I think this will be long, apologies.
DH has been with the same company for almost 20 years. He's worked his way up to an excellent salary plus bonuses and stock options. He's now becoming bored and disillusioned with the job. The problem is that he is generally an insecure person and he's so comfortable with his role and status in the company that he won't get a different job. Instead he's trying to build up a property portfolio that will replace his income. So far he's purchased two studio flats, turned them into one beds and makes a monthly rental income though we absorbed the mortgages on the flats into our house mortgage, so still have that debt to pay off. In order to replace his salary he would need 8-9 similar flats, and that's not counting his bonuses. He would like to do this within 2-5 years. I don't see how that can happen without us having huge debt.
I'm wondering if this idea of property income is a pipe dream that DH tells himself to make staying in his current job more bearable. He certainly enjoys the money that he makes and I can't imagine him being happy with less. I wish that he had the confidence to change jobs while he's building up the property portfolio but he says he can't think of anything he could do for the same income and that it would take him a couple of years to establish himself in a new role and he'd rather work on the property investment. With his current plans the property income would be about half of his current income anyway, so I don't really understand his reasoning. Why shouldn't he find a job that makes him happy now with perhaps reduced income rather than staying in an unhappy role and working on something that may or may not happen.
We do have other investments in stocks, his company's stock options and a pension.
Yesterday DH had an offer accepted on another studio flat that he thinks he can turn into a one bed. I asked if it was a good time to buy since the market is so high but he says that it is. We'll have to take out another mortgage on the new flat, put a big chunk of our savings into it but DH says we should be able to pay off that mortgage at the end of the year with his bonus and by cashing in some stock. I'm concerned that he's reacting to a recent frustration at work and perhaps not making the right decision but I don't have a good grasp of investments. If it was me in charge of it all my approach would be to find a well paid salaried job that I enjoy, pay off any debts including the mortgage, pay up the pension and keep all of our savings in a big ball in the bank and just skim off the interest.
DH thinks of himself as a money person and he wants to make our money work for us. He also says he wants a more eclectic income rather than a salaried role. To me that just feels less stable. I'm very uncomfortable with the current situation and wonder if his ego is getting in the way. I don't want for DH to be in a job that makes him unhappy but I'm not sure that he'd be happy working on his own either. I think he needs the structure of working for a company and the camaraderie of an office. He seems to thrive by hitting set targets and getting good reviews. He's not good at gauging his own success and I don't think he would enjoy not having an 'audience'. As I said, he can be extremely insecure and I think he needs the structure of working for a company to feel he's achieving. We've talked about all of this but his response is generally, 'Yes, I agree but...'
Am I being silly? It is very scary to place all my trust in DH's decisions as I think there's a lot of underlying psychology tied up in his choices. I'm a SAHM, worked in the arts before children and don't have a grasp of investments, don't follow the markets, etc. I just don't know what to think but my gut is telling me something isn't right. I am willing to accept that I'm wrong. In fact, I would love to know that I'm wrong so I can stop worrying about but I don't want to just stick my head in the sand. Can the wisdom of MN reassure me?
Please or to access all these features
Please
or
to access all these features
Discuss investments with other users on our Investment forum. For more advice read our tips for saving for your child's future.
Investments
Can someone help me understand DH's decisions?
9 replies
financenumpty · 27/04/2014 08:49
OP posts:
Please create an account
To comment on this thread you need to create a Mumsnet account.