warnerbottom
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This sounds like a lot for a family of four. Do you really need the bells and whistles?Health insurance (Laya) 500 per month
No, it’s from a combination of; 15 years savings, 2 large assignment related bonuses/overseas living allowances, sale of some shares from a previous company and wife’s redundancy payment from her previous company.Did you inherit the 270k?
Thanks for pointing this out. It’s a very good observation. I was just looking at this on another post and it definitely looks like we could save a good bit there.This sounds like a lot for a family of four. Do you really need the bells and whistles?
Otherwise I’d echo advice above. Pay off mortgage from cash. Your income is great so maximise tax-relieved pension contributions also for spouse.
Do you know if wife can benefit from tax relief at the higher level based on us having joint assessed married status?This sounds like a lot for a family of four. Do you really need the bells and whistles?
Otherwise I’d echo advice above. Pay off mortgage from cash. Your income is great so maximise tax-relieved pension contributions also for spouse.
Thank you for the reply. I really appreciate you taking the time.First, congrats -you have obviously done well to end up on your stated salary!
Few things.
1) Pension: You mention pot value but what is the monthly contribution & what does the employer offer? These in a way are more important pieces of information at this stage. Given your excellent joint income plus equity in your home I would regard you as in a great spot, but the pension pot is relatively small considering, and needs some focus in my opinion.
- Did you work in Ireland in 2023, if so put some of the cash pile into your 2023 pension contribution - must be done by October revenue deadline. This will be tax effective.
- Your wife could also retrospectively pay up to her maximum for 2023
- Increase your contributions substantially.
2) Budget & intentional lifestyle: On €200+ per annum you are entitled to enjoy life, but lifestyle creep should be an intentional choice. I get the sense that post home move the outgoings are a bit up in the air, and you are not really sure what your disposable steady state income is? I just went through a phase like this after moving too. Your biggest barrier to effective money management is burning cash unintentionally - given your home and income are sorted. Spend 2 hours doing a list of your expenses with the wife, a simple annual budget/statement, just the transparency alone will likely drive awareness if there is any unwanted leaks.... it will also see how you cut your cloth- important to understand if you have one eye on exiting your job.
3) University: This shouldn't be too much of a burden on you even if you had no savings. Even if you took a haircut on pay in a new job. What do you expect it to cost, you could put some money into a savings account for this - if it is a big concern, but I would not put aside too much, as your monthly income closer to the time can be quickly accumulated if a spike is in sight.
4) Investments: Your job is intense, messing around with property or similar assets is probably not an option, unless the option is to invest in a business that you know something about and this becomes the exit that you want in 5 years....otherwise I'd just stick as much as possible into your pension and the rest into an index fund. Paying off the mortgage is an option as Sarenco suggest - but might need to check the terms of the fixed mortgage, some of these are becoming a pain to pay off surplus unless you pay the entire amount. If you pump up your pension contributions that will limit the cash piling up for a while too.
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