Mortgage cleared, now what?

Defacto

Registered User
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Personal details

Age: 43

Partner's age: 42

Number and age of children: 0. And we will not be having any.

Income and expenditure

  • Annual gross income: €50k
  • Annual gross income of partner: €21k
  • Monthly take-home pay €4,200 - Jointly assessed.
Type of employment: both private sector PAYE

In general :

Summary of Assets and Liabilities
  • Family home worth €225,000. No mortgage.. We made our final payment last week!! We chucked everything we had at the mortgage and overpaid it from day one. Originally a 15 year term and we got rid of it in 7.5 years.
  • Emergency cash of €3,000-sitting in the credit union earning 0%.
  • Crypto: €2,500
  • Car valued at €20,000 and fully paid for. We both live a 30 second walk to work.
  • Other borrowings – none

Do you pay off your full credit card balance each month? Yes

Other savings and investments: None. See above..

Do you have a pension scheme? Yes
Me: Buy out Bond from previous employment. Current value €14,800 invested with Zurich in the Top Tech 100 fund.

Defined Benefit Pension from previous employment: €6,000 per annum

Current employment (4 years): Defined Contribution fund with Zurich (Prisma 5):
Current value c€45,000. 10% employer contributions, 5% employee contributions.

I also make AVC’s of €125 per week. I’ll be increasing this slightly to max it out to 25% of salary.

Death in service = 4 times salary.

Partner: PRSA with BoI (All equity fund)
Monthly contributions €264. Indexed linked. Current value €15,000.

Insurance Life cover:
Re: Mortgage: €115,000

Joint Life cover €250,000

What specific question do you have or what issues are of concern to you?

Now that we are mortgage free, besides maxing out our pensions, where else can we put our money to make it work for us.

I think there scope to increase my partners PRSA contributions to €400p/m.

I was considering buying Berkshire B stock every month on Degiro or else accessing the Vanguard Global Stock Index via Standard Life. My understanding is that Standard Life funds can only be accessed via a broker. Can I get this on an execution basis with a one off fee or is paying trail commission inevitable. This will be a long term investment 15-20 years.

Should I just go the ETF route and deal with the headache of deemed disposal every 8 years or should I let the insurance company deal with that and pay them fees for the privilege?

Also, are we over insured? Should I cancel the Mortgage policy now that it’s cleared?

Thanks

D
 
You should max out your partners avc, i.e. pay for everything for her so she can contribute her funds so you are both maxing out your avcs/pension.
Build up emergency fund buffer.

Enjoy yourselves, you are doing great.
 
Is there anything you need to do the house, insulation upgrades etc that you could fund over the next couple of years. In essence, is this the "forever" home and what do you need to do to it

Agree with previous poster, build up your emergency fund
 
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