51yr old, 6 months of mortgage left.

W

wavejumper

Registered User
Messages
118
Personal details

Age: 51

single, no children.


Income and expenditure

Annual gross income from employment or profession: 45k

Monthly take-home pay 2400 (600 already going to PRSA monthly)

Type of employment: e.g. engineer, private sector

Saving about 200 a month

Monthly mortgage repayment 877, due to end March 2024.

Summary of Assets and Liabilities

Family home worth €380k
Cash of 198k
Credit Union: 5k
PSRA fund: €5k, employer not contributing.


Other borrowings – car loans/personal loans etc
None

Other savings and investments:
20k pension fund from previous employer.

What specific question do you have or what issues are of concern to you?


I recently inherited the 200k which improved my situation considerably as I can now max out the pension contribution which I was only able to start 2 years ago due to personal circumstances.

With the mortgage on my home paid in a few months I am undecided on what to do with the inheritance. After discussing with an advisor, I am looking into leaving 6 month’s salary worth of rainy fund in the current account, invest a portion (about 80k) of the rest into an indexed fund with Standard Life and put the remainder (100k) in a long term saving account (either 10 year with the post office solidarity fund or the AIB savings account).

In this scenario It didn’t look like I was going to get past age 75 with any money left other than the state pension. Is this too pessimistic? Is there anything else I can do to improve my situation?
 
wavejumper said:
put the remainder (100k) in a long term saving account (either 10 year with the post office solidarity fund or the AIB savings account).
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What is the point of this? You already have a rainy day fund. If you want the money to grow for your retirement then this doesn't seem like the best option for long term returns.
 
PGF2016 said:
What is the point of this? You already have a rainy day fund. If you want the money to grow for your retirement then this doesn't seem like the best option for long term returns.
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fair enough, would i be better off investing this in the standard life fund along woith the rest so?
 
If you invest the balance in a stockmarket fund, you do not need a rainy day fund.

If it starts raining, you can part cash your fund.

Brendan
 
Brendan Burgess said:
Clear the mortgage immediately.

No need to pay interest for the short remaining term.

Brendan
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it's an ulster tracker with AIB now, rates locked until February to atone for their rates mix up, would there be any problem exiting now, as in early fees for anything like that?
 
Brendan Burgess said:
Urgent

You can max your pension contribution for 2022 i.e. last year, if you do it before the end of October (?)
So get this done immediately.

Then max it for this year as well.

In January, max it for 2024

That's about 45k in pension and €5k of your mortgage.

Brendan
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thank you, I don't fully understand this, can i retroactively max out my 2022 and 2023 contributions now paying the difference in cash?
 
Brendan Burgess said:
Urgent

You can max your pension contribution for 2022 i.e. last year, if you do it before the end of October (?)
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To do this the pension contribution and tax reclaim need to be done by October 31st..
wavejumper said:
thank you, I don't fully understand this, can i retroactively max out my 2022 and 2023 contributions now paying the difference in cash?
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See above for 2022. You're cutting it very tight for this though.
For 2023 you can do it up to October 31st 2024.
 
wavejumper said:
thank you, I don't fully understand this, can i retroactively max out my 2022 and 2023 contributions now paying the difference in cash?
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ClubMan said:
To do this the pension contribution and tax reclaim need to be done by October 31st..

See above for 2022. You're cutting it very tight for this though.
For 2023 you can do it up to October 31st 2024.
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thank you, I've just shot an email to the broker to see if I can do it. The funds are due in my bank in 2 weeks so if it needs to be paid before then I'm out of luck.
 
wavejumper said:
fair enough, would i be better off investing this in the standard life fund along woith the rest so?
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If growth is what you want the something that (potentially) offers more returns than a deposit account is what you should use. I would guess the standard life fund would be a good starting point.
 
You'd be good for a loan to make the 2022 pension payment in time.

This is how the tax saving works for employees.

You'll probably need help with it at this stage but just ask about the costs of that help. Can you think of any reason why the advisor didn't address pension at your meeting?

Gerard
 
Brendan Burgess said:
GSheehy said:
You'd be good for a loan to make the 2022 pension payment in time.

This is how the tax saving works for employees.

You'll probably need help with it at this stage but just ask about the costs of that help. Can you think of any reason why the advisor didn't address pension at your meeting?

Gerard
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Hi, thanks for the info. My PRSA doesn't allow for lump sums, would that be an obstacle to try and backdate the maxing out of the contributions?

I have contacted IVESCO to get this started, would I be better off just to call revenue instead?

I am not sure why I was not advised about this, had two informal meetings and the priority was to change the default fund my PRSA was on to a better performing one. The focus of the last meeting was more on investment funds and maxing out the current PRSA, I guess knowing I had no funds yet to pay for this 2022 lump sum it just didn't come up, I will query it though.
 
wavejumper said:
My PRSA doesn't allow for lump sums,
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It's a salary deduction PRSA Scheme and you're paying €7,200 pa ?

I doubt that it's the case that it doesn't allow lump sums, meaning it can't be done . That's just a lazy answer if someone told you that. It's more likely that that as it's paid through a scheme that it's a PRSA tax certificate issue as the wording (Net Pay) will be different.

You can make a personal lump-sum, from your own resources, and the PRSA provider can set up a separate PRSA number/policy (from all the information they have already) so that the correct PRSA Tax Certificate is issued. If you've filing the claim online before 31/10 for 2022 the broker can give you a template of a document that you can upload once the payment is received by the product provider. If you're writing to local tax office of Revene you can use same template with cover letter stating that you're electing to backdate the payment to the tax year 2022, but they have to have that before 31/10.

Revenue can't help you until you get the above sorted.


Gerard.
 
GSheehy said:
It's a salary deduction PRSA Scheme and you're paying €7,200 pa ?

I doubt that it's the case that it doesn't allow lump sums, meaning it can't be done . That's just a lazy answer if someone told you that. It's more likely that that as it's paid through a scheme that it's a PRSA tax certificate issue as the wording (Net Pay) will be different.

You can make a personal lump-sum, from your own resources, and the PRSA provider can set up a separate PRSA number/policy (from all the information they have already) so that the correct PRSA Tax Certificate is issued. If you've filing the claim online before 31/10 for 2022 the broker can give you a template of a document that you can upload once the payment is received by the product provider. If you're writing to local tax office of Revene you can use same template with cover letter stating that you're electing to backdate the payment to the tax year 2022, but they have to have that before 31/10.

Revenue can't help you until you get the above sorted.


Gerard.
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Hi, I increased it to 600 in April, was 300 prior, and yes its a salary deduction scheme with my employer brokered by ivesco with Irish Life.

I was querying about the lump sum because I was told when I joined they weren't accepted but it wasn't brought up about this particular
situation, it was just me asking.

I can probably borrow from a relative while I wait for my funds to lodge and then refund them.

I'll call the broker now as they haven't replied yet and get this started today.
 
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