Age: 50
Spouse’s/Partner's age: 46
Annual gross income from employment or profession: €90k (private sector)
Annual gross income of spouse: €40k (public sector)
Monthly take-home pay: €6300
In general, we are saving about €700 per month
Rough estimate of value of home €300k
Amount outstanding on your mortgage:
€140k on first mortgage. Rate: ECB + 1.68%. 140 months remaining.
€50k on second mortgage (on same property). Rate ECB + 2.25%. Also 140 months remaining.
Other borrowings – car loans/personal loans etc
€10k on car loan.
€4k on credit union loan.
Do you pay off your full credit card balance each month? If not, what is the balance on your credit card?
Generally paid off in full.
Savings and investments:
1. Zurich unit linked monthly savings product - total value €20k - saving €500 monthly into this (included in the €700 monthly saving mentioned above)
2. 10 yr national solidarity bond - €19k (now in yr 3)
3. 3k in credit union
4. We've just sold an investment property and have €60k in cash (which is at the heart of our makeover request)
Do you have a pension scheme?
1. Partner has public sector pension
2. I've 19 yrs of DB scheme (frozen at 2009 salary level c. €70k plus increasing by annual CPI)
3. I've a further 8 yrs of DC scheme pension which is attracting 10% salary pa.
Do you own any investment or other property?
No
Ages of children:
three, under 10
Life insurance:
Income and mortgage protection
What specific question do you have or what issues are of concern to you?
We've debated what to do with the 60k including putting it into a pension, into prize bonds / state savings or moving house. We figure with the state savings and Zurich products we'll have c. €85k cash by the time the children leave secondary school (in ten yrs+ time) which should pay for college expenses.
Lump sum payments are due with both state and DB pension and with DB / DC pension plus state pension we believe our pension is sufficiently well provided for.
Our current position is to
1. pay off the car and credit union loans
2. carry out some house repairs and stay where we are
3. make a lump payment off the 2nd mortgage, leaving a balance of c.€15k.
With overpayments (which we haven't used to date but plan to), we could then clear the 2nd mortgage in c.24 months. At that stage, we would then role all payments into the principal mortgage and have that cleared in a further 50 months.
My question is this: is this the best use of the lump sum we've currently got available to us? It seems to follow the suggested guidelines of paying off more expensive debt first; there doesn't seem to be much value in any savings or investment products.
Thanks for any + all opinions!
Spouse’s/Partner's age: 46
Annual gross income from employment or profession: €90k (private sector)
Annual gross income of spouse: €40k (public sector)
Monthly take-home pay: €6300
In general, we are saving about €700 per month
Rough estimate of value of home €300k
Amount outstanding on your mortgage:
€140k on first mortgage. Rate: ECB + 1.68%. 140 months remaining.
€50k on second mortgage (on same property). Rate ECB + 2.25%. Also 140 months remaining.
Other borrowings – car loans/personal loans etc
€10k on car loan.
€4k on credit union loan.
Do you pay off your full credit card balance each month? If not, what is the balance on your credit card?
Generally paid off in full.
Savings and investments:
1. Zurich unit linked monthly savings product - total value €20k - saving €500 monthly into this (included in the €700 monthly saving mentioned above)
2. 10 yr national solidarity bond - €19k (now in yr 3)
3. 3k in credit union
4. We've just sold an investment property and have €60k in cash (which is at the heart of our makeover request)
Do you have a pension scheme?
1. Partner has public sector pension
2. I've 19 yrs of DB scheme (frozen at 2009 salary level c. €70k plus increasing by annual CPI)
3. I've a further 8 yrs of DC scheme pension which is attracting 10% salary pa.
Do you own any investment or other property?
No
Ages of children:
three, under 10
Life insurance:
Income and mortgage protection
What specific question do you have or what issues are of concern to you?
We've debated what to do with the 60k including putting it into a pension, into prize bonds / state savings or moving house. We figure with the state savings and Zurich products we'll have c. €85k cash by the time the children leave secondary school (in ten yrs+ time) which should pay for college expenses.
Lump sum payments are due with both state and DB pension and with DB / DC pension plus state pension we believe our pension is sufficiently well provided for.
Our current position is to
1. pay off the car and credit union loans
2. carry out some house repairs and stay where we are
3. make a lump payment off the 2nd mortgage, leaving a balance of c.€15k.
With overpayments (which we haven't used to date but plan to), we could then clear the 2nd mortgage in c.24 months. At that stage, we would then role all payments into the principal mortgage and have that cleared in a further 50 months.
My question is this: is this the best use of the lump sum we've currently got available to us? It seems to follow the suggested guidelines of paying off more expensive debt first; there doesn't seem to be much value in any savings or investment products.
Thanks for any + all opinions!