Age / Spouse’s age: Both early 50's, 1 public sector, 1 private sector
Household income: Approx 200K combined (Salaries & rental)
Type of employment: Both in secure, pensionable employment
Expenditure pattern: A balance between savers and spenders
Rough estimate of value of home: E 600k - no mortgage
Other borrowings – car loans, etc: None
Do you pay off your full credit card balance each month? Yes
Savings and investments: E 200K cash earning 1.5%
Do you have a pension scheme?
Me: 2 schemes
Scheme 1: Deferred scheme, value 750K approx (consists of employer/employee contibutions plus AVCs), normal retirement age 65
Scheme 2: Current scheme, value 150K approx (consists of employer/employee contributions), normal retirement age 66
Spouse: Public sector pension
We both have a full record of PRSI contributions (approx 30 years to date) to qualify for state pension
Do you own any investment or other property? Yes
Property 1: E 300K (approx), mortgage approx E70K approx @ 5.5% variable, 12 years remaining
Property 2: E 300K (approx), mortgage approx E70K approx @ 5.5% variable, 12 years remaining
Both should be easily rentable as long as needed / saleable when needed
Ages of children: Mid/Late teens
Life insurance:
1. Me: Death in service benefit - multiple of salary, plus pension lump sums would be paid out on my death
2. Spouse: Death in service benefit - multiple of salary
I may look at retirement / reducing work any time from 60 onwards (e.g. retiring completely at 60, or "retiring early" from Scheme 1 at 60, while tapering working week).
What's good:
Debts are low, no home mortgage, 2 other mortgages are very manageable.
Pension provision for both of us should be in reasonable shape between occupational and state pension, and rental income.
What's not so good:
Cash savings are not currently the best use of money.
Currently not maximising pension tax relief, not making AVCs (but I have done in the past).
Questions - best options for spare cash after rainy day fund:
Deposit on another property - we're already well exposed to Irish property, not likely to be the best use of cash, would probably mean more borrowings, so not a preferred option.
Pay off existing mortgages - would give a return of approx 4% (5.5% on mortgage less 1.5% on savings). Again, not a preferred option - leaves all 3 properties mortgage free, but ties up available funds, only way to access liquidity in future would be to sell or re-mortgage some of the property assets.
Directly invest in shares - in a lump sum from cash, or a monthly amount from lump sum?
Invest in ETFs or similar - in a lump sum from cash, or a monthly amount from lump sum?
Improve pensions, me by making AVCs or spouse by buying back years of service? Seems like an obvious solution, but my pension is pretty well funded as is (but tax relief on AVCs is a good way to maximise return). While my 2 pensions are reasonably well funded, I may need to fund the current one further for early retirement.
Should I be looking at lifestyling my own 2 pensions, or is it too early?
Should we be looking at a Section 72 policy to minimise C.A.T. on any assets we may pass on?
Is it worthwhile meeting a financial advisor, and if yes, what do I look to get out of it / what should I be asking? Also, if anyone wants to recommend an advisor they've used, or any advisors on here want to DM me I'm open to that.
Any other suggestions that I haven't covered?
Household income: Approx 200K combined (Salaries & rental)
Type of employment: Both in secure, pensionable employment
Expenditure pattern: A balance between savers and spenders
Rough estimate of value of home: E 600k - no mortgage
Other borrowings – car loans, etc: None
Do you pay off your full credit card balance each month? Yes
Savings and investments: E 200K cash earning 1.5%
Do you have a pension scheme?
Me: 2 schemes
Scheme 1: Deferred scheme, value 750K approx (consists of employer/employee contibutions plus AVCs), normal retirement age 65
Scheme 2: Current scheme, value 150K approx (consists of employer/employee contributions), normal retirement age 66
Spouse: Public sector pension
We both have a full record of PRSI contributions (approx 30 years to date) to qualify for state pension
Do you own any investment or other property? Yes
Property 1: E 300K (approx), mortgage approx E70K approx @ 5.5% variable, 12 years remaining
Property 2: E 300K (approx), mortgage approx E70K approx @ 5.5% variable, 12 years remaining
Both should be easily rentable as long as needed / saleable when needed
Ages of children: Mid/Late teens
Life insurance:
1. Me: Death in service benefit - multiple of salary, plus pension lump sums would be paid out on my death
2. Spouse: Death in service benefit - multiple of salary
I may look at retirement / reducing work any time from 60 onwards (e.g. retiring completely at 60, or "retiring early" from Scheme 1 at 60, while tapering working week).
What's good:
Debts are low, no home mortgage, 2 other mortgages are very manageable.
Pension provision for both of us should be in reasonable shape between occupational and state pension, and rental income.
What's not so good:
Cash savings are not currently the best use of money.
Currently not maximising pension tax relief, not making AVCs (but I have done in the past).
Questions - best options for spare cash after rainy day fund:
Deposit on another property - we're already well exposed to Irish property, not likely to be the best use of cash, would probably mean more borrowings, so not a preferred option.
Pay off existing mortgages - would give a return of approx 4% (5.5% on mortgage less 1.5% on savings). Again, not a preferred option - leaves all 3 properties mortgage free, but ties up available funds, only way to access liquidity in future would be to sell or re-mortgage some of the property assets.
Directly invest in shares - in a lump sum from cash, or a monthly amount from lump sum?
Invest in ETFs or similar - in a lump sum from cash, or a monthly amount from lump sum?
Improve pensions, me by making AVCs or spouse by buying back years of service? Seems like an obvious solution, but my pension is pretty well funded as is (but tax relief on AVCs is a good way to maximise return). While my 2 pensions are reasonably well funded, I may need to fund the current one further for early retirement.
Should I be looking at lifestyling my own 2 pensions, or is it too early?
Should we be looking at a Section 72 policy to minimise C.A.T. on any assets we may pass on?
Is it worthwhile meeting a financial advisor, and if yes, what do I look to get out of it / what should I be asking? Also, if anyone wants to recommend an advisor they've used, or any advisors on here want to DM me I'm open to that.
Any other suggestions that I haven't covered?
