Hi all,
I'm looking for advice about what to do with spare cash and if I and wife should/can contribute to AVCs. We are both working in the public sector with the following details:
Age: 37
Spouse’s/Partner's age: 34
Number and age of children:
3.5!: 5, 2, 2, and one on the way (hope to maybe have more if we are lucky enough but will see how things go)
Income and expenditure
Annual gross income from employment or profession: €145k
Annual gross income of spouse: €55k
Monthly take-home pay
Me: approx 7K, wife approx: 3k,
income from rental property €1.8k (this is gross)
Type of employment: e.g. Civil Servant, self-employed
Both public servants
In general are you:
(a) spending more than you earn, or
(b) saving?
Saving approx 7k per month
Summary of Assets and Liabilities
Family home worth €700k with no mortgage
Cash of €90k
Defined Contribution pension fund: None
Company shares : 20k
Buy to Let Property worth €400k with no mortgage rented for 1800 gross pcm.
Other borrowings – car loans/personal loans etc
Do you pay off your full credit card balance each month?
If not, what is the balance on your credit card?
Yes
Buy to let properties
Value: 400K
Rental income per year: 21.6k
Rough annual expenses other than mortgage interest : 3k
Lender: no mortgage
Other savings and investments:
Do you have a pension scheme? Me 6 years in public sector single scheme.
Wife 9ish years (not sure exactly) in single scheme
Do you own any investment or other property?
Wife has approx €20k worth of directly held shares in a few different blue chip companies
Other information which might be relevant
Life insurance: None
What specific question do you have or what issues are of concern to you?
We both have good public sector pensions, I started late in the ps on the single scheme but luckily started at a high salary and should continue to earn well if I stay in the public sector. I am currently at the top of my scale but if I get promoted (which I would hope for in the coming years) would earn €170-200k depending on the role. Positions above that would be difficult to forecast the likelihood of me getting at this stage.
Q1:
If I were to contribute to avc would I be at risk of breaching any pension limits?
I'm reluctant to lock money away for the long term as we will receive substantial assets/gifts/inheritances over the coming decades (houses, blue chip stocks, land, etc) with a current after tax value of approx 4 million which would make us wealthy as we approach retirement.
Q2:
Are we better using the extra money we have now for something knowing we possibly won't need the possible enhanced benefits from avcs when we are older?
Q3:
Is there anything else we should consider financially?
Thanks for reading,
I'm looking for advice about what to do with spare cash and if I and wife should/can contribute to AVCs. We are both working in the public sector with the following details:
Age: 37
Spouse’s/Partner's age: 34
Number and age of children:
3.5!: 5, 2, 2, and one on the way (hope to maybe have more if we are lucky enough but will see how things go)
Income and expenditure
Annual gross income from employment or profession: €145k
Annual gross income of spouse: €55k
Monthly take-home pay
Me: approx 7K, wife approx: 3k,
income from rental property €1.8k (this is gross)
Type of employment: e.g. Civil Servant, self-employed
Both public servants
In general are you:
(a) spending more than you earn, or
(b) saving?
Saving approx 7k per month
Summary of Assets and Liabilities
Family home worth €700k with no mortgage
Cash of €90k
Defined Contribution pension fund: None
Company shares : 20k
Buy to Let Property worth €400k with no mortgage rented for 1800 gross pcm.
Other borrowings – car loans/personal loans etc
Do you pay off your full credit card balance each month?
If not, what is the balance on your credit card?
Yes
Buy to let properties
Value: 400K
Rental income per year: 21.6k
Rough annual expenses other than mortgage interest : 3k
Lender: no mortgage
Other savings and investments:
Do you have a pension scheme? Me 6 years in public sector single scheme.
Wife 9ish years (not sure exactly) in single scheme
Do you own any investment or other property?
Wife has approx €20k worth of directly held shares in a few different blue chip companies
Other information which might be relevant
Life insurance: None
What specific question do you have or what issues are of concern to you?
We both have good public sector pensions, I started late in the ps on the single scheme but luckily started at a high salary and should continue to earn well if I stay in the public sector. I am currently at the top of my scale but if I get promoted (which I would hope for in the coming years) would earn €170-200k depending on the role. Positions above that would be difficult to forecast the likelihood of me getting at this stage.
Q1:
If I were to contribute to avc would I be at risk of breaching any pension limits?
I'm reluctant to lock money away for the long term as we will receive substantial assets/gifts/inheritances over the coming decades (houses, blue chip stocks, land, etc) with a current after tax value of approx 4 million which would make us wealthy as we approach retirement.
Q2:
Are we better using the extra money we have now for something knowing we possibly won't need the possible enhanced benefits from avcs when we are older?
Q3:
Is there anything else we should consider financially?
Thanks for reading,
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