Age: 37
Spouse's age: 46
Number and age of children: 2 children, age 3 and age 5
Two questions:
1. What to do with lump sum 50k - thinking pay off mortgage best option?
2. Have been saving the kids child benefit into credit union accounts for them (earning no interest). Approx 9k (5yo) and 5k (3yo) accumulated to date. Would like to put their money to better use - I was looking into State Savings 10 year (22%) or a Bare Trust (invested some way I assume - don't know much about this yet?). Wondering if these are best options? I am thinking this money will be for things like first car, college money, house deposit maybe eventually?
I have seen some posts saying we would be better off overpaying our mortgage now and having more money available to us when kids are 21 (as lower mortgage etc). Should we be doing this instead of saving for kids?
I sort of like the idea of having amounts put aside for them. Also we are utilising the 3k tax free gift amount each year instead of gifting bigger amount down the road.
Income and expenditure
Annual gross income from employment or profession: 110k
Annual gross income of spouse/partner: 90k
(Both employed, have job stability)
Monthly take-home pay: 9000 ish I think (between us) + bonuses each March approx 15k after tax total.
In general are you:
(a) spending more than you earn, or
(b) saving?
Saving, but only really starting out again (after unpaid mat leave, house renovations etc, over last 5 years or so).
Summary of Assets and Liabilities
Family home value: 550k
Mortgage on family home: 260k
Net equity: 290k
Defined Contribution pension fund: Me - Employee 5% & Employer 12% / Spouse - Employee 5% & Employer 5% (not sure of current balances)
Company shares : 20k
Family home mortgage information
Lender - PTSB
Interest rate - 3%
Type of interest rate - FIXED - 5.5 years remaining
Remaining term: (Original term is not relevant) - 22 years
Monthly repayment: 1600
Other borrowings – car loans/personal loans etc
Do you pay off your full credit card balance each month? Yes
No other loans
Life insurance: - we have adequate life insurance / income protection etc
Spouse's age: 46
Number and age of children: 2 children, age 3 and age 5
Two questions:
1. What to do with lump sum 50k - thinking pay off mortgage best option?
2. Have been saving the kids child benefit into credit union accounts for them (earning no interest). Approx 9k (5yo) and 5k (3yo) accumulated to date. Would like to put their money to better use - I was looking into State Savings 10 year (22%) or a Bare Trust (invested some way I assume - don't know much about this yet?). Wondering if these are best options? I am thinking this money will be for things like first car, college money, house deposit maybe eventually?
I have seen some posts saying we would be better off overpaying our mortgage now and having more money available to us when kids are 21 (as lower mortgage etc). Should we be doing this instead of saving for kids?
I sort of like the idea of having amounts put aside for them. Also we are utilising the 3k tax free gift amount each year instead of gifting bigger amount down the road.
Income and expenditure
Annual gross income from employment or profession: 110k
Annual gross income of spouse/partner: 90k
(Both employed, have job stability)
Monthly take-home pay: 9000 ish I think (between us) + bonuses each March approx 15k after tax total.
In general are you:
(a) spending more than you earn, or
(b) saving?
Saving, but only really starting out again (after unpaid mat leave, house renovations etc, over last 5 years or so).
Summary of Assets and Liabilities
Family home value: 550k
Mortgage on family home: 260k
Net equity: 290k
Defined Contribution pension fund: Me - Employee 5% & Employer 12% / Spouse - Employee 5% & Employer 5% (not sure of current balances)
Company shares : 20k
Family home mortgage information
Lender - PTSB
Interest rate - 3%
Type of interest rate - FIXED - 5.5 years remaining
Remaining term: (Original term is not relevant) - 22 years
Monthly repayment: 1600
Other borrowings – car loans/personal loans etc
Do you pay off your full credit card balance each month? Yes
No other loans
Life insurance: - we have adequate life insurance / income protection etc