Moneymakeover 53 yr old looking to retire in 10 years, what to do with current savings/lump sum

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blueskys

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Age:
53
Spouse’s/Partner's age:
50

Annual gross income from employment or profession:
E70k
Annual gross income spouse:
E50k

Type of employment:
I’m public sector, she is private.

Expenditure pattern:
We’re both generally 'savers'.

Rough estimate of value of home
E450,000
Mortgage on home
Mortgage is paid off.

Other borrowings – car loans/personal loans etc
None

Do you pay off your full credit card balance each month?
Yes

Savings and investments:
c.110k - split between savings (50%) and shares/ETFs on degire (50%)
Looking to put the savings back into a term deposit account with either Raisin or Avant money when they open.
Don't trust having everything in shares.

Do you have a pension scheme?
Current pension scheme with public sector - 26k in AVC with New Ireland via IPF (Want to change this to Exec only due to fees)
14k in company scheme
100k in old pension scheme via previous employer.
She has c 40k AVC and approx 70k in savings.


Do you own any investment or other property?
No.

Ages of children:
11

Life insurance:
Yes.

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

Looking to make the best use of what we have already saved and hopefully retire in 10 years time.
We would ideally like to purchase a home for ourselves in 10 years time and leave our own house to Daughter.
Unsure as how to go about switching from current AVC to execution only- Do i just instruct payroll to stop paying or instruct New Ireland/IPF
of decision to leave scheme? (They said there is no cost to switching/leaving scheme). Is there a recommended sequence of steps to take here?
Also wanted to simplify shares into just one etf eg. Vanguard lifestrategy 80/20 and pay 500 per month into same for next 10 years.

Any investment advice would be appreciated.

Thanks.
 
For the AVC, my understanding is that you'll just have to write to them and stop it. And then go find a broker and send money to them each month (or an annual lump sum). Then you'll have to apply for the tax back each January. That's my plan. I'm public sector. They offered me three companies I could use to go through payroll with my AVC - New Ireland, Cornmarket and one other gang. All crazy high fees so I went solo.

Do you actually have €180k in savings (or is her 70 within your 110)? It's easier if you put all the savings in one pot and think of you and your wife as a team. And then plan. It's less efficient to think of 'her' money and 'your' money. If you put her amount thats in cash and yours it'll be clear that you've way more than you could ever need sitting on deposit making very little. The biggest threat here is inflation and your money staying the same.
 
Thanks a lot, that's a good point re pooling the savings. Also thanks re the AVC, was wondering if the once a year lump sum is the best thing.
 
Once a year lump sum runs a risk because of buying all the unit funds at the same price.

You might get to buy during a dip or peak in the fund price.
You might do well some years and badly other years.

If you bought monthly you would spread the risk and likely get each years investment at the average price for each year.
 
S class - is it possible to make 12 one-off payments to a AVC with out having a setup a direct payment each month?
 
Yes you could do that. It should be possible to pay into your AVCs by electronic fund transfers. You could pay in at any intervals of your own choosing.
 
Good to know…thanks a million.

PS: I had the experience of paying a yearly payment and then seeing fund drop 30%. Not a nice feeling.
 
Depending on what pension company you go with they may not give you 100% allocation on your one-off payments unless they are above a certain amount.
 
You doing fine financially but you have 2 big competing "wants" in your list

blueskys said:
hopefully retire in 10 years time.
Click to expand...
Do you mean for you to retire or for both of you? I don't think you have the funds for both to retire early. Your spouse does not have much in her pension so they really need to start maxing out contributions now as do you.

blueskys said:
We would ideally like to purchase a home for ourselves in 10 years time and leave our own house to Daughter.
Click to expand...
I really don't think you have the funds to do this. You will probably be able to support your daughter financially but not with a full house. She would be better served by investing in her education and earning potential

You will need all available funds to replace income if you want to retire early. You will not be in a position to tie all of your wealth up in 2 properties if you want to maintain your lifestyle

If you are not already jointly assessed, make sure that you are so that you take full advantage of 40% tax relief for your wife
 
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