I currently have a stock porfolio. I also have a (new) mortgage and will be trading up in a few years although I could be moving more rural which may not result in a more expensive property, current mortgage is 450k.
I don't think it makes sense for a higher-rate tax payer to make (or hold) after-tax investments while carrying a mortgage.
The issue I struggle is what pension pot should I aim for in retirement?
Hi Andrew
A very interesting case study. I wouldn't be able to answer it without knowing the following.
What is your salary?
What is your wife's salary if you have one?
How much is the house worth?
Is it a tracker mortgage?
Brendan
One other key question is how much you have in other investments at present?
A mortgage of €450k is high, but if you also have €150k in shares, it's less important.
Brendan
I think in a lot of cases people will end up working longer in line with increases in life expectancy.I think what is often overlooked is the actual amount you need to live off in future probably because it is hard. There is also the factor that we are living longer, so should we be expecting a pension pot to last 30 to 40 years?
OP, you haven't mentioned if your employer provides matching contributions or are you into total AVC territory? I think that would be relevant.
I think in a lot of cases people will end up working longer in line with increases in life expectancy.
@Andrew365 how is your wife's pension pot looking? Do you want to have kids? How will potentially only having 1 salary impact your repayment on a €450k mortgage?
I am a similar age to you with similar salary and mortgage @ €360k but my wife is currently a stay at home mother to 2 kids so only one of us contributing to a pension. I have about €500k equity in my house, I have no other significant assets or investments. I keep a €30k emergency fund, I am contributing 10% to pension and everything else goes off the mortgage. Whilst this may not be the optimal approach It's one that I feel works best for me.
The fact that you have conflicting opinions from a number of financial "experts" would lead me to believe that there isn't a generic correct answer to your question. You will very rarely hear people give out about paying down a mortgage early or having too big a pension pot. Why not do a combination of the two for now and adjust in line with any material future life events
...I am a similar age to you with similar salary and mortgage @ €360k but my wife is currently a stay at home mother to 2 kids so only one of us contributing to a pension. I have about €500k equity in my house, I have no other significant assets or investments. I keep a €30k emergency fund, I am contributing 10% to pension and everything else goes off the mortgage. Whilst this may not be the optimal approach It's one that I feel works best for me...
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