Thoughts on a plan...

Chronic Martian

New Member
Hello All, looking for some insights into my situation below.

Age: 45
Spouse’s/Partner's age: 45

Annual gross income from employment or profession: Live abroad with intention of returning in 1yr. We are both working and live off spouse's income and save rest. We have savings to be invested in a pension/investment plan. The intention is that both of us will work when we return but this might not be in Ireland but would prefer to be depending on type of job.
Annual gross income of spouse:

Monthly take-home pay: See above

Type of employment: e.g. Civil Servant, self-employed – probably both will be self-employed when we return

In general are you:
(a) spending more than you earn, or
(b) saving?
B – Saving monthly

Rough estimate of value of home: €400k – this is currently rented
Amount outstanding on your mortgage: €240k (rental income surplus after mortgage covers taxes and maintenance and saving rest)
What interest rate are you paying? 3% fixed until August 2020 with EBS

Other borrowings – car loans/personal loans etc - No

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: plan to invest €300K and have €150K+ on deposit over the next 12 months – currently have €170K savings.
Do you have a pension scheme? Old PRSA and Old Employer scheme – total value 60K approx
Spouse has public sector pension but only funded for 10 years or so – not sure of value

Do you own any investment or other property? Yes - West of Ireland home – fully owned without mortgage or debt – plan to be primary residence

No Children

Life insurance: Mortgage protection to the value of the rented house.

What specific question do you have or what issues are of concern to you?
I have a plan to put several tranches of cash into an investment fund over the next 12 months to value of €300K approx – thinking of using a recognised Irish Investment house to manage it. Not sure if this should be short term (2/3 years) are earned slightly better than in a bank or split between short and long term accounts? But the tax implications are off putting. Thereafter add to it based on future job earnings. Looking for advice or insights if there might be a better strategy?

  • Be in a position to retire in 2035, aged 60. I'm not all that keen on the type of work I do – its stressful, pays well but I don’t envisage being able to live in the West and to continue doing it – would like to do something less stressful and have a better work life balance
  • Clearing the mortgage on the rented house early and be debt free as soon possible but not sure this is the right move given the rental income is covering the repayments and covering any tax and maintenance costs.
Thank you.