jonahmurphy
Registered User
- Messages
- 17
Property 1, Value €420,000. Mortgage €194,000 Interest only @ 00.80% Tracker. Rent €1680/month
What is the current value of your pension and how is it invested?Do you have a pension scheme? Yes. Maxed out on all fronts.
Other borrowings:
Property 1, Value €420,000. Mortgage €194,000 Interest only @ 00.80% Tracker. Rent €1680/month
Property 2, Value €160,000. Mortgage €120,000 Capital and interest @ 00.80% Tracker. Rent €755/Month
Property 3, Value €130,000. Mortgage €105,000 Capital and interest @ 00.80% Tracker. Rent €680/Month
Property 4, Value €160,00. No Mortgage. Rent €780/Month
Hi SarencoWhat is the current value of your pension and how is it invested?
It's important to look at your asset allocation across all your accounts.
Hi CoyoteHave any of the properties increase in value since you bought? CGT might be an issue if so.
Are you thinking about estate planning? With your wealth your kids will have an inheritance tax bill.
Have been around people who are planning for retirement and they feel the max income needed for a couple to retire should be about 75K for tax reasons, not sure it this is the case.
Apologies, that is what i meant. saying that €75K would probably be enough for us.Not sure that makes much sense. People usually think about the minimum income people need in retirement.
What they probably mean is that they pay 20% tax up to about €75k and 40% after that.
So if they have an Approved Retirement Fund, they should draw down up to €75k a year to use up the 20% tax band in full.
Brendan
Well then CGT isn't going to be a material consideration in the scheme of things.Property 1 has, its been on interest only for the past 17 years and has been rented for this period. the same tenants for the past 15 years.
Properties 2 & 3 are and negative by 40K each.
Property 4 i have discussed on AAB before, bank offered a deal whereby i settled a mortgage of about €250K for 155K.
The value is probably closer to €175,000 after a brief chat with an EA locally.
Thanks CoyoteWell then CGT isn't going to be a material consideration in the scheme of things.
You and spouse can make gifts of up to €3000 each per annum to each child without impacting lifetime CAT thresholds. With your wealth I would already start thinking about it.
There may be some kind of product that can only be accessed after a certain age. Not sure myself.is there a method of gifting them money but they have on access until they are finished college and have full time jobs etc. (deposit for a house)
CheersThere may be some kind of product that can only be accessed after a certain age. Not sure myself.
If you want to gift them a house deposit it is much more tax efficient to build it up over time.
Maybe best to start a new thread on this in a different forum. I know there is lots of expertise on this.Sounds like a great idea, just need to understand the best way of doing it.
Prisma 4 is a multi-asset fund that invests in equities, bonds, property and alternatives. Nothing wrong with that but you obviously have significant investments outside your pension that should be taken into account in determining your overall asset allocation.The pension is with Zurich, Prisma 4 from memory.
Really helpful, thanks you.Prisma 4 is a multi-asset fund that invests in equities, bonds, property and alternatives. Nothing wrong with that but you obviously have significant investments outside your pension that should be taken into account in determining your overall asset allocation.
Also, your spouse will have a significant State pension, which could be considered somewhat "bond-like".
In your shoes, I would transfer your pension to Zurich's indexed global equity fund (managed by BlackRock). And you should definitely keep maximising your pension contributions.
As regards your investment properties, I would be inclined to sell Property 4 (which I understand will generate a capital loss that you can carry forward) and I would use the net proceeds to pay off your PPR mortgage.
Otherwise, I would be inclined to hang onto the other three rental properties for the time being - they are clearly very profitable with no large latent capital gains to worry about.
Your €120k cash deposit is earning approximately zero interest so you could use some of the cash to pay down one of the mortgages on the rental properties. Alternatively, you could buy another term State savings product if you want to retain liquidity.
Hope that helps.
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?