In a position to job share?

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pocoloco

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Long time viewer and take a lot from other posts in this Money Makeover - thanks to all who contribute.



My Details:
Age 43
PAYE Worker
Income €70,000
Bonus approx. €16,000 PA, of which I make €5,000 PA single contribution to my pension in addition to below

Pension: Executive Pension
Current Value €170,000
Current Employer Contribution @ €870pm
Current Employee Contribution @ €500pm



Spouse Details:
Age 44
Teacher In position since 1998, ( 23 years service)
Income €65,000
Pension - Teachers’ Pension
AVC’s Current annual contributions @ €5,800 (monthly circa €450)
The Current Value @ €90,000
The Projected value at retirement age of 55 @ €225,000


Other:

- 3 children, all under 10
- Main PDH – Currently € 90K Mortgage O/S (value circa 460K)
mortgage @ 860 pm however I overpay @ €1100

- Rental Property – Currently € 80K Mortgage O/S - the value is about €130K)
monthly rental income @ €950 while the Mortgage Payments are @ €810

- Rental property – Currently €Zero monthly income as I give same to my parents - €120K Value, no mortgage

- Holiday Home Spain– no income from same - €200K Value, no mortgage

- Other Investment – Site purchased outright with a value of €65K. No income off same.
- Shareholding – currently hold a shareholding with employer presently worth approx. €225K - this would fluctuate as I own a % shareholding.


Car loan - €20K @ €500pm
No credit card debt
Savings @ €15K
Serious illness insurance policy in place.
Death in Service (4 times) policy in place.
Wife has no serious illness policy in force.
Childcare costs @ €500PM
Currently all tax credits are sitting with my wife.
Future Expenditure - intend to do a job on the house @ approx €40K cost in the near future
Wifes diesel costs for work @ €350 PM

Query:

The old adage reasonably asset rich/cash poor comes to mind as at the end of the month both bank balances quickly approach Zero. This is by design rather than accident though as I'll spend what i have so over the years have directed income towards debts etc on the 1st of the month as what I don't have I cant spend.

Of late with the pressures of work & business expanding, kids having to be dropped here, there & everywhere etc life has become very busy....add in wanting to get the kids into after school activities etc and my thoughts have come around to the possibility of my wife going on a 50/50 job share which would take the pressure off somewhat.
Just at the stage where I thought things might be getting easier but instead they have ramped up!

What would those in the knows take be on this - what would the ramifications be with respect of take home / tax credits / my take home / effects on teachers pension , AVC's etc ? - while i credit myself with being reasonably intelligent such matters make me break out in a sweat due to my lack of knowledge.

Also on the above financial snapshot is there anything I'm missing or I should be addressing differently.

Thanks
 
Without any major adjustments:

You have a car loan and you're overpaying your mortgage by 1100? Surely the interest rate on your car loan > mortgage interest on your rental > mortgage interest on your PDH? Redirecting the overpayment will increase the return.

15k savings, are you building this up for your renovation. It would be better to clear the car loan with the savings, then with 1100 + 560 you would have the remainder cleared in 3 months. You then have 1650 p.m. to use for pension/savings/overpayments.

Income for your parents could be handled better? A deed of covenant could be more tax efficient. Yourself and spouse could gift them €12k tax free per year also (€6k each). Currently they are likely paying tax on the rental income if you're not?

What's the plan for the site? What's the plan for the holiday home?

Sell an asset, live your lives, you can afford to!!
 
@Itchy many thanks for taking the time to read and respond.

My apologies for not being clearer re mortgage overpayment - I'm overpaying by 240, bringing payment to 1100 but nevertheless your point does hold true & I hear you with respect of the adv of paying off the Car loan instead of the mortgage (esp as its an an post loan and there are no penalties to paying off earlier.)

Yes will look into the deed of covenant - am paying tax on rental income at the moment, though giving the full rent amount to the parents so getting hit with a double whammy so to speak.

€15K savings earmarked for the house works.

Site is a long term speculative investment, I believe it will be worth multiples of its current value in 15/20 years and in the back of my head I have it earmarked for the kids when they are no longer kids and will give them a bit of a start be it weddings, deposit etc etc.

Holiday home - we continue to use it - Wife and kids in normal times spend 2 months of the summer there...in the future I foresee us both spending a portion of the year in our retirement there as well as it being a draw so to speak for kids in the future to bring us together when they have busy lives of their own.
Outside of the summer, extended family know its there for their use as do close friends.

I hear you about living our lives - investigating this job share is the first step in possibly starting too dial back a bit.
Me personally, no I'll most likely continue the slog with an eye on 55 moving to a 3 day work week and 58/60 as a stepping away point but if the home life was easier by the Mrs being around more, it would most certainly make my overall life easier - I'm just quite conscious of my lack of knowledge around public sector ramifications to such a move.
thanks
 
pocoloco said:
- Rental property – Currently €Zero monthly income as I give same to my parents - €120K Value, no mortgage
Click to expand...

I don't know why you say you have no income.

You own a property.

You have a rental income.

You must declare this and pay income tax on it.


What you do with the proceeds is completely separate.

If you give your parents €500 a month, you might as well say it's coming from your salary or from your savings.
 
pocoloco said:
- Shareholding – currently hold a shareholding with employer presently worth approx. €225K - this would fluctuate as I own a % shareholding.
Click to expand...

If this is realisable, then this is a better long term investment for your kids.

Brendan
 
You have a net worth of over 1 million euro in your early forties, good combined pension provision (especially teachers pension) so you really shouldn't be wondering about whether your wife can job share or not. Her pension is well funded and any gap in defined benefit scheme through job sharing will be covered by her AVCs.

Trying to avoid cliches but honestly there is more to life than money. You have plenty of money so make life more comfortable for yourself as previous posters have said.
 
From what I can see, if what you really need is more help at home then you can easily afford to pay for it. Whether that's done by one or other or both of you working shorter hours, or hiring someone, you can afford it.

Your children will grow up surprisingly quickly; whilst life might be hectic now it won't always be that way.
 
pocoloco said:
Site is a long term speculative investment, I believe it will be worth multiples of its current value in 15/20 years and in the back of my head I have it earmarked for the kids when they are no longer kids and will give them a bit of a start be it weddings, deposit etc etc
Click to expand...

15/20 years time?!!! If I had spent €65,000 on the S&P 500 20 years ago, it would be worth €225,500 today. You are much better off investing that money in large global companies that will grow than taking a punt on a piece of land. If it is zoned agricultural, you really are taking a punt that it will be rezoned at some stage but it may not too.
 
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