Age:
39
Spouse’s/Partner's age:
N/A
Annual gross income from employment or profession:
E70k per annum / €4,000 per month (including €400 from renting a spare room).
Annual gross income spouse:
N/A
Type of employment:
Private sector
Expenditure pattern:
Now a saver. For the past 6 years, I was using spare income to pay down debt.
Rough estimate of value of home
€160,000k
Mortgage Amt. Outstanding
€170,000
Mortgage provider:
Danske Bank
Type of mortgage:
Tracker
Interest rate
ECB rate + 0.7%
Other borrowings – car loans/personal loans etc.
None
Do you pay off your full credit card balance each month?
N/A - I don’t have a credit card
Savings and investments:
7k in Savings – I am planning to lodge this into a Nationwide Regular Savings account at an interest rate of 4%
(I have not done this yet, I am waiting for the paperwork to be finalised)
Do you have a pension scheme?
Thanks to my previous employer, I was a member of a Defined Benefit pension scheme for 13 years. I left that scheme last year when I took voluntary redundancy. In today’s money it would pay me an annual income of €5,500 per annum on retirement.
I am about to invest in a new pension scheme. It will be fully funded by me – there will be no employer contribution. However, I will be able to get tax relief on the contributions.
Do you own any investment or other property?
Yes – I have two, both overseas, see below.
Investment property 1
Value €120k Euro
Mortgage 0k Euro
Monthly Rent - €500 per month
Investment property 2
Value €100k Euro
Mortgage €130k Euro
Monthly Rent - €450 per month
Ages of children:
None – I won’t be having children.
Life insurance:
Yes.
Health insurance:
Yes.
What specific question do you have or what issues are of concern to you?
I am debt free for the first time in 6 years! In fact I have, 7k in the bank (leftover from my redundancy payment) and now want to start saving/investing for the first time.
I am fully aware of why and how I got into debt and through hard work, sacrifice, budgeting (and a very nice lump sum redundancy payment) I got myself out of it. If interested, you can find more information on my ‘debt story’ here: http://www.askaboutmoney.com/showthread.php?t=126974
While I know I have a lot of property exposure, I don’t plan on disposing any of it for the foreseeable future. Both properties are in good condition, are very well located and are easily tenanted. They are also managed by a locally based family friend who I trust completely. I am tax compliant in relation to this rental income.
My income prospects are pretty good – I work in the technology sector, live in Dublin and should find it easy to find a new job if needed going forward.
As I have literally just got back on my feet, I estimate that my monthly income of €4,000 will be allocated as follows:
Mortgage €700
Food €300 (covers; breakfast, lunch, evening meals at home. I shop at Aldi/Lidl)
Motoring €500 (Diesel/Motor Tax/Insurance/Tolls/Servicing. My daily roundtrip to work is 100KM. I have a fuel efficient car and public transport is not an option)
Socialising/Meals out €300 (I am in a long-term relationship, and don’t socialise excessively)
Luxuries €500 (clothes, annual holidays, haircuts, occasional weekends away)
Insurance €80 (Life Insurance, Home Insurance, Health Insurance
Miscellaneous €90
Gas and Electricity €100
Water Charges/Property Tax €75.
Overall that leaves me with up to €1,355 per month to save, invest in a pension etc. Broadly speaking my aims are to:
1. save a nest egg equal to 6 months net salary - in case of losing my job, falling ill etc.
2. save some money for unexpected expenses – I am thinking of having a cushion of approx. 3k in this fund.
3. change my car 5/6 years from now - so that I don’t have to borrow to do that.
4. Invest in a pension product. My company have sent me some information on the products open to me, but I have no clue on what type of pension to invest in - as I had had a Defined Benefit scheme up to now.
As I have focused on cutting spending and paying down debt for the past 6 years, I know very little about savings and investments.
Any advice on; what products to use for saving, where and how much to save this would be greatly appreciated. Generally speaking I know I am in a decent position and don't plan on taking many risks regarding investments going forward.
I would also appreciate any general advice that people want to give in relation to my planned approach, overall financial situation etc.
39
Spouse’s/Partner's age:
N/A
Annual gross income from employment or profession:
E70k per annum / €4,000 per month (including €400 from renting a spare room).
Annual gross income spouse:
N/A
Type of employment:
Private sector
Expenditure pattern:
Now a saver. For the past 6 years, I was using spare income to pay down debt.
Rough estimate of value of home
€160,000k
Mortgage Amt. Outstanding
€170,000
Mortgage provider:
Danske Bank
Type of mortgage:
Tracker
Interest rate
ECB rate + 0.7%
Other borrowings – car loans/personal loans etc.
None
Do you pay off your full credit card balance each month?
N/A - I don’t have a credit card
Savings and investments:
7k in Savings – I am planning to lodge this into a Nationwide Regular Savings account at an interest rate of 4%
(I have not done this yet, I am waiting for the paperwork to be finalised)
Do you have a pension scheme?
Thanks to my previous employer, I was a member of a Defined Benefit pension scheme for 13 years. I left that scheme last year when I took voluntary redundancy. In today’s money it would pay me an annual income of €5,500 per annum on retirement.
I am about to invest in a new pension scheme. It will be fully funded by me – there will be no employer contribution. However, I will be able to get tax relief on the contributions.
Do you own any investment or other property?
Yes – I have two, both overseas, see below.
Investment property 1
Value €120k Euro
Mortgage 0k Euro
Monthly Rent - €500 per month
Investment property 2
Value €100k Euro
Mortgage €130k Euro
Monthly Rent - €450 per month
Ages of children:
None – I won’t be having children.
Life insurance:
Yes.
Health insurance:
Yes.
What specific question do you have or what issues are of concern to you?
I am debt free for the first time in 6 years! In fact I have, 7k in the bank (leftover from my redundancy payment) and now want to start saving/investing for the first time.
I am fully aware of why and how I got into debt and through hard work, sacrifice, budgeting (and a very nice lump sum redundancy payment) I got myself out of it. If interested, you can find more information on my ‘debt story’ here: http://www.askaboutmoney.com/showthread.php?t=126974
While I know I have a lot of property exposure, I don’t plan on disposing any of it for the foreseeable future. Both properties are in good condition, are very well located and are easily tenanted. They are also managed by a locally based family friend who I trust completely. I am tax compliant in relation to this rental income.
My income prospects are pretty good – I work in the technology sector, live in Dublin and should find it easy to find a new job if needed going forward.
As I have literally just got back on my feet, I estimate that my monthly income of €4,000 will be allocated as follows:
Mortgage €700
Food €300 (covers; breakfast, lunch, evening meals at home. I shop at Aldi/Lidl)
Motoring €500 (Diesel/Motor Tax/Insurance/Tolls/Servicing. My daily roundtrip to work is 100KM. I have a fuel efficient car and public transport is not an option)
Socialising/Meals out €300 (I am in a long-term relationship, and don’t socialise excessively)
Luxuries €500 (clothes, annual holidays, haircuts, occasional weekends away)
Insurance €80 (Life Insurance, Home Insurance, Health Insurance
Miscellaneous €90
Gas and Electricity €100
Water Charges/Property Tax €75.
Overall that leaves me with up to €1,355 per month to save, invest in a pension etc. Broadly speaking my aims are to:
1. save a nest egg equal to 6 months net salary - in case of losing my job, falling ill etc.
2. save some money for unexpected expenses – I am thinking of having a cushion of approx. 3k in this fund.
3. change my car 5/6 years from now - so that I don’t have to borrow to do that.
4. Invest in a pension product. My company have sent me some information on the products open to me, but I have no clue on what type of pension to invest in - as I had had a Defined Benefit scheme up to now.
As I have focused on cutting spending and paying down debt for the past 6 years, I know very little about savings and investments.
Any advice on; what products to use for saving, where and how much to save this would be greatly appreciated. Generally speaking I know I am in a decent position and don't plan on taking many risks regarding investments going forward.
I would also appreciate any general advice that people want to give in relation to my planned approach, overall financial situation etc.