misterdarcy
New Member
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ARF : €1,300,000
What specific question do you have or what issues are of concern to you?
Just to clarify - €1.3M is the residual value after the tax free lump sum was taken?ARF : €1,300,000 25% tax free part already cashed in few years ago and used to help with children's education and garden makeover and family cruise
You mean shares in one of your employers?Company shares : €12k
Really depends on what your likely expenditure might be and if/how your ARF can deliver that.Simple question really. Can we afford to hang up the boots ?
You mean shares in one of your employers?
Holding shares in this way is concentrating risk with your remuneration and a chunk of your investments in one place.
Sorry I did a cut and paste of the original checklist. Corrected now. ApologiesAre you asking questions or taking questions?!
Yes , I've checked in to this . Both of us have made the required contributions for 100% entitlement.to the state pension.Just to clarify - €1.3M is the residual value after the tax free lump sum was taken?
You mean shares in one of your employers?
Holding shares in this way is concentrating risk with your remuneration and a chunk of your investments in one place.
Really depends on what your likely expenditure might be and if/how your ARF can deliver that.
Are you both in like to qualify for full state contributory pensions at 66?
Just to clarify - €1.3M is the residual value after the tax free lump sum was taken?
You mean shares in one of your employers?
Holding shares in this way is concentrating risk with your remuneration and a chunk of your investments in one place.
Really depends on what your likely expenditure might be and if/how your ARF can deliver that.
Are you both in like to qualify for full state contributory pensions at 66?
Just to clarify - €1.3M is the residual value after the tax free lump sum was taken?
You mean shares in one of your employers?
Holding shares in this way is concentrating risk with your remuneration and a chunk of your investments in one place.
Really depends on what your likely expenditure might be and if/how your ARF can deliver that.
Are you both in like to qualify for full state contributory pensions at 66?
How can we answer this question when you haven't told us the most important financial information. How much do you spend monthly. How much will you need when you retire.Simple question really. Can we afford to hang up the boots ?
Thanks Rasputin. I don't have any car loans , thankfully but was thinking that the potential growth on the shares would outstrip the interest on the mortgage over the next few years ( I might be wrong) but the first opportunity I get I intend to pay off the mortgage completely from any surplus funds after tax income. I would think it would be foolish to use additional ARF drawings to pay off the mortgage because it would cost be 40% + PRSI + USC which would be way more than the interest over 7 years on the mortgage.You've done exceptionally well to build 1.623 million (inlcuding the 25% taken) in pension contributions at your age an on your salary. Personally, I would feel I had plenty to retire on if I had 1.3 mil+ in an ARF, as I know I will not have even close to that aged 66, or even 68, but as mentioned above, your spending habits could be very different.
Before I bit the bullet, I would try and get rid of that mortgage asap, and any other car loan etc - I would use the cash and sell those shares (if I could).
Yes , but if I hope to retire I'd be using this €40 k for day to day living as there won't be any other income. Maybe the answer is in your question : work another 12 months , pay off the mortgage with the income generated from working and then hang up the auld boots ?Given the fact that you are over 60, are 4% imputed distributions not already applicable to your ARF?
4% of €1.3m is €52k, just short of €40k per annum net of tax.
Thanks Sarenco. Total GROSS income at the moment is €56K salary +€25k spouse + €52k ARF=€133k. This reduces to the ARF figure of €52K gross annually or €40k annually after tax if we jack in the work Our current annual expenditure would be about €70 k at the moment including mortgage repayments of roughly €4800 per anum and €16k per anum on college fees ,general support and accomodation for my two boys. One of them will be " off the payroll" hopefully in the summer of '24 , the other 3 more years left.Well, my question is really whether your current €56k income includes a €52k distribution from your ARF?
I’m sure most couples could live fairly comfortably on €40k (net) per annum where they are debt free.
Doesn't that mean that you can't really afford to retire yet?Our current annual expenditure would be about €70 k at the moment
We should have been told this in the OP. That he's got an extra income of €52K he's earning, unless I'm completely misunderstanding.Well, my question is really whether your current €56k income includes a €52k distribution from your ARF?
I’m sure most couples could live fairly comfortably on €40k (net) per annum where they are debt free.
Ah, thanks for the explanation - that all makes sense.Total GROSS income at the moment is €56K salary +€25k spouse + €52k ARF=€133k. This reduces to the ARF figure of €52K gross annually or €40k annually after tax if we jack in the work Our current annual expenditure would be about €70 k at the moment including mortgage repayments of roughly €4800 per anum and €16k per anum on college fees ,general support and accomodation for my two boys.
I did mention the ARF of €1.3k. Anyway , sorry for not being clearer.We should have been told this in the OP. That he's got an extra income of €52K he's earning, unless I'm completely misunderstanding.
Indeed. I'm still trying to figure out how this question could have been posed in the first place?So, I think you have answered your own question - with an annual expenditure of €70k per annum you obviously can’t afford to retire on a net income of €40k per annum.
Simple question really. Can we afford to hang up the boots ?
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