Moneymakeover Couple in 30s - trying to make the right calls

[conor_mc]

Forget solar panels.

Couldn’t disagree more. Do the few hours research, there are plenty of online resources that can help avoid getting fleeced. Solar PV should comfortably pay for itself in about 6-7 years. You then effectively have an inflation-linked annuity for the next 20-odd years. Did the numbers for an early-retiring neighbour (early 60’s), 10k solar investment would cost around 40k to secure the same inflation-adjusted annuity that pays 100% to his spouse in the event of his early demise, for more or less the rest of their lives. Solar & battery is a no-brainer for most if you have the capital, imo.

 

[presidenttttt]

I agree solar panels can be great - I also have them at a great price with return around 6 years. However, in terms of priorities, I would not want a car on PCP, and I would maximise pension first. It is to be fair a no regrets move if you can get a deal with low payback period - a real low payback period i.e one calculated by you not a seller.

The needle mover for OP here will be assumptions about future income - a child can change the assumption of both working very quickly - and the equation will not be as simple as child minder cost is lower than income.

 

[Blackrock1]

However, in terms of priorities, I would not want a car on PCP,

It's a low repayment on a negligible interest rate and they already have the final payment saved if they want to keep it,I can't see an issue with that .

 

[Pinky22]

When your child is born, set up a bare trust. This will allow you to save 6k per annum tax free to your child. It means that when you want to retire their house deposit will already be in place.