Best use of 150k lump sum ?

[isley]

Age:
30
Spouse’s/Partner's age:
29

Annual gross income from employment or profession:
Recently unemployed / jobseekers approx €200 p/w
Annual gross income spouse:
E25,000

Type of employment:
N/A

monthly expenditure

Mortgage interest only €600
Diesel €200
Food €250
Bins €12
Sky €25
Life insurance €30
House Insurance €40
Car Insurance €90
Phone €40
Car Tax €35
ESB €110


Rough estimate of value of home
€250,000

Mortgage on home
€318,000 - 27 years left

Type of mortgage: Tracker, interest only for next 9 months ( not sure of the interest rate, mortgage with AIB )

Other borrowings – car loans/personal loans etc - Credit Union €5,000


Credit card €3000 owed

Savings and investments: €1500 in Credit Union

Do you have a pension scheme?
None

Do you own any investment or other property?
No.

Ages of children:
2+1 on way

Life insurance:
Yes.

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

I have a lump sum of €150,000 which will be available to me in august of this year basically i'm looking for advice on how best to use this much needed cash. Our obvious first thoughts are to plough the whole thing into the mortgage, Or to pay monthly as usual. My employment situation is pretty bleak so i plan to return to college for 2/3 yrs.

Any advice greatly appreciated
Thanks!

 

[chlipps]

Sorry to hear of your dilemma as regards work but good to see 150k on the way. My suggestions

1) Clear the credit card and then cut it up
2) Clear the credit union loan.
3) Do not plough the money into mortgage. If you plough it in there then you have no cash available to make your monthly repayments
4) Put remaining money into high interest savings accounts
5) Who is minding your child? mind next child? Have you excluded creche costs above?
6) Get rid of sky as you dont need it. Go with free to air channels

You seem to be spending approx 1500 per month... possibly few other costs missing like health insurance etc.. so say if you are spending 2k per month, then the 140k+ remaining after you clear your loans will allow you live comfortably for few years to allow you get trained and back into work (hopefully available when training complete). Only issue is bank will probably not allow you stay on interest only for much longer so you also need to factor that into your calculations

Best of Luck