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Hitting that 50 yrs milestone and re-assessing our priorities so would welcome an opinion or two.
Age: 49
Spouse’s/Partner's age: 50
Annual gross income from employment or profession: €100,000
Annual gross income spouse: €0 (never worked - disabled, no pension possibilities, no state income since marriage as means tested)
Type of employment: Public sector employee
Expenditure pattern: Generally strong 'savers'
Family home: €300,000, mortgage free
Investment Property: Value: €240K+, Mortgage €60K, Tracker: ECB+0.6%, 7yrs remaining. Rented out since building with ~€3,500 net income (€10.5K gross) after mortgage/expenses/tax. Original cost ~€235K.
Other borrowings – car loans/personal loans etc: None, one car.
Do you pay off your full credit card balance each month? Yes
Savings and investments:
€200,000 savings. Could need €50K in coming year or two for renovations and car change.
Do you have a pension scheme?
Yes, public sector (pre 1995) so could retire at 62 with max benefits though likely prefer to go at 60. No need to 'top-up' pension.
Ages of children:
20, 19. (in or starting 3rd level, no debt & should covered one through 3rd level from day-to-day income)
Life insurance:
Yes, though <€200K (opinion?). Also income protection and work life assurance. Usual mortgage protection policy.
What specific question do you have or what issues are of concern to you?
Being a landlord is difficult and are very much inclined to sell investment property to remove the hassle. Even providing for rainy day, outstanding education costs, €50K for PPR renovations and some CGT on sale, this would leave a total savings after sale of ~€270K available to invest.
We could likely rent for a little more (maybe €11.5K pa) but tax will consume most of the gain. Though fortunate with tenants, it would be a concern should we have a problematic tenancy in the future. The market is the strongest it's been for selling this property and I am optimistic of a ready sale. So should I sell? Had considered diverting rental income to OH so she could be viewed as double earner and treated better tax-wise with possibility to invest in pension also but, it seems (as I understand) that this would not work. Being single income couple means we don't get wider tax band and are hit with marginal rate early. Perhaps place investment property solely in OH name and she derive an 'unearned' income from it? Still unsure on this issue.
And if we sell, what would the forum recommend for the €270K by way of investment? A better quality of life would be our priority as work is demanding and carrying some family health difficulties. I would hope to retire at 60 and in addition to a good pension (>€40K) would receive a lump sum of >€135K. So the €270K could be viewed as long-term investment. Partner has never worked so no option available to invest in a pension for her.
Would welcome any ideas and thanks.
Age: 49
Spouse’s/Partner's age: 50
Annual gross income from employment or profession: €100,000
Annual gross income spouse: €0 (never worked - disabled, no pension possibilities, no state income since marriage as means tested)
Type of employment: Public sector employee
Expenditure pattern: Generally strong 'savers'
Family home: €300,000, mortgage free
Investment Property: Value: €240K+, Mortgage €60K, Tracker: ECB+0.6%, 7yrs remaining. Rented out since building with ~€3,500 net income (€10.5K gross) after mortgage/expenses/tax. Original cost ~€235K.
Other borrowings – car loans/personal loans etc: None, one car.
Do you pay off your full credit card balance each month? Yes
Savings and investments:
€200,000 savings. Could need €50K in coming year or two for renovations and car change.
Do you have a pension scheme?
Yes, public sector (pre 1995) so could retire at 62 with max benefits though likely prefer to go at 60. No need to 'top-up' pension.
Ages of children:
20, 19. (in or starting 3rd level, no debt & should covered one through 3rd level from day-to-day income)
Life insurance:
Yes, though <€200K (opinion?). Also income protection and work life assurance. Usual mortgage protection policy.
What specific question do you have or what issues are of concern to you?
Being a landlord is difficult and are very much inclined to sell investment property to remove the hassle. Even providing for rainy day, outstanding education costs, €50K for PPR renovations and some CGT on sale, this would leave a total savings after sale of ~€270K available to invest.
We could likely rent for a little more (maybe €11.5K pa) but tax will consume most of the gain. Though fortunate with tenants, it would be a concern should we have a problematic tenancy in the future. The market is the strongest it's been for selling this property and I am optimistic of a ready sale. So should I sell? Had considered diverting rental income to OH so she could be viewed as double earner and treated better tax-wise with possibility to invest in pension also but, it seems (as I understand) that this would not work. Being single income couple means we don't get wider tax band and are hit with marginal rate early. Perhaps place investment property solely in OH name and she derive an 'unearned' income from it? Still unsure on this issue.
And if we sell, what would the forum recommend for the €270K by way of investment? A better quality of life would be our priority as work is demanding and carrying some family health difficulties. I would hope to retire at 60 and in addition to a good pension (>€40K) would receive a lump sum of >€135K. So the €270K could be viewed as long-term investment. Partner has never worked so no option available to invest in a pension for her.
Would welcome any ideas and thanks.