Johnny Lawrence
Registered User
- Messages
- 1
Hello,
I am 41. I needed to stop my AVCs for all of 2020 because I was trying to fund a significant renovation of my home. That's finished now. Outside of my mortgage, which I'm comfortable with, I have some other debts related to the refurb job. I owe the Credit Union €58,000 plus €18,000 (both at 10%) and I owe Bank of Ireland €18,000 (the rate is 7.5%). I also owe €27,000 on a 0% PCP deal.
I have €300,000 in my pension fund and between my employer and I there's around €40,000 a year going into the fund. It's invested in Zurich's Global Equity fund at a cost of 0.45% a year.
I'm about to complete my 2020 tax return and I have €20,000 saved. I have scope to make an AVC for 2020 of around €20,000 which will cost me €12,000. I'm on the fence about whether to clear the €18,000 Credit Union loan now or to do the AVC. If I don't do it by 31 October, I've missed out on a year's contributions. I would keep the €8,000 that's left for emergencies pending me being able to build up my savings again.
Using the money to clear the loan instead might seem the wise thing to do but I have two very good guaranteed bonuses coming in December 2021 and December 2022. With that money, I'll be able to clear the Credit Union loans, the Bank of Ireland loan, the PCP finance, set aside some money for emergencies, and pay down my mortgage a bit.
If I had that money now, I'd use some of it to do the AVC, but I don't. So basically I'm not sure what to do! Your help would be much appreciated.
Thank you,
John
I am 41. I needed to stop my AVCs for all of 2020 because I was trying to fund a significant renovation of my home. That's finished now. Outside of my mortgage, which I'm comfortable with, I have some other debts related to the refurb job. I owe the Credit Union €58,000 plus €18,000 (both at 10%) and I owe Bank of Ireland €18,000 (the rate is 7.5%). I also owe €27,000 on a 0% PCP deal.
I have €300,000 in my pension fund and between my employer and I there's around €40,000 a year going into the fund. It's invested in Zurich's Global Equity fund at a cost of 0.45% a year.
I'm about to complete my 2020 tax return and I have €20,000 saved. I have scope to make an AVC for 2020 of around €20,000 which will cost me €12,000. I'm on the fence about whether to clear the €18,000 Credit Union loan now or to do the AVC. If I don't do it by 31 October, I've missed out on a year's contributions. I would keep the €8,000 that's left for emergencies pending me being able to build up my savings again.
Using the money to clear the loan instead might seem the wise thing to do but I have two very good guaranteed bonuses coming in December 2021 and December 2022. With that money, I'll be able to clear the Credit Union loans, the Bank of Ireland loan, the PCP finance, set aside some money for emergencies, and pay down my mortgage a bit.
If I had that money now, I'd use some of it to do the AVC, but I don't. So basically I'm not sure what to do! Your help would be much appreciated.
Thank you,
John