Moneymakeover Moved back to Ireland in 2024, 1 child in creche now (twins joining next year) - looking for a advice on retirement and planning

[babylon123]

Hi all, we moved back to Ireland in 2024 (few years in the US and Canada) and are trying to get a better handle on managing the next couple of years with 3 children in creche at the same time (€1,500 per child before the subsidy), plus a temporary move to a single income. Any advice would be greatly appreciated especially with our retirement and investment planning.

Personal details
Your age: 35
Your spouse's age: 35
Number and age of children: 3 children (2 year old, new born twins)

Income and expenditure
Annual gross income from employment or profession: €172k + up to 20% bonus/
Annual gross income of spouse/partner: Currently not working; expected to return 2028 at hopefully €80k
Monthly take-home pay: €6,852 (net income after pension, VHI)
Type of employment: Private sector.

In general are you: We would both would have been good 'savers' before having children. We do put money away each month into ETF and stocks.

Summary of Assets and Liabilities
Family home value: €1.2M
Mortgage on family home: Approx €575k
Net equity: Approx €625k

Cash: Combined €38K. My partner saved €20K while at her last job to help us manage her being out of work until 2028.
Defined Contribution pension fund: See below.
Company shares : No
Buy to Let Property value: No
Buy to let Mortgage: No

Family home mortgage information
Lender: AIB
Interest rate: 3.55%. Fixed until 2028.
Remaining term: (Original term is not relevant): 23 years (unable to overpay without paying a penalty).
Monthly repayment: €3,050.

Other borrowings – car loans/personal loans etc: No
Do you pay off your full credit card balance each month? Yes

Pension information:
We lived abroad until 2024, so we have a combination of Canadian and Irish pensions. I started my Irish pension in July 2024 and my partner's started in August 2025.
Value of pension fund:
Myself:
Canada & US Pension: €184K
Ireland Pension: €77K (adding approx €2,000 to it per month + 5% from my employer).

Partner:
Canada & US Pension: €97K
Ireland Pension: €4K (no longer contributing, on mat leave)

Investment Stocks:
IBKR Portfolio: €44K (ETF and individual stocks; started August 2024, contributing monthly)
Trade Republic: €4K (ETF - set up for our first child to help us get into the habit of saving)
Crypto: €1.5K (BTC - likely selling later this year)

Other information which might be relevant
Life insurance: In the process of securing life insurance (as my employer no longer offers it).
Mortgage Insurance: €58 per month through New Ireland
Income Protection: €175 per month through Zurich.

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

1. Emergency Savings: Since moving to a single income for the next year or so, our mortgage now takes up close to 50% of our net income. Should we focus on building up more of a cash buffer, or can our IBKR portfolio reasonably be considered part of our emergency fund? We had a year of a single income when my partner was on leave with our first child, but that didn't include creche fees.

2. Pension: We have pensions in Canada and Ireland. The Canadian pension is in a low-cost world ETF, and we are thinking of leaving it there. Does that make sense? There are risks with currency fluctuations so if anyone has advice, that would be great. We are looking to make a AVC lump sum this year for my partner.

3. Children's Savings: We're currently contributing to a Trade Republic ETF account for our children and have also looked at options like Zurich but aren't sure it's the right fit for us. We like having the account in our own name for flexibility, but we're missing out on the gift exemption that Zurich's offer. Unsure on this one but we think our current setup is the better option for us. Our plan here is to put a small bit in per year with gifts during birthdays, Christmas, etc. It would be great to have a pot that we can use for education (if needed) and if not, we could look to gift it to them when they are older.

4. Anything else we should be looking at? We do a decent job at reviewing our spending and bills (switching providers when needed) and we try to save a set amount per month and then enjoy the rest.

Thanks,

 

[Bronte]

Income 6852 (is the pension already taken from salary so you actually get 6852 monthly?)
Mortgage 3050
Investment stocks? How much are you paying into those
Is there creche fees, not clear from your post? 1500 X 3 = 4500, surely not?

Anything else we should be looking at? We do a decent job at reviewing our spending and bills (switching providers when needed) and we try to save a set amount per month and then enjoy the rest.

Cannot figure out from your post your outgoings ....

 

[balders93]

The Canadian pension is in a low-cost world ETF, and we are thinking of leaving it there. Does that make sense? There are risks with currency fluctuations

There are not risks with currency fluctuations in an all world etf. Regardless of the reporting currency for it, the number of units held will remain the same. If CAD weakens, the fund is worth more CAD to equal out the weakening of the reporting currency and vice versa, but the underlying value in terms of stocks held is the same.

 

[balders93]

Should we focus on building up more of a cash buffer, or can our IBKR portfolio reasonably be considered part of our emergency fund?

Include anything liquidable as potential emergency funds, and liquidate them as needed in an emergency.

 

[babylon123]

Thanks for the comments.

@Bronte -

• 6852 - salary is net (updated the post), this is after pension, VHI, etc. This is our income for the next 18 months until my partner enters back into work.
• Investment Stocks - This varies, it can be between 300 - 900 per month. The higher end was when my partner was in work, lower end when we were previously down to a single income. I also contributed a portion of bonus into it last year which helped. This number will probably be reduced over the next few months with the new additions but we hope to be able to still contribute something to keep the habit of investing continuing.
• Creche is 1,500 without the subsidy, with the subsidy the monthly cost to us is approx 1,200. We will receive a 5% discount for siblings. We are on the waitlist for a few other creches in the area that our cheaper so hopefully we can reduce the costs here. Currently paying for one child in creche. This will go to three children in creche/Montessori from summer 2027.
• Spending - That is a good point, we haven't reviewed our spending since our family expanded (probably due to head in the sand) but we will do that this weekend.

@balders93 - Got it, I was more thinking that the Canadian pension is in CAD and when I withdraw it in the future, I would convert it to Euro.

 

[balders93]

I was more thinking that the Canadian pension is in CAD and when I withdraw it in the future, I would convert it to Euro.

Yes, still no currency risk on all world ETF for this. After withdrawing and exchanging, you will end up with the Euro value of the underlying stocks. The relative value of CAD to Euro doesn't matter.

Currency risk would be holding CAD denominated bonds and then seeing movement against CAD which would leave you materially worse in Euro terms than where you started.

 

[Bronte]

Babylon in June what was your expenditure? Mortgage, life insurance, protection insurance, crèche, food, utilities, grooming, personal allowance, car, savings, investments etc everything! Need to see where your money is going…

You’re paying for a crèche for one child while your wife is at home with twins, and this will be the case until 2028? Another 1.5 years? And in 2028 3 kids in crèche? What year will 2 year old start school,

Congratulations on the twins, it must be full on at home! And probably at that salary a stressful never off job.

No comment from me on pensions, let experts on here do that.

This is the most difficult time financially, in general. There is a bit of give in the mortgage term. If needed. Everything is very dependant on one large salary.

The 20k saved for maternity - That figure pays one child at crèche for about 18 months. And nothing else.

How much would a salary of 80k net your wife?

 

[ClubMan]

Babylon in June what was your expenditure? Mortgage, life insurance, protection insurance, crèche, food, utilities, grooming, personal allowance, car, savings, investments etc everything! Need to see where your money is going…

This really needs to be looked at on an annual rather than monthly basis in order to get useful figures in my opinion.

Moneymakeover - Household Budgeting Comparisons?

Not sure if the correct place... Life has been in (financial) flux for the last 4 years (house purchased, wedding, new baby, mat leave) but 2025 has brought some stability so I have had a look at our income and expenses. I track both pretty well. We both have decent incomes, don't live...

www.askaboutmoney.com

 

[Bronte]

This really needs to be looked at on an annual rather than monthly basis in order to get useful figures in my opinion.

I agree, but if posters looking for advice don't supply figures it is sometimes easier to look for the monthly and just do the calculations. Right now we have zero idea which money is going where for many items particularly savings/investments !

Most people might not have the annual, but they surely know what they spent last month !!

 

[ClubMan]

Most people might not have the annual

The link that I posted above shows how most people can get the annual figures for about an hour's work.

 

[Bronte]

The link that I posted above shows how most people can get the annual figures for about an hour's work.

Maybe there should be a link in the Money Makeover master thread ! It amazes me with posters throwing all kinds of figures in without putting in proper amounts and we are supposed to figure it out ....

Like this: (looking at you babylon)

This varies, it can be between 300 - 900 per month.

That's either 3600 or 10800 ...


No figures at all here:

Investment Stocks:
IBKR Portfolio: €44K (ETF and individual stocks; started August 2024, contributing monthly)
Trade Republic: €4K (ETF - set up for our first child to help us get into the habit of saving)
Crypto: €1.5K (BTC - likely selling later this year)

Right now the total expenditure we have is 3050 + 1500 + 58 + 175 = 4783. From income of 6852 gives him 2069 for everything else. Which is 477 a week for groceries, utilities, car(s), holidays, trips, repairs, clothing, nappies, unforeseen etc....

 

[geraldo2001]

Looking at the figures provided, congrats on being in a very strong position financially with a net worth of over €1m at age 35.

I put some of the numbers into a balance sheet analysis here: https://planeir.ie/app/session.html...k=npSSQ4DgrEndilr5EVGF_y5Bw0ViWbwjl0_dcm3cP3M

The main thing that stood out to me was liquidity. With a single income at the minute and three young children, I'd be more focused on building cash reserves than increasing investment contributions. Assuming spending is around €100k per year (I'm getting just over 80k from the stated expenses and adding a buffer on top of that for the expenses were missing), I'd be aiming for an emergency fund of roughly €50k.

I wouldn't count the IBKR portfolio as part of that emergency fund. It's liquid, but it's still invested. If markets fall sharply at the same time you need access to the money, you're forced to sell at exactly the wrong time.

On the education side, I'd focus more on building the pot than deciding whose name it's in. With a 15+ year time horizon, investing makes sense, but if the goal is simply funding third-level education, the assets can remain in your own name and be used on your children's education without Revenue considering it a "gift".