Moneymakeover Mid 44's, would appreciate advice?

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stayorgo

Registered User
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Hi All

I'm 44 and my husband is almost 44. We have no private pensions but have recently been auto enrolled in the national scheme. We are mortgage and debt free except for a car PCP. We recently sold a property and with everything paid (debts, CGT, home improvements) we have approx €70,000 left. We have 2 kids aged 13 and 9. I would appreciate some advice for this money. We need to set up private pensions, maybe invest, have kids savings, an emergency fund ect???? I'm afraid to make mistakes so the money is just sitting there. We are both PAYE workers on €33,000 gross each per year, quiet small earnings. I would appreciate your thoughts on how you would divide up the money if you were in my position. Many thanks everyone
 
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It can be difficult, but please try to use a meaningful title in your thread For example "27 year old with mortgage arrears". You will get a much better and much more coherent answer if you give as much information as possible in your first post. For example, if you give your mortgage rate, it...
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Apologies Clubman, I've filled in the info below

Personal details

Your age: 44
Your spouse's age: 43
Partner's age if not married:

Number and age of children: 2 kids aged 13 and 9


Income and expenditure
Annual gross income from employment or profession: €33,000
Annual gross income of spouse/partner: €33,000

Monthly take-home pay: €4152

Type of employment - e.g. Employee
Employer type: e.g. private company.

In general are you:
(a) spending more than you earn, or



Summary of Assets and Liabilities
Family home value: €300,000-€350,000
Mortgage on family home:0
Net equity:€300,000-€350,000

Cash:
Defined Contribution pension fund: none
Company shares : none
Buy to Let Property value: none
Buy to let Mortgage: none

Total net assets:


Family home mortgage information
Lender not applicable
Interest rate
Type of interest rate: tracker, variable, fixed.
If fixed, what is the term remaining of the fixed rate?
If tracker, what is the margin e.g. ECB + 1%

Remaining term: (Original term is not relevant)
Monthly repayment:

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?

Pension information

Value of pension fund: 0

Buy to let properties
Value: not applicable
Rental income per year:
Rough annual expenses other than mortgage interest :
Lender
Interest rate
If fixed, what is the term remaining of the fixed rate?

Other savings and investments: 0


Other information which might be relevant

Life insurance: both our lives are insured for approx €150,000 each and we have critical illness insurance on specific illness's. We have no income protection


What specific question do you have or what issues are of concern to you?
We recently sold a property and with everything paid (debts, CGT, home improvements) we have approx €70,000 left. I would appreciate some advice for this money. We need to set up private pensions, maybe invest, have kids savings, an emergency fund ect???? I would appreciate your thoughts on how you would divide up the money if you were in my position. Many thanks everyone
 
Did you also clear the mortgage on the primary residence after the sale of the other property?
If so, does that free up payments that had been going to service the primary residence mortgage.....which is now cleared?
 
Thanks Uafasach there is no mortgage on the primary residence. The only debt we have now is a car PCP.
 
Hi stayorgo,

I think it would be helpful if we could get an idea of spending and ability to put away money before anyone can make a suggestion as to next steps. Given you both are on the standard rate of tax the usual suggestion of making pension contributions is a little more marginal . In the first case, I would suggest building up a back of up say 3-6 months of expenses. You could use the previous mortgage payment to do this or perhaps use some part of your cash to do so. I'd put it in a high yield account like you can get in raisin or trade republic. Happy to tease it out further once you have had a chat to review.

However, you are in a strong position given that you have no real debt apart from the PCP. Have you thought about how to finance the balloon payment at the end?

Best,
Opus 2018
 
You have children reaching end of school age in about 5/6 and 8/9 years time. Where you live are there many options for what they might do after school, and what financial support they might need for that? Obviously very early days for them but if for eg there are no third level institutions within commuting distance so if they attend college away from home you would have to pay rent or if you might need to finance a car for them, have you mapped out how that might be financed?
 
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