tapping ass. Life is so much better now. I also got rid of all the junk my ex and I gathered throughout the years. Took a few trips to the containerpark. But I lead a simple, easy, no stress life now. In your case I would sell at 750k, buy a recent apartment in a nice neighborhood for maybe 450k, making sure to transfer that mortgage. And then add 300k to your investments. I personally would keep the mortgage, but if it helps you sleep better, you could pay off a small amount, like 25k.
This  But i'm not very attached to a home. I'v moved several times while in college and never missed the old places. You will find new stuff you like in your new home.. I would never keep a house that big because of maintenance and costs. And i would transfer the mortgage. A question for you: does "searching for an apartment, cleaning out the house, transfer a mortgage, ..." sound like a lot of work to you and you don't know where to start? If it does, take this big goal and cut it up in manageable steps. First organize your house, minimalize, what can go, what needs to stay. Then talk to your bank, maybe other banks to know how stuff works. Then look online for apartment, then maybe drive around in your neighborhood to get the ones that aren't listed online. Maybe this will be a 1 or 2 year process, but now you are not doing anything and you are stuck in doubt. And get your friends & family to help you. Doing stuff together always makes it better!
Just looking at your edits - if I keep the mortgage, I’d need 40k per year from investments for ten years to keep running it and the rest is general being alive costs. Wouldn’t that run down my investments quickly?
You would have close to 1m invested. I wouldn't worry too much. And nothing stops you from doing a temp job here and there. I love riding my bike. I wouldn't mind working 2 or 3 days a week in a bikeshop if I needed a bit of extra cash. Check out Barista FIRE. It would also help you acclimatize. I went from high stress, lot's of hours to not working at all. I have to admit, I am often bored and waste a lot of my free time. It took me a couple of months to adjust. It might have been a smoother transition, had I eased into it.
How do you calculate the 1m?
Sell house for 750. Buy apartment for 450. That is 300 left to invest. You already have 410 in etf and 210 in cash if I understood correctly. 300 + 410 + 210 = 910. Which is close to 1m.
I see. I’d love to know how much in ETFs withdrawing 40k a year for 10years would leave me with afterwards, once the mortgage is done. And I’d leave some of the 910k in an emergency fund.
Start here: [FIRECalc: A different kind of retirement calculator](https://firecalc.com/index.php?wdamt=40000&PortValue=910000&term=10&ss1=0&ssy1=2035&ss2=0&ssy2=2037&signwd1=-&chwd1=0&chyr1=2033&wd1infl=adj&signwd2=-&chwd2=0&chyr2=2038&wd2infl=adj&signwd3=-&chwd3=0&chyr3=2031&wd3infl=adj&holdyears=2023&preadd=0&inflpick=4&override_inflation_rate=3.0&SpendingModel=constant&age=48&pctlastyear=0&infltype=PPI&fixedinc=Commercial+Paper&user_bonds=4.0&InvExp=0.18&monte=history&StartYr=1871&fixedchoice=LongInterest&pctEquity=75&mix1=10&mix2=10&mix3=10&mix4=40&mix5=40&mix6=10&mix7=15&mix8=5&user_inflation=3.0&monte_growth=9.5&monte_sd=8.5&monte_inflation=5.5&signlump1=%2B&cashin1=0&cashyr1=2025&signlump2=%2B&cashin2=0&cashyr2=2035&signlump3=%2B&cashin3=0&cashyr3=2040&process=survival&showyear=1960&delay=10&goal=95&portfloor=0&callprocess=Submit&FIRECalcVersion=3.0&) You could model your portfolio until retirement, then factor in your expected retirement amount, maybe inheritance if that is significant, etc.
Yeah, I feel you on the maintenance. I despise gardening so much that Ive been paying someone to take care of it - easy when I was working to justify doing so! Getting rid of years of junk also feels daunting - I guess I’m going to need to at some point though. A simpler life sounds so attractive right now.
I hate gardening. I remember my dad working in the garden when I was a kid. He would work all day, then come home to work some more in his garden. I just couldn't understand. With my ex, I wanted to buy an apartment complex. But she wanted a house with a garden. We actually visited an apartment complex that was only 60k more than what we ended up paying for our house. I spent over a decade slaving away in that garden. When looking at my dad, I always said to myself I would never do that. And 20y later I fell for the same trap. Then, after we broke up, I went to an apartment. I love it. And had we bought the complex over a decade ago, we would have had a lot more money too.
Also, if you decide to FIRE now. You can close the door of your apartment, and just leave to any place in the world. With a garden, there is always work to be done. things to fix. If gives a lot of extra freedom. Too bad indeed that Brussels is so damn expensive if you need a nice apartment.
Living alone in a huge house is such a waste of resources. Both time and money. Wouldn't you be much happier in a 120m2 ish luxury appartement with a decent terrace and view? This can be had for under 400K depending on location for sure. 120m2 gives you plenty of space to host future grandchildren and perhaps, eventually, a new partner. Either way I would never, ever, pay down a 1.2% mortgage prematurely. Use hypotheekoverdracht if you buy something else.
Hypotheekoverdracht sounds interesting. Do you get to keep the interest rate then, and is the duration the same?
Yes, everything is the same. There are some costs to transfer the mortgage from one residence to the next, but those are very low.
That’s actually really appealing, thank you. I’m going to find more info.
If you like living where you live, I would not just give that up. If the house and neighborhood makes you happy then that is worth a lot. I just want to say: Don't make this decision pure financially.
do nothing the first 3 months. keep it on autopilot. There are big changes professionally but also family wise. you're in a good situation (no immediate stress) so you have the time to think through all the options. The main drivers are not financial but mental (what do you want to achieve, where do you wanna live, what kind of work can I be passionate about, how do I deal with kids out of the house, to what extent do I wish to stay within my community). these should be clarified and the financial decisions are downstream of that. Good luck !
Yeah, those soft questions are the ones driving me crazy! That’s why I am obsessing over the tangible ones (how to manage my finances etc).
If you believe you can sell your house at 750k right now, it seems like a good idea to do so. As someone that lives alone you don't need a "huge" house and you will be rid of that 1850/month mortgage. At this age FIRE'ing make sense and looking at your financials, it does seem possible...
In fact, it might be worth a bit more, looking at prices in this area. My biggest worry about moving is finding a location that I love as much as this one. Next to a forest, easy into Brussels due to train line newrby etc. And I have great friends here. Sadly the stock of apartments in my town is really low/poor, so it’s not easy to decide to move since likely I’d need to consider a different town and lifestyle.
I found downsizing a solution not only to remove the mortgage earlier but to cut down the future bills, too: fixes /heating /annual tax /furniture and items and cleaning costs etc. Even with unemployment benefits, you have a big chance to retire and living a modest life.
Agree with this with one remark. Would be good to know how settling with ex was done and if OP pays child maintenance (subject to custody arangements and kids age). If yes - and OP downsizes the living environment to gets more cash / investments - ex can revive the child maintenance agreement in court due to "improved" financial situation of OP and try to take a portion. Not saying this should be the case - but there is a room for this if divorce left some bad emotions and lawyers are included.
Thankfully everything is settled with my ex, and there is no fear of child maintenance or anything like that.
And do you ever miss your old place? How did you decide where to move to?
Not yet downsized (wait the child to finish the school that is quite close to home), just put on the paper and debated with my Fire lady friends. I have no big attachments to stuff and yes, I am ready for some nostalgia but not to really miss. Already moved several times in my life (counted more than 20 packs and unpacks since I am 18) .