Investment advice

markpb

Registered User
Messages
433
Age:
37
Spouse’s/Partner's age:
34

Annual gross income from employment or profession:
E92,000
Annual gross income spouse:
E78,000

Type of employment:
Both private sector employees

Expenditure pattern:
We both contribute to our pensions but apart from that we tend to spend most of what we earn each month (including larger expenses like holidays). We have about 4k in state savings from children’s allowance.

Rough estimate of value of home
E470,000
Mortgage on home
E333,000
Mortgage provider:
Ulster Bank
Type of mortgage:
Fixed for 3y @ 2.6%


Rough estimate of value of investment property
E230,000
Mortgage on investment property
E150,000
Mortgage provider:
Bank of Ireland
Type of mortgage:
Tracker @ 1.1%

The apartment makes a small cash profit month to month but leaves us with a tax bill of approx 5k each year.

Other borrowings – car loans/personal loans etc
None, we recently cleared our credit card debt

Do you pay off your full credit card balance each month?
Yes

Savings and investments:
No

Do you have a pension scheme?
Yes, I pay 5% and my company pays 5%. It’s currently valued at approx E150,000.
My wife has a similar pension but has only been contributing for a short while so the value is much lower.

Ages of children:
7, 4, 0

Life insurance:
Death in service as part of company pension
Life insurance attached to both mortgages

What specific question do you have or what issues are of concern to you?
We will soon be gaining between E170,000 and E200,000 and we’re unsure how to invest it. We both plan on putting some into our pensions to top then up and also to offset the tax on the investment property. After that, we’re not sure. I have a feeling that putting it all into our pensions would mean we’re don’t have access to it in 15-20 years when we could possibly have three children in college. We’re considering something like Irish Life MAPS.
 
Last edited:
We’re considering something like Irish Life MAPS.
Why?
There are fees & charges. Any gain is taxable (exit taxes).

You've a chunky mortgage. Why not pay it against that? 2.6% tax free, zero risk return. Big reduction in your contractual mortgage payments, freeing up cash flow for you when you need it for the kids later.
 
Age:
37
Spouse’s/Partner's age:
34

Annual gross income from employment or profession:
E92,000
Annual gross income spouse:
E78,000

Type of employment:
Both private sector employees

Expenditure pattern:
We both contribute to our pensions but apart from that we tend to spend most of what we earn each month (including larger expenses like holidays). We have about 4k in state savings from children’s allowance.

Rough estimate of value of home
E470,000
Mortgage on home
E333,000
Mortgage provider:
Ulster Bank
Type of mortgage:
Fixed for 3y @ 2.6%


Rough estimate of value of investment property
E230,000
Mortgage on investment property
E150,000
Mortgage provider:
Bank of Ireland
Type of mortgage:
Tracker @ 1.1%

The apartment makes a small cash profit month to month but leaves us with a tax bill of approx 5k each year.

Other borrowings – car loans/personal loans etc
None, we recently cleared our credit card debt

Do you pay off your full credit card balance each month?
Yes

Savings and investments:
No

Do you have a pension scheme?
Yes, I pay 5% and my company pays 5%. It’s currently valued at approx E150,000.
My wife has a similar pension but has only been contributing for a short while so the value is much lower.

Ages of children:
7, 4, 0

Life insurance:
Death in service as part of company pension
Life insurance attached to both mortgages

What specific question do you have or what issues are of concern to you?
We will soon be gaining between E170,000 and E200,000 and we’re unsure how to invest it. We both plan on putting some into our pensions to top then up and also to offset the tax on the investment property. After that, we’re not sure. I have a feeling that putting it all into our pensions would mean we’re don’t have access to it in 15-20 years when we could possibly have three children in college. We’re considering something like Irish Life MAPS.


Before considering any investment I would suggest you complete or try a money make over post.

After paying off your house loan I would think you may have not far off 1800euro per week for other outgoings?

For most that is excellent even taking in the fact you have two young children.
Trying to help you and be constructive I would suggest you take a close look at outgoings. They are heavy.
After sorting or taking a closer look where your hard earned cash is going then consider investments.
 
Back
Top