I think we need to switch our mortgage but am not sure whether to switch to AIB 2.95% variable which would allow us to overpay or KBC 5 year fixed at 2.65 % in view of the possibility that variable rates may start to rise in the next year.
Annual gross income from employment or profession: 135,000
Annual gross income of spouse: 55,000
Monthly take-home pay 8,600
The marginal tax rate is over 50%, higher if you are a State employee (pension levy). It sounds about right to me.I would have expected the take home to be higher? That's an effective rate of 44% you have there...
Edit - how much are you putting into a pension?
My OH is covered in case of death in service but I'm not. We both have income protection. Before when we looked at life insurance separate to the mortgage term life the fact my OH smokes drove up the premiums. Sadly this hasn't changed but nobody's perfect everyone has their vice however from some of the comments I think I should be looking for life insurance myself to protect the kids in the case of my death.
@SBarrett thanks for all suggestions in terms of automating savings do you mean direct debit into a regular saver account? We do save regularly but it's not automated which I agree would guarantee more consistency. You mentioned putting savings into an investment fund, do you mean along the lines of the funds that the personal pension is going to? I'm not really familiar with investment funds and need to broaden my knowledge first before putting money into one.
That'll be the easiest part of switching.Was it difficult to arrange the split?
The marginal tax rate is over 50%, higher if you are a State employee (pension levy). It sounds about right to me.
Run it again for a single person with no dependents. It will make you cry.I ran the numbers into Deloitte's income tax calculator, admittedly using with the defaults (with no pension contributions), and it's calculating a take home of 9,754 per month.
On a combined salary of 190k, the total tax take is 73k - how progressive is that!
Yeah, it's nuts. But, hey, it's progressive!Run it again for a single person with no dependents. It will make you cry.
They pay €86k in taxes.
I suspect it could easily happen that one was unable to work but not be covered by their serious illness policy. I wouldn't touch it.I would priorities serious illness cover.
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