Money Makeover Details: Age: 50 Spouse’s/Partner's age: 53 Annual gross income from employment or profession: €98,000 Annual gross income of spouse: €49,000 Monthly take-home pay: € 7,650 Monthly expenses: circa €5k Groceries etc 1,100 Mortgage 1 1,436 Mortgage 2 860 Gas and Electricity 150 Property Tax 54 School Fees x 2 (over 9 months) 1,000 Car Insurance x 2 95 Diesel 120 Holiday Fund 250 Phone, 3 mobiles, TV, Broadband 140 Type of employment: Both in private sector In general are you: (a) spending more than you earn, or BREAKING EVEN. We’re breaking even (b) saving? We have a small savings pot– see below Breaking even Rough estimate of value of home: €600k Amount outstanding on your mortgage: €217,000 (8 years left on it) rate is 3.37% which I haggled with EBS to get. It is split in 2 as one was the house purchase, the other the extension. One is €90k, the other €127k Other borrowings – car loans/personal loans etc.: None, all paid off – see below. Do you pay off your full credit card balance each month? Yes, always. Savings and investments: About €7,600 in equities; Ryanair shares which have done v well over the years. Got badly burnt on AIB and Anglo shares in 2008. Plus we have about €16,000 in cash savings Do you have a pension scheme? Yes, both in DC schemes. 11% employer and 5% personal for me. Can’t stretch to making AVCs yet. Current total value is €445,000. Partner pays 5% and employer matches with 5%. Pension fund amounts to circa €90,000 (note: includes 10 years preserved benefits in a bank DB scheme). Do you own any investment or other property? A share in holiday home. 3 years left on 20 year mortgage. €160 per month mortgage cost. We don’t rent it out, too much like hassle. Ages of children: 18, 13 Life insurance: We both have policies that pays 4 x Salary on death. Both also have serious illness cover in place. Life cover for mortgages also in place. Questions We’re in Dublin and probably overstretched with the house we bought back in 2005 but are v happy where we live. We’ve pared every utility and other financial products and health insurance back to the bone. We shop sensibly and other than wine at home at the weekend and the few pints here and there don’t lead an extravagant lifestyle. We both need cars which are always bought second hand 3 – 4 years old which we keep for 2 – 3 years and then trade in . . . rinse and repeat. We received a net inheritance of €50k last year which allowed us pay off debt, make some home improvements, fund a family holiday and pay lump sums for school fees for the boys to ease the monthly repayments I will soon be receiving an inheritance as parents now deceased. Not sure how much as probate only underway since June and family home is now on the market. Fair Deal x 2 and other taxes will be due. If lucky, it will be circa €100,000 net. Plan is to try and pay off one of the mortgages with that lump sum to free up some cash-flow for a) general living and b) some savings/AVCs. Interested in views on how we are doing generally and what is the wisest way/best principles for managing the inheritance when it arrives. Eldest will hopefully go to college next year so that will need to be funded, though given the school fees we are currently paying we expect to be paying less. Also both working full-time but would love to retire early, say 62 or 63 if work, health and the fates allow it. Neither will be eligible for state pension until age 68.