I posted on another sub-thread re building an investment portfolio but was advised to bring my query here.
I suppose things have gone full circle as I first posted on the money makeover forum to get advice on selling a London property to fund a purchase here in Ireland! Fast forward to today and we now own a home that is suitable for our growing family, and are very comfortable that we made the right decision. We were certainly well informed by those on this forum and I'm grateful for that advice. So I thought I'd go back to the well.....
I hoped to get advice based upon our current situation and my desire to build a liquid investment portfolio for capital growth. Having just taken out a 7yr mortgage with Avant, we plan to make the 10% overpayments permitted every year. But we're also fortunate to have additional capital that we can put to work once we've done this.
I thought about creating a regular savings account for my son that we would pay into monthly which would be directly invested into a broad Global Equity index. But I would also like to build a portfolio for my wife and I.
In summary, I suppose my goals are as follows:
-Overpay mortgage by 10% ever year and have cash balance at end of term to clear it in 7yrs
-Save for my sons future. I think regular savings into a broad equity market would be the best course here
-In addition to my pension I'd like to put some of the extra capital we're fortunate to have to work for us. I'm conscious of tax treatment of ETFs, Shares, Unit Trusts etc.
Input on how best to proceed would be hugely appreciated. Do the 3 goals I have laid out above make sense? Should I adjust or is there anything else we could be doing? I am competent with regards to investment markets, but am also aware of the tough tax treatment/ extremely penal investment here in Ireland- I'd like to avoid pitfalls.
Thanks in advance.
Personal details
Age: 36
Spouse’s/Partner's age: 36
Number and age of children: 1 child, 6 months old
Income and expenditure
Annual gross income from employment or profession: Total comp of EUR 322K (EUR125k basic salary/ EUR197K bonus)
Annual gross income of spouse: Has taken some time out but will return to work next month at EUR60K
Monthly take-home pay: EUR7,500
Type of employment: Private sector
In general are you:
(b) saving? 2k per month out of my salary. Save the bulk of my bonuses.
Summary of Assets and Liabilities
Family home worth €1.15k with a €600k mortgage
Cash of €75k
Defined Contribution pension fund: €300k. I max my AVC & company match. Currently with Irish Life and in the MAPS range but looking to move provider as I don't think they offer value for money or optionality
Family home mortgage information
Lender: Avant
Interest rate: 1.95%
If fixed, what is the term remaining of the fixed rate? 7yrs
Other borrowings – car loans/personal loans etc
Do you pay off your full credit card balance each month? Yes
If not, what is the balance on your credit card? N/A
EUR500pm car loan. Planning to clear this soon.
Other information which might be relevant
Life insurance: 4x salary provided by my company
Have mortgage protection insurance in place, and contents cover as required by mortgage lender