High Hopes 75
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- 3
Age: 43
Spouse’s/Partner's age: 45
Annual gross income from employment or profession: €67,000
Annual gross income of spouse: €39,000
Monthly take-home pay: €5,820
Type of employment: Self – private sector, Spouse – public sector
In general are you:
Just about breaking even on a whole.
Rough estimate of value of home: €400,000
Amount outstanding on your mortgage: €92,000, monthly repayment €1,000
What interest rate are you paying? Tracker 1.25%, approx. 9 years left.
Other borrowings – car loans/personal loans etc
Home improvement loan (APR 8.5%) - €6,500, monthly repayment €400
Car loan (APR 7.7%) - €15,000, monthly repayment €450
Do you pay off your full credit card balance each month? Usually, but still has balance since Christmas
If not, what is the balance on your credit card? €1,300
Savings and investments:
No savings at present – used small savings together with car loan to replace car following emergency situation.
Do you have a pension scheme? Yes
Self – 1.5 years in current job. Pay 8% of salary and employer pays 12% of salary into scheme. Awaiting annual statement.
Spouse – 1 year in current job. Pays pension levy.
Neither of us had pension before that.
Do you own any investment or other property?
Spouse has investment property co-owned with family member.
Rough estimate of value of home: €180,000
Amount outstanding on your mortgage: €57,000, monthly repayment €750
What interest rate are you paying? Tracker 1.25%, approx. 7 years left.
Rental income €600 p.m. with long-standing (excellent) tenants
Ages of children: 7, 10, 12
Life insurance: Three policies - €165k, €100k, €120k (first one linked to home mortgage). We both have death in service benefit through work. Self – 8 times salary while children are minors (4 times salary after). Spouse – usual public sector cover of 1.5 times salary). Both have benefit of illness cover through work also.
What specific question do you have or what issues are of concern to you?
We never seem to be able to build up any decent level of savings. We don't have flash cars, a trophy house, or much in the way of socialising. But we spend approx. €7k per annum on a family holiday. Last year was a bumper year for travel because we wanted to celebrate having steady work and income, so in total €12k was spent on holidays and trips abroad.
Building up some savings again is a priority once credit card bill is cleared. Will do this by setting up a monthly standing order for pay day to save €500 per month. Also, will stop using child benefit to cover emergencies and start saving it towards college expenses.
However the big question is what to do with a lump sum that’s hopefully coming our way in the next few months. Spouse’s investment property is likely to be sold as tenants have come into an inheritance and want to buy out as they are very settled there. Spouse’s share before CGT will be €80,000, but his tax bill won’t exceed €4k (based on very little “gain” on what they bought the house for originally). Looking for some recommendations on what is sensible to do with the €76k. We want to clear both loans, but after that we’re not sure. Might re-invest another €20k into an investment property with sibling again? Or would be better paying down our mortgage?
Spouse’s/Partner's age: 45
Annual gross income from employment or profession: €67,000
Annual gross income of spouse: €39,000
Monthly take-home pay: €5,820
Type of employment: Self – private sector, Spouse – public sector
In general are you:
Just about breaking even on a whole.
Rough estimate of value of home: €400,000
Amount outstanding on your mortgage: €92,000, monthly repayment €1,000
What interest rate are you paying? Tracker 1.25%, approx. 9 years left.
Other borrowings – car loans/personal loans etc
Home improvement loan (APR 8.5%) - €6,500, monthly repayment €400
Car loan (APR 7.7%) - €15,000, monthly repayment €450
Do you pay off your full credit card balance each month? Usually, but still has balance since Christmas
If not, what is the balance on your credit card? €1,300
Savings and investments:
No savings at present – used small savings together with car loan to replace car following emergency situation.
Do you have a pension scheme? Yes
Self – 1.5 years in current job. Pay 8% of salary and employer pays 12% of salary into scheme. Awaiting annual statement.
Spouse – 1 year in current job. Pays pension levy.
Neither of us had pension before that.
Do you own any investment or other property?
Spouse has investment property co-owned with family member.
Rough estimate of value of home: €180,000
Amount outstanding on your mortgage: €57,000, monthly repayment €750
What interest rate are you paying? Tracker 1.25%, approx. 7 years left.
Rental income €600 p.m. with long-standing (excellent) tenants
Ages of children: 7, 10, 12
Life insurance: Three policies - €165k, €100k, €120k (first one linked to home mortgage). We both have death in service benefit through work. Self – 8 times salary while children are minors (4 times salary after). Spouse – usual public sector cover of 1.5 times salary). Both have benefit of illness cover through work also.
What specific question do you have or what issues are of concern to you?
We never seem to be able to build up any decent level of savings. We don't have flash cars, a trophy house, or much in the way of socialising. But we spend approx. €7k per annum on a family holiday. Last year was a bumper year for travel because we wanted to celebrate having steady work and income, so in total €12k was spent on holidays and trips abroad.
Building up some savings again is a priority once credit card bill is cleared. Will do this by setting up a monthly standing order for pay day to save €500 per month. Also, will stop using child benefit to cover emergencies and start saving it towards college expenses.
However the big question is what to do with a lump sum that’s hopefully coming our way in the next few months. Spouse’s investment property is likely to be sold as tenants have come into an inheritance and want to buy out as they are very settled there. Spouse’s share before CGT will be €80,000, but his tax bill won’t exceed €4k (based on very little “gain” on what they bought the house for originally). Looking for some recommendations on what is sensible to do with the €76k. We want to clear both loans, but after that we’re not sure. Might re-invest another €20k into an investment property with sibling again? Or would be better paying down our mortgage?