Children's Education & Pension

C

cityslicker

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Looking for advice.
Married with 3 kids and were both 41.
Mortgage paid off, no debt,no pension, no saving.
Gross income combined 45,000 euro per annum but this should rise in 3 years as gone back to college myself. Construction didn't really work out.
I'm thinking should we really concentrate on pension or should we split it between pension and saving for kids education.
Kids will be in college from approx. 2024 to 2032. In today's money terms was thinking 40,000 x 3 so 120,000 euro
All advice welcomed.
 
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As a married couple with both working, you can earn up to €67,600 before you pay tax at 40%. In other words, you would only be getting tax relief at 20% on your pension contributions. So you should not be making pension contributions.

When your income rises and you are being taxed at 40% on your marginal income, you can start contributing to your pension.

With 10 years to do to your kids' education, you should build up a portfolio of shares to maximise the return. As you get within a few years of spending it, you might consider switching to deposits. But if you put it on deposit now, there is a significant risk that you will lose a lot through inflation and taxation.

Brendan
 
Thanks Brendan. This make things a lot clearer. After getting badly burned from stock markets previously (not bank shares) I would be a little nervous of getting burned again. To move forward what do you think should be my next step.
 
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