Thanks, not exactly IT, but it is in tech with an MNC. Shares bought vary from bonus/performance related, to a discount of around 20%. I do sell a fair few, most of the cash in the bank is from that, but I agree I am exposed quite a bit, hence this post as I'd like to diversify. So far the shares have returned well, as the company is doing well, but thats not going to last forever, so I do feel cashing some out is prudent.Well done on your career to date. IT?
Do you get a good deal on shares bought from your salary? If it is not an extremely good deal I would tend not to buy shares/
invest in my own employer- you already invest your time, and your main income stream is enough financial risk linked to one company, and depending on the industry I would also avoid investment in other employers in that industry, again simply an extension of the desire to diversify.
Any reason not to pay off mortgage?I’d pay the mortgage off ASAP. You would need a very large gross return on shares to justify keeping a mortgage of 3.2%, and incur a lot of risk trying to achieve that ROI on shares, while paying off shares will give you a good effective return compared to not paying it off, with zero risk.
does your employer give an incentive to add to pension?
My numbers are not as good as yours but understanding if I can manage wealth to retire early is something I am exploring at the moment. I’d take professional advice early rather than later but I am sure other posters will have some much more useful inputs!
Looking at my payslip 10800 a month gross before tax, is 130k. The rest is made up of shares and bonus, so does not appear on the monthly statement. My nett pay from that is about ~5k, with the following deductions€8,000 a month net seems very low for a couple with income of €200k plus €20k a year.
Hi all,
I've been pretty lucky with my career, but I've done nothing to plan for retirement, other than my contributory pension as part of my employment. I'd like to be able to smartly handle the money I have, as well as plan for ideally early retirement, and how to handle land inheritance without being severely taxed. Details are
Age: 41
Spouse’s/Partner's age: 44
Annual gross income from employment or profession: 200k
Annual gross income of spouse: 20k
Monthly take-home pay: 8k (some auto goes to company stocks as a savings scheme so would be higher without that)
Type of employment: e.g. Civil Servant, self-employed: employee.
In general are you:
(a) spending more than you earn, or
(b) saving
Saving. Have about 150k in the bank, anotjer 350k in stocks.
Rough estimate of value of home
Amount outstanding on your mortgage:
120k
What interest rate are you paying?
3.2%
Other borrowings – car loans/personal loans etc
None
Do you pay off your full credit card balance each month?
Yes
If not, what is the balance on your credit card?
Savings and investments:
Stocks, 350k.
Do you have a pension scheme?
Yes, about 18k a year, current pension pot is 270k
Do you own any investment or other property?
No
Ages of children:
12,11,6
Life insurance:
Yes,basic
So, things I'd like to do:
Retirement - current projection is 40k pa, if I retire at 65, so clearly would like to have investment income. Perhaps rental property? If so, where?
Retire early - maybe late 50s?
I will likely inherent land from the family farm, valued at ~400k. However I'm not a farmer, and its not desirable to sell the land (pressure to keep it in thw family), so this stands to be a large tax burden - is there any way I could minimize this?
Any and all advice is appreciated!
I live outside the city, so I'd not expect the house to be in high demand if I were to sell, so. I'll say 300k, maybe 400k at a stretch, so not much room for income from downsizing.What is value of house. Is downsizing at retirement another option to further fund early retirement?
Thanks, I'll look into those articles.this is such an increasingly common situation that we recently purchased another advice business specifically to provide advice to people in this situation.
I’ve written a number of detailed blogs recently dealing with for example the perennial question
And it sounds like you have lots of scope to make tax relieved additional voluntary contributions (AVCs) in addition to the employer matched payments
and why selling stock in your employers company is always the right thing to do
Our new service is still in development
Thanks, I'll look into those articles.
I'm not a fan of investing in a pension via AVCs, as the return there seems a lot worse, even including the tax break, than other investments. (50% over 5 years for an aggressive fund, vs 200% over 5 years for the plain old NASDAQ. If a fund cannot beat the NASDAQ, its not a great sign IMHO).
What are the current areas you advise on? Is there anything for long term investment/retirement income, like buying property to rent, etc?
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