I am in the fortunate position of being in my late-30s, house now paid off and with € 350 000 in savings in the bank. I finished college, got a job straight after outside Ireland and got promoted a few times in the first few years. I have reached as far as I can go career wise right now, and do not expect big wage increases in the coming years. If I’m honest, I think I am paid a bit above the market rate but my job security is pretty good based on the specific line of work, length of time in the organisation and my network.
A few things helped: luck, growing up with parents who led a frugal life so my lifestyle never caught up with the income available (didn’t buy a big new car, job keeps me quite busy and have cheap hobbies, not very interested in too many material possessions such as expensive clothes etc.), and bought a more modest house than we could have afforded (probably a mistake to be risk averse at the time). My partner has a very good income, which contributes a lot towards a high overall savings rate and on the whole we lead a perfectly comfortable life.
While I may have saved lot, I have been bad at investing savings. I saw our first house (a townhouse) as an interim step and expected to one day would move into something bigger (and he been been saving towards that). Now that house prices have exploded over the past 5 years, which we are also benefitting from, it seems unreasonable to tie us to a big and long mortgage for something with two more rooms, with a nicer garden and a better address. While we can afford it, I am not sure we want to. Besides, our kid is almost 10 so another 7-8 years and he could be leaving home (with just the two of us left to enjoy a big house, it seems pointless).
I am contributing to a pension through by my employer. As the only surviving child, I may inherit the family house at some point in the future (house is old and somewhat run down, but the land it is built may have some value being inside a town boundary. I am aware of the tax consequences and Revenue probably getting a fair chunk).
I do not foresee any large expenses soon, except perhaps some substantial dental work I would like to have done. Investing in a good MBA could help me get past my career glass ceiling, but I don’t think even more hours in the office is something to aim for (no part time work / career break possibilities offered at my level).
That leaves me with the question of what to do with savings. Build a stock portfolio? Invest in a fund such as Fundsmith? I have doubts about investment property / becoming a landlord based on the risk (and everything I have been reading about that). I also know that anything could change from one day to the next so should avoid take anything for granted including health, job, etc .
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Age: Late 30s
Spouse’s/Partner's age: Late 30s
Monthly take-home pay: 8000, spouse about 5000 (not married, we try to split expenses for the most part), private health insurance and schooling is paid for by our employers
Type of employment: public sector (outside Ireland), spouse in private sector with substantially less job security but in a very demanded role with flexibility to work anywhere if she wanted
In general are you:
(a) spending more than you earn, or
(b) saving
Rough estimate of value of home: 750 000 (bought at around 400 000).
Amount outstanding on mortgage: 0
Other borrowings – car loans/personal loans etc: None
Do you pay off your full credit card balance each month? Yes
Savings and investments: 350 000 in the bank (partner has savings too, which I exclude from this discussion because she wants to use these soon to build a house for her parents to retire in)
Do you have a pension scheme? Yes, a defined benefit plan through my employer which would provide me with a good pension at retirement. In theory, I already have enough years to qualify for a minimum but decent pension (at the retirement age) even if I was to leave today. Conditions etc. can change so I am not counting on that in 25-30 years time. My partner is making standard state pension contributions but has no other pension scheme.
Do you own any investment or other property? No. I will probably inherit the family house (and I would say the land it is built on is worth something).
Ages of children: one child aged 9
Life insurance: Work has scheme which would provide my child with a substantial monthly allowance if I was to die (but my partner would not currently benefit since we are not married). My partner is not paying towards any life insurance.
What specific question do you have or what issues are of concern to you?
What do do with the savings to get them working for us, and in the medium/long-term reduce dependence on my job. I realise a lot about my comfortable life is dependant on my employer but also that there is more to life than work.
A few things helped: luck, growing up with parents who led a frugal life so my lifestyle never caught up with the income available (didn’t buy a big new car, job keeps me quite busy and have cheap hobbies, not very interested in too many material possessions such as expensive clothes etc.), and bought a more modest house than we could have afforded (probably a mistake to be risk averse at the time). My partner has a very good income, which contributes a lot towards a high overall savings rate and on the whole we lead a perfectly comfortable life.
While I may have saved lot, I have been bad at investing savings. I saw our first house (a townhouse) as an interim step and expected to one day would move into something bigger (and he been been saving towards that). Now that house prices have exploded over the past 5 years, which we are also benefitting from, it seems unreasonable to tie us to a big and long mortgage for something with two more rooms, with a nicer garden and a better address. While we can afford it, I am not sure we want to. Besides, our kid is almost 10 so another 7-8 years and he could be leaving home (with just the two of us left to enjoy a big house, it seems pointless).
I am contributing to a pension through by my employer. As the only surviving child, I may inherit the family house at some point in the future (house is old and somewhat run down, but the land it is built may have some value being inside a town boundary. I am aware of the tax consequences and Revenue probably getting a fair chunk).
I do not foresee any large expenses soon, except perhaps some substantial dental work I would like to have done. Investing in a good MBA could help me get past my career glass ceiling, but I don’t think even more hours in the office is something to aim for (no part time work / career break possibilities offered at my level).
That leaves me with the question of what to do with savings. Build a stock portfolio? Invest in a fund such as Fundsmith? I have doubts about investment property / becoming a landlord based on the risk (and everything I have been reading about that). I also know that anything could change from one day to the next so should avoid take anything for granted including health, job, etc .
--
Age: Late 30s
Spouse’s/Partner's age: Late 30s
Monthly take-home pay: 8000, spouse about 5000 (not married, we try to split expenses for the most part), private health insurance and schooling is paid for by our employers
Type of employment: public sector (outside Ireland), spouse in private sector with substantially less job security but in a very demanded role with flexibility to work anywhere if she wanted
In general are you:
(a) spending more than you earn, or
(b) saving
Rough estimate of value of home: 750 000 (bought at around 400 000).
Amount outstanding on mortgage: 0
Other borrowings – car loans/personal loans etc: None
Do you pay off your full credit card balance each month? Yes
Savings and investments: 350 000 in the bank (partner has savings too, which I exclude from this discussion because she wants to use these soon to build a house for her parents to retire in)
Do you have a pension scheme? Yes, a defined benefit plan through my employer which would provide me with a good pension at retirement. In theory, I already have enough years to qualify for a minimum but decent pension (at the retirement age) even if I was to leave today. Conditions etc. can change so I am not counting on that in 25-30 years time. My partner is making standard state pension contributions but has no other pension scheme.
Do you own any investment or other property? No. I will probably inherit the family house (and I would say the land it is built on is worth something).
Ages of children: one child aged 9
Life insurance: Work has scheme which would provide my child with a substantial monthly allowance if I was to die (but my partner would not currently benefit since we are not married). My partner is not paying towards any life insurance.
What specific question do you have or what issues are of concern to you?
What do do with the savings to get them working for us, and in the medium/long-term reduce dependence on my job. I realise a lot about my comfortable life is dependant on my employer but also that there is more to life than work.
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