I will start my saying some of the figures on other makeovers are intimidating! Well done to those of you who have been savvy and prudent over the years; I wish I had had your sense.
My makeover, by comparison seems like peanuts… However, this is my reality (and maybe others reading?) and I would very much appreciate your input.
Personal details
Age: 47
Spouse’s/Partner's age: Divorced
Number and age of children:
1, primary school aged
Income and expenditure
Annual gross income from employment or profession: It varies. I am a HCP and earned 54k last year, looking like €60k this year. Depends on amount of overtime/unsocial hours I work.
Monthly take-home pay:
Approx €3k after pension deduction & AVCs
Type of employment: As above, public service on Single Scheme
In general are you:
(a) spending more than you earn, or
(b) saving? Saving into various ‘pots’. Everything from very short term, such as Christmas to long term car/college. I have around €20k.
Summary of Assets and Liabilities
Family home worth €220k with a €135k mortgage
Cash of €20k (as previously mentioned - some of this in state savings)
Defined Contribution pension fund: €tiny / maybe €15k? I only qualified 4 years ago and have never paid onto a pension previously.
Family home mortgage information
Lender: ICS
Interest rate 2.45%, fixed for another 3.5 years.
18 years remaining on mortgage, but I am overpaying every month to reduce term.
Other borrowings – car loans/personal loans etc: No loans apart from mortgage
Do you pay off your full credit card balance each month? Yes
Other savings and investments:
Do you have a pension scheme?
Member of Single Public Service Pension scheme since 2018
Currently paying AVCs of 15%
What specific question do you have or what issues are of concern to you?
My concern is retirement. It’s college for my child. It’s making the right decisions over the course of the next 10 years, that will put me on the right path. Although I accept I will never be rich, I would like to be comfortable. I do not want you to be in a position of choosing between food or heat.
In the immortal words of Cher; if I could turn back time…. As it is, here I sit, 20 years off retirement and not feeling comfortable about my prospects.
I have spent many hours planning and calculating. My 5 - 10 year plan is as follows and I would appreciate if you could advise if I’m doing this right. Maybe there is something glaringly obvious that I am missing? I’m open to all and every suggestion. Thank you.
The Plan:
I intend to increase my AVCs to 20% in the new year. This, along with the 5% I pay through the SPSPS would bring me to the maximum 25% permitted at my age.
This rise in contribution will be covered by the upcoming building momentum rise and my yearly increment. I would intend to increase this figure in 5% increments as I get older and my age allows.
I am aware that pension contributions are deducted from reckonable income when applying for college grants. In 10 years and assuming everything hasn’t changed (which it very well could, of course), I will be paying 35% total into my pension. This will assist in securing some sort of grant on my salary. Or it would in 2022 anyway. The future may be different.
I currently save €500 a month, split between an emergency fund and car replacement account ( car is ok for another year or 2, it’s 2016). Both accounts are with credit unions. They are at nearly €10,000 combined right now. I intend to reduce this to €300 per month as I feel I do not need much more than that amount cash on hand.
I had also been saving the children allowance for future college. I have now transferred monies saved to date into a 10 year stage savings scheme (€8k total). I have other plans for that €140 a month going forward.
I currently overpay my mortgage by €200 per month. I intend to increase this to €500 using children’s allowance and moneys I would have previous saved to credit union. My aim is to be mortgage free or very close to by the time my child begins college in 10 years. I can overpay 10% a month without penalty at present.
All of the above leaves me living a simple life in the here in now. We will want for nothing, we will have security, but we won’t be living the high life by any means.
What do you think?
My makeover, by comparison seems like peanuts… However, this is my reality (and maybe others reading?) and I would very much appreciate your input.
Personal details
Age: 47
Spouse’s/Partner's age: Divorced
Number and age of children:
1, primary school aged
Income and expenditure
Annual gross income from employment or profession: It varies. I am a HCP and earned 54k last year, looking like €60k this year. Depends on amount of overtime/unsocial hours I work.
Monthly take-home pay:
Approx €3k after pension deduction & AVCs
Type of employment: As above, public service on Single Scheme
In general are you:
(a) spending more than you earn, or
(b) saving? Saving into various ‘pots’. Everything from very short term, such as Christmas to long term car/college. I have around €20k.
Summary of Assets and Liabilities
Family home worth €220k with a €135k mortgage
Cash of €20k (as previously mentioned - some of this in state savings)
Defined Contribution pension fund: €tiny / maybe €15k? I only qualified 4 years ago and have never paid onto a pension previously.
Family home mortgage information
Lender: ICS
Interest rate 2.45%, fixed for another 3.5 years.
18 years remaining on mortgage, but I am overpaying every month to reduce term.
Other borrowings – car loans/personal loans etc: No loans apart from mortgage
Do you pay off your full credit card balance each month? Yes
Other savings and investments:
Do you have a pension scheme?
Member of Single Public Service Pension scheme since 2018
Currently paying AVCs of 15%
What specific question do you have or what issues are of concern to you?
My concern is retirement. It’s college for my child. It’s making the right decisions over the course of the next 10 years, that will put me on the right path. Although I accept I will never be rich, I would like to be comfortable. I do not want you to be in a position of choosing between food or heat.
In the immortal words of Cher; if I could turn back time…. As it is, here I sit, 20 years off retirement and not feeling comfortable about my prospects.
I have spent many hours planning and calculating. My 5 - 10 year plan is as follows and I would appreciate if you could advise if I’m doing this right. Maybe there is something glaringly obvious that I am missing? I’m open to all and every suggestion. Thank you.
The Plan:
I intend to increase my AVCs to 20% in the new year. This, along with the 5% I pay through the SPSPS would bring me to the maximum 25% permitted at my age.
This rise in contribution will be covered by the upcoming building momentum rise and my yearly increment. I would intend to increase this figure in 5% increments as I get older and my age allows.
I am aware that pension contributions are deducted from reckonable income when applying for college grants. In 10 years and assuming everything hasn’t changed (which it very well could, of course), I will be paying 35% total into my pension. This will assist in securing some sort of grant on my salary. Or it would in 2022 anyway. The future may be different.
I currently save €500 a month, split between an emergency fund and car replacement account ( car is ok for another year or 2, it’s 2016). Both accounts are with credit unions. They are at nearly €10,000 combined right now. I intend to reduce this to €300 per month as I feel I do not need much more than that amount cash on hand.
I had also been saving the children allowance for future college. I have now transferred monies saved to date into a 10 year stage savings scheme (€8k total). I have other plans for that €140 a month going forward.
I currently overpay my mortgage by €200 per month. I intend to increase this to €500 using children’s allowance and moneys I would have previous saved to credit union. My aim is to be mortgage free or very close to by the time my child begins college in 10 years. I can overpay 10% a month without penalty at present.
All of the above leaves me living a simple life in the here in now. We will want for nothing, we will have security, but we won’t be living the high life by any means.
What do you think?
