Hi All,
I would appreciate the forum's views on the following question:
Could I leave my job at 55 (in 5 years) and allow my family live primarily on our rental income while enjoying a nice style of life? Nothing extravagant, but able to go on nice holidays if we want to (as an example).
I don't mind the notion of spending income earned from assets but for some reason I don't like the notion of spending my capital for everyday expenses
Our current position is as follows:
Me: 50, employed private sector, salary is €92,500. Net €3,500 pm (after €2k net paid into AVC each month)
OH: 45, works part time primarily from home, salary is €12,000
2 Kids: ages 10 and 8
Assets are:
€275,000 in cash - €240k of which is in 10 year state savings, maturing in 2026. Net interest in 9 years will be €38,000. This interest is earmarked for first child's college expenses
€90,000 in direct shares
€26,000 in equity savings from children's allowance, plan is to continue to invest the €280 per month and this will build to a sufficient fund to send second child to college)
€870,000 in investment property assets (spread over 5 properties) which generates €50,000 total in gross rental income each year. Loans of total €190,000 against these properties. All will be paid off by 2023.
€360,000 PDH - loan of €190,000 against it (tracker ecb + 1.25%) - will be paid off in 10 years
Currently €330,000 in AVC fund (contributions of €2k per month) also guaranteed hybrid pension of approx €14k per annum if I stay for next 5 years from employer (from age 65).
OH has €170,000 AVC fund and a guaranteed retained benefit DB pension of €12k per annum at NRA (65)
Sufficient protection in place for both of us.
Annual household expenditure budget is currently €45k per annum (excluding loans)
Me, company car, OH 6 year old car which is paid for
No short term debt or loans
Planned expenditure is €20k for home improvements in the next 6 months
I appreciate we are in a fortunate position, however, have worked very hard to get to where we are and for my own 5 year plan I need to start thinking about my exit from work.
In 5 years, I would hope to find a job working 2-3 days a week at something that really interests me (money not overly important) but also allow more time to just enjoy life a little more. Hopefully paying the standard rate of tax on all income at that stage.
Appreciate your views....
I would appreciate the forum's views on the following question:
Could I leave my job at 55 (in 5 years) and allow my family live primarily on our rental income while enjoying a nice style of life? Nothing extravagant, but able to go on nice holidays if we want to (as an example).
I don't mind the notion of spending income earned from assets but for some reason I don't like the notion of spending my capital for everyday expenses
Our current position is as follows:
Me: 50, employed private sector, salary is €92,500. Net €3,500 pm (after €2k net paid into AVC each month)
OH: 45, works part time primarily from home, salary is €12,000
2 Kids: ages 10 and 8
Assets are:
€275,000 in cash - €240k of which is in 10 year state savings, maturing in 2026. Net interest in 9 years will be €38,000. This interest is earmarked for first child's college expenses
€90,000 in direct shares
€26,000 in equity savings from children's allowance, plan is to continue to invest the €280 per month and this will build to a sufficient fund to send second child to college)
€870,000 in investment property assets (spread over 5 properties) which generates €50,000 total in gross rental income each year. Loans of total €190,000 against these properties. All will be paid off by 2023.
€360,000 PDH - loan of €190,000 against it (tracker ecb + 1.25%) - will be paid off in 10 years
Currently €330,000 in AVC fund (contributions of €2k per month) also guaranteed hybrid pension of approx €14k per annum if I stay for next 5 years from employer (from age 65).
OH has €170,000 AVC fund and a guaranteed retained benefit DB pension of €12k per annum at NRA (65)
Sufficient protection in place for both of us.
Annual household expenditure budget is currently €45k per annum (excluding loans)
Me, company car, OH 6 year old car which is paid for
No short term debt or loans
Planned expenditure is €20k for home improvements in the next 6 months
I appreciate we are in a fortunate position, however, have worked very hard to get to where we are and for my own 5 year plan I need to start thinking about my exit from work.
In 5 years, I would hope to find a job working 2-3 days a week at something that really interests me (money not overly important) but also allow more time to just enjoy life a little more. Hopefully paying the standard rate of tax on all income at that stage.
Appreciate your views....