So what?
@Barbara Bunter
I take home a little more than you. I have several thoughts, which you are free to disagree with.
In short, you are not wealthy and your situation could nosedive rapidly if things went wrong for you in anyway.
- You don't seem to have an emergency fund.
- You owe an awful lot of money whatever way you slice it.
- Your monthly expenses are on the high side. I don't spend anywhere near 4k per month and I think a lot of what you're spending must be discretionary and low priority when compared with the first two points above.
- Whatever wealth you will eventually have ('will have', since you currently have a very negative net worth) is relatively undiversified and overweighted in an unwieldy, expensive and illiquid asset class - property.
- Finally, correct me if I'm wrong, but you are living paycheck to paycheck.
I would assess whether you really need all those properties, I would aggressively pay down the debt, and I would aim to reduce your monthly expenditure.
- He-Man
I'm guessing He Man might in a way be saying that if you guys saw something that was really desireable and you wanted to buy it for say, €200,000.00, you would have to borrow the money, as you don't have the ability to pay for it without borrowing. That would add to your borrowing and although you would be asset rich you would also be cash poor. I know, I know, you're in a great position to pay back all the debt, but we live in very unpredictable times.
Other than that, you personally come across as having a great grasp of what needs doing in your own personal circumstances and I wonder why you are here on this forum asking for advice at all when you seemingly intend to carry on as you desire anyway? Just an observation by the way, not in any way a criticism.
Agree not many to be fair, but there are always a few. And there is an argument that with the salary you guys are taking in, you should be in that group [I would personally debate why anyone would want 200k in cash at the moment given the return]Equally not a criticism, but what 36/37 year old has the ability to buy something for €200,000 with cash?
Agree, but the ECB rate will not always be this low. Are you prepared for a rise in it, and will they still be good investments at say 3.5% or 5% interest rates. The overall capital return may be better now, and its worth considering in the overall scheme of things.Debt is not always a bad thing. For example, the debt on our investments is at 0.5% and 0.25%.
I think this is the point that people are making here. Yes you make a fantastic salary, but you are spending on the high side. If that is a conscious decision that's fine - its your decision. People on here, especially the ones giving advice, tend to be relatively financially 'savvy' and don't like the idea of constant frivolously spending - they have been the impacts of good and bad times, on both people who were wealth and those who were not. As an old agricultural saying says "save the oats at the mouth of the bag".I don't know your circumstances. How many kids do you have? How many clubs are you a member of? How often do you go on holidays?
I'm not sure what you mean about our children? Whatever happens, they'll be comfortable. We have income protection, all our debts insured, and a payout of €480,000 if my husband dies.
Life assurance is pretty cheap actually. I would double that 480k if I were you.
What would be the point? If one of us dies, there's a €1.25m property, a €250k property, and a €180k property, all debt free. Plus €480k tax-free if my husband dies or a meaningful lump sum if I die. Plus €12k per annum from the State. Plus a pension payable immediately, the size of which depends on who dies. Plus the share options if my husband died.
Five times you have mentioned dying in that short paragraph
I think you need to chill out a bit.
I think she's dead right to think about that. None of us knows what's around the corner. She's just being businesslike and proper order.
Hi Firefly. Thank you for replying.
What would be the point? If one of us dies, there's a €1.25m property, a €250k property, and a €180k property, all debt free. Plus €480k tax-free if my husband dies or a meaningful lump sum if I die. Plus €12k per annum from the State. Plus a pension payable immediately, the size of which depends on who dies. Plus the share options if my husband died.
Hi Firefly. Thank you for replying.
What would be the point? If one of us dies, there's a €1.25m property, a €250k property, and a €180k property, all debt free. Plus €480k tax-free if my husband dies or a meaningful lump sum if I die. Plus €12k per annum from the State. Plus a pension payable immediately, the size of which depends on who dies. Plus the share options if my husband died.
Agree not many to be fair, but there are always a few. And there is an argument that with the salary you guys are taking in, you should be in that group [I would personally debate why anyone would want 200k in cash at the moment given the return]
However, I think the guys are saying is that you are not very liquid asset rich given your overall wealth. Your main wealth is tied up in property and pension, neither of which can be accessed in an emergency. There may be merits in having liquid assets outside the pension structure.
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