Redundancy Investment & Share Exposure.

Don Alfonso

New Member
Messages
2
Age: 47
Spouse’s/Partner's age: 45

Annual gross income from employment or profession:

€0 – Recently made redundant. Previous salary was €70k – I will use this amount as this is what I will be looking for in my next job.
Annual gross income of spouse: €75k

Monthly take-home pay: €3200 + €3500 = €6700

Type of employment: e.g., Civil Servant, self-employed: Both in private sector.
In general are you:
(a) spending more than you earn, or
(b) saving?

Saving

Rough estimate of value of home: €375k
Amount outstanding on your mortgage: €100k
What interest rate are you paying?

Tracker +1.25%

Other borrowings – car loans/personal loans etc: €0

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:

€75k Irish Life Regular Premium Savings (monthly payments €700pm, Originally with Quinn Life and should be due reduced costs from next year, 15 yr anniversary)

€150k Cash (Redundancy)

€350k shares (all in the same company) CGT will be due on all of this

€15k Joint Account

Wife has savings of circa €100k in Zurich, Cash & Shares.

€15k College Fund with Zurich – Children’s allowance paid in every month

Do you have a pension scheme?

Me: DB from previous employer – Will pay €21k per year

Wife: DB: €3K + Private pension – fully maxed out

Do you own any investment or other property? No

Ages of children: 5

Life insurance: Yes


Looking for advice on the following
Best place to invest €125k of cash savings – Happy to put away for up to 10 years. Medium risk. (I was advised to Invest in the Irish Life Maps Level 4 by my bank when they seen my redundancy.)

Need to reduce share exposure (€350k). Was thinking of liquidating over 20 years to try and minimise Tax but realise this will be minimum. What is the best way to do this and where should I invest this? Can a financial advisor also give me Tax advice on minimising my Tax Exposure?

Children’s allowance is being invested in Zurich investment plan – Plan to have €40k in plan at 18 years of age. – Should I make €3k lump sum top up per year to get this to target of €100k when 18.
 

Brendan Burgess

Founder
Messages
44,172
First of all, despite it being a cheap tracker, you should clear your mortgage. You are paying 1.25% interest on it while you have the money on deposit at 0%.

Brendan
 

Brendan Burgess

Founder
Messages
44,172
Need to reduce share exposure (€350k). Was thinking of liquidating over 20 years to try and minimise Tax but realise this will be minimum. What is the best way to do this and where should I invest this? Can a financial advisor also give me Tax advice on minimising my Tax Exposure?

Unless you have CGT losses elsewhere, you can't really reduce your CGT exposure. Sure you can use up your €1,270 exemption every year, but it's not worth the hassle.

Your total assets are around €1m.

My rough rule of thumb is that, apart from your home, you really should not have any investment in an individual company in excess of 10%, so €100k in your case.

Bite the bullet. Sell €250k worth of shares immediately and take the CGT hit. You might save yourself money in the long-term as it's possible that CGT rates may rise.

Check out this thread first.


Brendan
 
Last edited:

Brendan Burgess

Founder
Messages
44,172
€75k Irish Life Regular Premium Savings

€15k College Fund with Zurich

Wife has savings of circa €100k in Zurich

Children’s allowance is being invested in Zurich investment plan

You don't need all these separate funds and I would guess that they all have very high charges.

Either invest directly in a portfolio of shares or buy an ETF.

Brendan
 

Don Alfonso

New Member
Messages
2
You don't need all these separate funds and I would guess that they all have very high charges.

Either invest directly in a portfolio of shares or buy an ETF.

Brendan
Brendan

Thanks for taking the time to reply to my questions.

Do you have any recomandations on EFT's to invest in.

I don't think I would have the time to research a portfolio and I know I don't have the expertise.

Thanks again for your help.

Don
 

JohnRoberts

Registered User
Messages
16
Brendan

Thanks for taking the time to reply to my questions.

Do you have any recomandations on EFT's to invest in.

I don't think I would have the time to research a portfolio and I know I don't have the expertise.

Thanks again for your help.

Don
What I know of EFT's in Ireland is that the tax treatment is more harsh than other countries, you have to pay tax in the 8th year on gains even if you haven't cashed out.
 
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