investluke
Registered User
- Messages
- 7
Age:
30
Spouse’s/Partner's age:
30
Annual gross income from employment or profession:
E80,000
Annual gross income spouse:
E35,800
Type of employment:
One private sector, one public sector (primary school teacher)
Expenditure pattern:
My spouse would have zero "sense" when it comes to financial matters, she leaves the entirety of it to me. She doesn't load up on credit card debt or anything like that, but she does not track expenditure or savings - does not even have online banking to check on current status.
For the past 18 months all of my savings were being put towards a wedding, now that that is out of the way I am waying up whether to put my excess income into investments or paying off mortgage early.
Rough estimate of value of home
E800,000
Mortgage on home
E282,000 - we bought in 2014 at bottom of market for below market value (purchased off family member)
Mortgage provider:
KBC
Type of mortgage: Tracker, interest only, fixed rate
Variable Interest Rate
Interest rate
3.75% (I have enquired and there are no penalties associated with paying off lump sum or increasing/decreasing amount to repay.)
Other borrowings – car loans/personal loans etc
None
Do you pay off your full credit card balance each month?
Neither of us currently use credit cards.
Savings and investments:
E15,000 savings. ~€6,000 in shares.
Do you have a pension scheme?
Spouse has her state teaching pension.
I pay nothing into a pension currently but company I work for is currently looking at setting up a pension which would have 5% employer contribution. However if I was to leave within two years of signing up for the pension and of my employers contribution is returned to them.
Do you own any investment or other property?
No.
Ages of children:
None but we are hopeful that this will change shortly
Life insurance:
Yes.
What specific question do you have or what issues are of concern to you?
I estimate that I have roughly €800 in "spare" income at the end of the month. As stated, this was previously going into saving for a wedding and I'm now considering what the best way to use this is.
My spouse currently has a standing order of €100 a month leaving her account to go to the credit union.
€15,000 currently in place from the wedding I regard as my 6 month buffer (this would allow us to live very comfortably if anything bad should happen to either of us.)
What worries me is that I could comfortably stay with my current employer for another 3-5 years, but would not advance within the organisation and also doubt I'd receive any pay increases in this time. I also fear this might impact future job opportunities, I also know that if I was to leave my current employer I would be taking a significant pay cut.
Also given that we are hoping to start a family soon, I realise that it makes sense to start financial planning towards this.
In terms of current options, I realise that I can start overpaying the mortgage. Currently our mortgage is due to be paid off in February '45.
If I increase the repayments by 625 per month, this can be paid off by May '33. Which sounds very nice indeed.
I don't think it's realistic that I'd be able to keep overpaying the mortgage to this level for the entirety of it, but was wondering if it best to overpay as much as I can while I have the money.
Does it make more sense to overpay the mortgage rather than max out pension contribution at this time? Or am I looking at this wrong.
Any advice would be much appreciated.
30
Spouse’s/Partner's age:
30
Annual gross income from employment or profession:
E80,000
Annual gross income spouse:
E35,800
Type of employment:
One private sector, one public sector (primary school teacher)
Expenditure pattern:
My spouse would have zero "sense" when it comes to financial matters, she leaves the entirety of it to me. She doesn't load up on credit card debt or anything like that, but she does not track expenditure or savings - does not even have online banking to check on current status.
For the past 18 months all of my savings were being put towards a wedding, now that that is out of the way I am waying up whether to put my excess income into investments or paying off mortgage early.
Rough estimate of value of home
E800,000
Mortgage on home
E282,000 - we bought in 2014 at bottom of market for below market value (purchased off family member)
Mortgage provider:
KBC
Type of mortgage: Tracker, interest only, fixed rate
Variable Interest Rate
Interest rate
3.75% (I have enquired and there are no penalties associated with paying off lump sum or increasing/decreasing amount to repay.)
Other borrowings – car loans/personal loans etc
None
Do you pay off your full credit card balance each month?
Neither of us currently use credit cards.
Savings and investments:
E15,000 savings. ~€6,000 in shares.
Do you have a pension scheme?
Spouse has her state teaching pension.
I pay nothing into a pension currently but company I work for is currently looking at setting up a pension which would have 5% employer contribution. However if I was to leave within two years of signing up for the pension and of my employers contribution is returned to them.
Do you own any investment or other property?
No.
Ages of children:
None but we are hopeful that this will change shortly
Life insurance:
Yes.
What specific question do you have or what issues are of concern to you?
I estimate that I have roughly €800 in "spare" income at the end of the month. As stated, this was previously going into saving for a wedding and I'm now considering what the best way to use this is.
My spouse currently has a standing order of €100 a month leaving her account to go to the credit union.
€15,000 currently in place from the wedding I regard as my 6 month buffer (this would allow us to live very comfortably if anything bad should happen to either of us.)
What worries me is that I could comfortably stay with my current employer for another 3-5 years, but would not advance within the organisation and also doubt I'd receive any pay increases in this time. I also fear this might impact future job opportunities, I also know that if I was to leave my current employer I would be taking a significant pay cut.
Also given that we are hoping to start a family soon, I realise that it makes sense to start financial planning towards this.
In terms of current options, I realise that I can start overpaying the mortgage. Currently our mortgage is due to be paid off in February '45.
If I increase the repayments by 625 per month, this can be paid off by May '33. Which sounds very nice indeed.
I don't think it's realistic that I'd be able to keep overpaying the mortgage to this level for the entirety of it, but was wondering if it best to overpay as much as I can while I have the money.
Does it make more sense to overpay the mortgage rather than max out pension contribution at this time? Or am I looking at this wrong.
Any advice would be much appreciated.