louislouis22096
New Member
- Messages
- 3
Personal details
Your age: 44
Your spouse's age: 45
Number and age of children: 2: 7 and 11
Income and expenditure
Annual gross income from employment or profession: €93k
Annual gross income of spouse/partner: currently career break, if full-time, €65k
Monthly take-home pay: 4,300 net approximately (one income)
Type of employment/Employer type: Both public sector, one considering leaving public for private as highly stressful working environment.
In general are you:
(a) spending more than you earn, or (b) saving?
Saving, without trying to. We don’t really socialise hugely, and don’t do foreign holidays.
Our son our priority.
Summary of Assets and Liabilities
Assets
Family home value: €800k
Savings: €330,000 (all in current accounts).
AVCS/PRSA’s: €227,000 between two of us, €160,000 for one, and €80,000 approximately other.
Second property, value: €650k and potential rental yield of €2,500 per month.
There is a potential inheritance at some point from one set of parents.
Liabilities
Mortgage on family home: €0
Family home mortgage information
N/A
Other borrowings – car loans/personal loans etc
Do you pay off your full credit card balance each month? N/A
If not, what is the balance on your credit card? N/A
Pension information
Both-public servants, but both late entrants, hence the AVCs/PRSAs from previous private sector roles as further up the page.
One is post 2013 scheme, and
One of us worked in UK, and has 27 years of UK state pension, by doing ‘buy back’ annually, if we continue to buy back a year, annually, one of us will have circa €13,000 UK state pension upon retirement.
In addition to UK state pension, there is 5 years of NHS pension too.
Other information which might be relevant
My spouse and I both work in public sector, my spouse works in especially stressful role, and is on career break. So current income is €93k for one of us.
However, a variety of good fortune, inheritance etc and pure fluke means we have our mortgage paid off, have a second property worth circa €650k, and substantial savings in the bank.
One of our two children has additional needs so long term we foresee either they will stay with us indefinitely, in to old age, or if they are independent enough, they could reside in the second property we have.
We’ve saved money without trying, but we clearly don’t spend big, and neither of us grew up with much money, so this is all very unfamiliar.
What specific question do you have or what issues are of concern to you?
What do we do with the €330 in savings?
What do we do with the second property? We don’t need to rent it out, and conscious there are risks associated with tenants, and also fact that 50% of rental income goes to tax-man, so part of us inclined to leave it empty.
How do we best plan to set things up for our son with additional needs? Is planning to hand him a house at 18 the best/wisest? Or sell it and keep the cash for him and sibling?
Pensions
My wife got two public sector pension estimates, retire at 60 and pension of €12,000 per year, or work to 65 for pension of €13,600 per year (today’s money). No brainer based on that to go at 60, or have we missed something.
On the pensions, and years people can retire at, have we got below correct?
Person one
Post 2013 scheme - Retire when? I’ve heard cost neutral early retirement? Does mean retire early as in 60 on reduced pension/lump, or does it mean retire 60 and don’t get lump/pension until later?
Plus PRSAs in place
Person Two
Pre-2013 scheme – In terms of superannuation entitlements as listed above, retire at 60/65, these would be, be able to draw down from 60/65? Or as presented are they actually drawn down 65?
Plus PRSAs in place
Our financial goals
Retire as early as possible, certainly both of us want to be able to retire at 60 or before.
We do not want to be over-pensioned in retirement and pay too much tax, so the optimum on pensions is what?
A couple retired can earn €88,000 while paying 20% tax, and anything over it is 40% right?
Travel like mad, now with children at the age they are, and again in years to come, conscious that health is wealth, and time to travel if feasible is always now.
We appear to have property worth €1,5 mil circa plus €330k savings, plus €227 in AVCs.
We want to be able to set our two kids up as best we can.
Our current strategy
Your age: 44
Your spouse's age: 45
Number and age of children: 2: 7 and 11
Income and expenditure
Annual gross income from employment or profession: €93k
Annual gross income of spouse/partner: currently career break, if full-time, €65k
Monthly take-home pay: 4,300 net approximately (one income)
Type of employment/Employer type: Both public sector, one considering leaving public for private as highly stressful working environment.
In general are you:
(a) spending more than you earn, or (b) saving?
Saving, without trying to. We don’t really socialise hugely, and don’t do foreign holidays.
Our son our priority.
Summary of Assets and Liabilities
Assets
Family home value: €800k
Savings: €330,000 (all in current accounts).
AVCS/PRSA’s: €227,000 between two of us, €160,000 for one, and €80,000 approximately other.
Second property, value: €650k and potential rental yield of €2,500 per month.
There is a potential inheritance at some point from one set of parents.
Liabilities
Mortgage on family home: €0
Family home mortgage information
N/A
Other borrowings – car loans/personal loans etc
Do you pay off your full credit card balance each month? N/A
If not, what is the balance on your credit card? N/A
Pension information
Both-public servants, but both late entrants, hence the AVCs/PRSAs from previous private sector roles as further up the page.
One is post 2013 scheme, and
One of us worked in UK, and has 27 years of UK state pension, by doing ‘buy back’ annually, if we continue to buy back a year, annually, one of us will have circa €13,000 UK state pension upon retirement.
In addition to UK state pension, there is 5 years of NHS pension too.
Other information which might be relevant
My spouse and I both work in public sector, my spouse works in especially stressful role, and is on career break. So current income is €93k for one of us.
However, a variety of good fortune, inheritance etc and pure fluke means we have our mortgage paid off, have a second property worth circa €650k, and substantial savings in the bank.
One of our two children has additional needs so long term we foresee either they will stay with us indefinitely, in to old age, or if they are independent enough, they could reside in the second property we have.
We’ve saved money without trying, but we clearly don’t spend big, and neither of us grew up with much money, so this is all very unfamiliar.
What specific question do you have or what issues are of concern to you?
What do we do with the €330 in savings?
What do we do with the second property? We don’t need to rent it out, and conscious there are risks associated with tenants, and also fact that 50% of rental income goes to tax-man, so part of us inclined to leave it empty.
How do we best plan to set things up for our son with additional needs? Is planning to hand him a house at 18 the best/wisest? Or sell it and keep the cash for him and sibling?
Pensions
My wife got two public sector pension estimates, retire at 60 and pension of €12,000 per year, or work to 65 for pension of €13,600 per year (today’s money). No brainer based on that to go at 60, or have we missed something.
On the pensions, and years people can retire at, have we got below correct?
Person one
Post 2013 scheme - Retire when? I’ve heard cost neutral early retirement? Does mean retire early as in 60 on reduced pension/lump, or does it mean retire 60 and don’t get lump/pension until later?
Plus PRSAs in place
Person Two
Pre-2013 scheme – In terms of superannuation entitlements as listed above, retire at 60/65, these would be, be able to draw down from 60/65? Or as presented are they actually drawn down 65?
Plus PRSAs in place
Our financial goals
Retire as early as possible, certainly both of us want to be able to retire at 60 or before.
We do not want to be over-pensioned in retirement and pay too much tax, so the optimum on pensions is what?
A couple retired can earn €88,000 while paying 20% tax, and anything over it is 40% right?
Travel like mad, now with children at the age they are, and again in years to come, conscious that health is wealth, and time to travel if feasible is always now.
We appear to have property worth €1,5 mil circa plus €330k savings, plus €227 in AVCs.
We want to be able to set our two kids up as best we can.
Our current strategy
- Continue maxing out pension contributions each year?