Hi,
I was made redundant 4 months ago but thankfully am starting a new permanent job on Monday. I worked for the previous 10 years in a medium sized company and had a 5% contributory defined benefit pension which i contributed to for 7 of the 10 years. I have deferred this pension until retirement age.
The company i am starting with are quite small and do not offer a pension as part of the package. I believe my best option is to start a PRSA. I would appreciate any advice from posters on the most appropriate PRSA for some one in my position.
I will give a brief outline of my current financial situation:
My self and wife are both early 30's
Wife works full time and earns approx 55-60k per year. She has a 5% contributory defined pension and has contributed for the last 4 years (when she joined the company). She intends to continue working for the forseeable future.
Primary residence has a mortgage of approx 350k on a tracker of 1.68%. Would estimate value at 270-290k. Am not bothered by negative equity as do not intend moving and house is 4 bed semi in Cork city suburbs - should be big enough if we decide to have more kids (have a 5 month old boy).
Have no other loans or debts.
Have approx 120k in cash (all earning ,nett of DIRT, more than mortgage interest rate) and PIP worth approx 20k
New job pays approx 50k per annum but all going well will increase by approx 20k in year two.
What PRSA/type of PRSA would people recommend? I would not consider myself to be a huge risk taker, but given the timescale of the PRSA, I would have no problem with a medium risk product in the early years (intend working at least until i am 60).
Thanks
Cully