Age:
50
Spouse’s/Partner's age:
52
Annual gross income from employment or profession:
E137,000
Annual gross income spouse:
E40,000
Type of employment:
Public sector (higher income) ;
private sector but very secure (lower income)
Expenditure pattern:
We are both careful - but seem to have little left each month
Rough estimate of value of home
E750,000
Mortgage on home
E260,000
Mortgage provider:
BOI
Type of mortgage: Tracker, interest only, fixed rate
Fixed rate
Interest rate
3% fixed rate for 5 years - needs to be reviewed next July 2027. Mortgage has 10 years remaining after that (2037) - note repayments are high - E2300
Other borrowings – car loans/personal loans etc
Wife car loan - 0% interest - 299 per month -
Do you pay off your full credit card balance each month?
Yes
Savings and investments:
E8,000 savings. .
Do you have a pension scheme?
HSE pension from 2014 - higher income. Plus a deferred DB pension from previous employer worth 17k pa on retirement at 65
Her company pay E437pm into a pension.
Do you own any investment or other property?
No.
Ages of children:
18 and 16
Life insurance:
Yes.
What specific question do you have or what issues are of concern to you?
With any spare cash we have what is our best option:
a) do an AVC for higher income to maximise the tax free pension lump sum. an avc of 230e take home pay per month would bring this very close to 200k at 66
b) start adding additional contributions to lower income pension. note this person is taxed at 20%
c) continue to build our emergency fund - which is at 3 months essential expenses now - query go to 6 months?
d) plan for next mortage term and should we try reduce the term from 10 years to 9 years or keep it to 2037 and use any extra funds to maximise pension tax benefits
e) and college on the horizon for 2 children - we have sinking funds set up for both but need to keep topping these up
f) savings are in monzo - we are looking at MoCo as an option too
sincere thanks for reading this far and we would really appreciate any guidance/advice
thanks Brendan for the opportunity to post to moneycoach
50
Spouse’s/Partner's age:
52
Annual gross income from employment or profession:
E137,000
Annual gross income spouse:
E40,000
Type of employment:
Public sector (higher income) ;
private sector but very secure (lower income)
Expenditure pattern:
We are both careful - but seem to have little left each month
Rough estimate of value of home
E750,000
Mortgage on home
E260,000
Mortgage provider:
BOI
Type of mortgage: Tracker, interest only, fixed rate
Fixed rate
Interest rate
3% fixed rate for 5 years - needs to be reviewed next July 2027. Mortgage has 10 years remaining after that (2037) - note repayments are high - E2300
Other borrowings – car loans/personal loans etc
Wife car loan - 0% interest - 299 per month -
Do you pay off your full credit card balance each month?
Yes
Savings and investments:
E8,000 savings. .
Do you have a pension scheme?
HSE pension from 2014 - higher income. Plus a deferred DB pension from previous employer worth 17k pa on retirement at 65
Her company pay E437pm into a pension.
Do you own any investment or other property?
No.
Ages of children:
18 and 16
Life insurance:
Yes.
What specific question do you have or what issues are of concern to you?
With any spare cash we have what is our best option:
a) do an AVC for higher income to maximise the tax free pension lump sum. an avc of 230e take home pay per month would bring this very close to 200k at 66
b) start adding additional contributions to lower income pension. note this person is taxed at 20%
c) continue to build our emergency fund - which is at 3 months essential expenses now - query go to 6 months?
d) plan for next mortage term and should we try reduce the term from 10 years to 9 years or keep it to 2037 and use any extra funds to maximise pension tax benefits
e) and college on the horizon for 2 children - we have sinking funds set up for both but need to keep topping these up
f) savings are in monzo - we are looking at MoCo as an option too
sincere thanks for reading this far and we would really appreciate any guidance/advice
thanks Brendan for the opportunity to post to moneycoach
