No clue about shares but I seem to remember a rule that we couldn't discuss individual shares.
Total 85KSummary of Assets and Liabilities
Deposits = 29k
Deposits (wife) = I think 30-35k
Other financial assets = 26.5k
of which shares = 13k, ETF = 9k, Govt bonds = 4.5k
Did he mentioned borrowing? I would have thought borrowing to buy into shares was a very bad idea.Not sure about borrowing €30k to invest in equities though. You can well handle the risk though if the shares collapse. So again, it's not too far wrong.
Well I have to say I triple checked the OP to see if my aging sight made me miss the borrowing bit ! That's great logic though.If you have a mortgage while you have shares, you are borrowing to invest in shares.
Hoping this isn't against the rules, but it's important to realise that Berkshire Hathaway's investment portfolio has less diverse investments than a lot of ETFs or investment trusts.Just to clarify. People often recommend Berkshire Hathaway as an alternative to an investment trust. I suppose it's a technical breach of the Posting Guidelines not to discuss individual shares, but we make an exception for it. If someone posts "Sell BH because they are facing enormous losses on their media investments" then that post would be deleted.
Are you both on track for full pensions at age, 65? If not I would prioritise AVCs or purchase of notional service. The big positive here is that investment gains are tax free and you are not getting this with equity products.Do you have a pension scheme? = YES, PS scheme
Is his money on deposit borrowing too?
I have a €500k house with a €20k mortgage.
I am thinking of borrowing €90k to invest as follows:
I want to put €60k on deposit and €30k in a mix of shares and bonds.
No. Pay the instalment and nothing more. You have one of the lowest interest rates of any mortgage in Ireland.Lender = AVANT, 120k mortgage, started 2022, for 12 years
Interest rate = 1.95% fixed for seven years from 2022
Over the past few years, we have over paid mortgage each year.
Should I do so again?
Definitely a lot more common - you've mentioned it many times how people compartmentalise their finances and don't think about leverage.Yes. And much worse.
A lot of people have difficulty understanding this.
Imagine if the OP came on and said
You might or might not say "go ahead" but you would not deny that he is borrowing to invest in deposits, shares and bonds.
Borrowing to gamble on an asset class that can loose some or all of the principle is riskier still.
Why does a civil servant need income protection?
Where is the spouse pension
Everything is reliant on your salary.
Does your pension pay a spouse in the event of your death.
That mortgage is low and a great rate so no need to overpay it. Can you put the money somewhere else to get a better return.
No clue about shares but I seem to remember a rule that we couldn't discuss individual shares.
The mortgage rate you have is amazing and is basically free money given inflation. You are in your early 40s with an LTV of 20%. Your mortgage is not high! I wouldn’t be in a hurry to pay it off, but instead to use the cheap financing to fund other objectives.
Are you both on track for full pensions at age, 65? If not I would prioritise AVCs or purchase of notional service. The big positive here is that investment gains are tax free and you are not getting this with equity products.
If you don’t want or need to fund pension I think it makes sense to keep equity type assets while carrying a mortgage of this amount. But I wouldn’t an increase my exposure very much.
Annual gross income of spouse: SAHP
As my spouse is a SAHP, as of now, she will not have a work pension, just the State Pension, assuming she returns to work after Homemakers scheme period ends
I have a €500k house with a €20k mortgage.Yes. And much worse.
A lot of people have difficulty understanding this.
Imagine if the OP came on and said
I would categorically say not to do that. No might about it.You might or might not say "go ahead" but you would not deny that he is borrowing to invest in deposits, shares and bonds.
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