Superb post @CharlieMac - shows how emotive this decision can be, understandably so, but that it must be taken with the future in mind, not the past. You’ve won, you’ve climbed out of a deep hole, it’s a win not a failure.But I've spent a few months reading many posts in these forums, educating myself about the alternatives and I'm starting to understand that in my case selling would be the best choice for me now even though it will definitely feel like failure.
Our current pension contribution (between us) is 1k per month. If we continue even just that until I’m 68, our online fund value is showing as 621k. That’s without even maxing out the pensions. That’s with 12k a year going to the pensions (albeit including my employer contribution of about 10%). If my wife and I max out our pensions when mortgages are cleared, we’ll have 24k a year going in - 19k from us and 5k from my employer. That’s showing as over 1.1 million.Have you done the sums on what your eventual pension will be, maximising at your current salary? And will that be an amount that will give you the standard of living you will require if you do the max?
And I really urge you to cash flow plan the next 20 years, with a few scenarios ie all 3 go to college, 1 goes, 2 go etc. And see if your cash flow will support this and also continue maximising contributions. Because I think as most of your wealth is in property, one which is never to be sold/downsized,, the other pretty illiquid, at some stage, you will need to either reduce pension contributions or not fund something else, even with all the discipline in the world.
Might it make more sense to prioritise maximising pension savings over non-pension savings?Our take home amount has increased by about €600 so, for example, this month we were able to stick €750 into our buffer account.
The hope is that most months we will have €500 or so to place in this, even after AVC contribution (which is now at 8% of salary) and a further €200 put aside for company shares.
I assure you I am taking the comments on board
I have similar sized house with geothermal HP and our annual bill is about 3500. So yours isnt massively out of kilter but it is very very high (unlike mine which is just very high!)have done comparisons with others with similar houses and our consumption didn’t seem out of the ordinary, particularly given how often we are here
I've a geothermal heat pump too,house same size and have spent a lot of cash upgrading insulation, solar, windows, airtightness.have similar sized house with geothermal HP and our annual bill is about 3500. So yours isnt massively out of kilter but it is very very high (unlike mine which is just very high!)
And the original poster keeps saying stuff like this:Doesn't really look like it - posters have run the basic maths for you and you've dug your heels in again and again. You asked for advice, consensus is to sell the property (as it almost always is) - and you've come up with more and more reasons not to.
The plan is to maximise our pensions for at least 20 years anyway.
but then simultaneously arguing why it's a bad idea to put money into a pension because it's locked away...my plan is to maximise pension contributions for the next 25 years or however long I work.
Bulking up on the pension is very good but we won’t see that for another 20 years.
But if I put the money into a pension and, say, in a few years I want to help one of my kids out and need 50k or 100k - I won’t have access to that.
After all, once the money goes into the pension, it’s unavailable for the foreseeable future.
As I’ve explained, we have 20-25 years to drip feed our maximum tax deductible amount into the pension from salary and get the tax benefit of this. I’ve no problem with forfeiting this amount each month to build the pension.but then simultaneously arguing why it's a bad idea to put money into a pension because it's locked away...
I don’t envisage retaining the property but I’m in no rush to sell it either. House prices have increased 8% to 10% in the last twelve months and I listened to the Matt Cooper/Ivan Yates podcast Path To Power this morning which on a weekly basis points out the huge amount of issues with trying to get even near the amount of housing stock we need built. Supply is not going to meet demand for equilibrium anytime soon.Keeping that rental property doesn't make sense financially, you may as well admit that you're just going to do whatever you want. Which is fine, but it would have saved some posters a lot of effort had you done so at the start!
Not sure why you are asking for advice? You appear to have already decided on your plan of actionWhat’s the reason to rush into selling?
Not sure why you are asking for advice? You appear to have already decided on your plan of action
Not sure why you are asking for advice? You appear to have already decided on your plan of action
I asked for advice re other items like investing extra funds etc.
Our pension is minimal (only 24k)
In my opinion you should be looking to maximise your pension savings in preference to other options, including the rental property and possibly even including the employee stock incentive scheme (but that depends on the specifics of that scheme).Any thoughts on anything we may be missing or what we could improve?
What’s the reason to rush into selling?
You've moved the goalposts from "I'm not selling, I want the kids to have the choice to live in it as adults" to "Yeah I'm going to sell but what's the rush?" over the course of the thread.
The share incentive scheme is that yearly bonus goes into company shares and after 3 years is available tax free. The plan would be to take the bonus after the 3 years and put it into AVC then if we are not fully maximising pension by then.In my opinion you should be looking to maximise your pension savings in preference to other options, including the rental property and possibly even including the employee stock incentive scheme (but that depends on the specifics of that scheme).
I am pretty sure this type of plan is better than any pension contribution, full tax relief essentially at your marginal rate and not just deferring tax with part tax free and only have to wait three years, yes the shares can go down but so could whatever you invest pension in (if it’s risky assets)The share incentive scheme is that yearly bonus goes into company shares and after 3 years is available tax free. The plan would be to take the bonus after the 3 years and put it into AVC then if we are not fully maximising pension by then.
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?