Age: 30
Spouse’s/Partner's age: Single
Annual gross income from employment or profession: €33,000
Type of employment: e.g. Full Time PAYE
In general are you:
(a) spending more than you earn, or
(b) saving?
No Property.
Other borrowings – car loans/personal loans etc
No loans.
Savings and investments: €85,000
Do you have a pension scheme? No
Do you own any investment or other property? No
Ages of children: None
What specific question do you have or what issues are of concern to you?
I currently have a large amount of cash on deposit (70,000 of which is my own and includes a 15 gift).
This was achieved through being both frugal and working in a role where accomodation expenses and subsistence were covered for the best part of 3 years.
This capital is divided up between 10k in a current account and 75k in the local credit union. I am trying to establish a plan to gain financial freedom by the age of 50. So a 20 year time frame.
My parents have been renting their property for the past 30 years and a new city council scheme will allow them to purchase the property at a 45% discount. Tenant Purchase scheme.
I realise that my savings are not working as hard as they can, which is fast becoming a source of frustration (especially as the dividend this year was a miserly 0.5%!!). I have done some initial thinking and have come up with the following plan. I'd like some feedback if possible to see if this is a valid/solid plan.
I have disciplined myself to live on €250 per week.
I estimate that to achieve an income of €12,000 per annum (€1,000 per month/ €200 per week), I would need have capital of circa €350,000 at a standard rate of 3.5%
I'd like to achieve this by doing the following initially.
1. €25,000 in index tracker funds over a 20 year period. (Divided into 2 funds so €12,500 in each).
2. €20,000 in the 10 year National Solidarity Bond at 49%
3. €30,000 in the 5.5 Year Savings certificate at 21% (and rollover and compound upon maturity)
4. Save an additional €300-400 per month. Assuming a 3.5% return annually.
5. Keep 10k on deposit as an emergency fund to protect againt job loss, medical expenses etc.
6. Pay €400-500 per month on the Council House over a 15 year period. Loan would be drawndown by parents but with me as guarantor. Based on current market value plus the discount. I would estimate that the mortgage here would be €75,000.
I think this is pretty conservative. Should I consider holding dividend paying solid stocks? Putting a 25% stop loss on initially and holding over the long term (20 years) too?
Any thoughts are appreciated. Would it be worth seeking paid professional advice with these goals in mind?
Spouse’s/Partner's age: Single
Annual gross income from employment or profession: €33,000
Type of employment: e.g. Full Time PAYE
In general are you:
(a) spending more than you earn, or
(b) saving?
No Property.
Other borrowings – car loans/personal loans etc
No loans.
Savings and investments: €85,000
Do you have a pension scheme? No
Do you own any investment or other property? No
Ages of children: None
What specific question do you have or what issues are of concern to you?
I currently have a large amount of cash on deposit (70,000 of which is my own and includes a 15 gift).
This was achieved through being both frugal and working in a role where accomodation expenses and subsistence were covered for the best part of 3 years.
This capital is divided up between 10k in a current account and 75k in the local credit union. I am trying to establish a plan to gain financial freedom by the age of 50. So a 20 year time frame.
My parents have been renting their property for the past 30 years and a new city council scheme will allow them to purchase the property at a 45% discount. Tenant Purchase scheme.
I realise that my savings are not working as hard as they can, which is fast becoming a source of frustration (especially as the dividend this year was a miserly 0.5%!!). I have done some initial thinking and have come up with the following plan. I'd like some feedback if possible to see if this is a valid/solid plan.
I have disciplined myself to live on €250 per week.
I estimate that to achieve an income of €12,000 per annum (€1,000 per month/ €200 per week), I would need have capital of circa €350,000 at a standard rate of 3.5%
I'd like to achieve this by doing the following initially.
1. €25,000 in index tracker funds over a 20 year period. (Divided into 2 funds so €12,500 in each).
2. €20,000 in the 10 year National Solidarity Bond at 49%
3. €30,000 in the 5.5 Year Savings certificate at 21% (and rollover and compound upon maturity)
4. Save an additional €300-400 per month. Assuming a 3.5% return annually.
5. Keep 10k on deposit as an emergency fund to protect againt job loss, medical expenses etc.
6. Pay €400-500 per month on the Council House over a 15 year period. Loan would be drawndown by parents but with me as guarantor. Based on current market value plus the discount. I would estimate that the mortgage here would be €75,000.
I think this is pretty conservative. Should I consider holding dividend paying solid stocks? Putting a 25% stop loss on initially and holding over the long term (20 years) too?
Any thoughts are appreciated. Would it be worth seeking paid professional advice with these goals in mind?