Onmywayback:
> you seem to have a relatively modest net worth.
No offense taken on my part, but I always thought we were doing OK. I guess it depends on who you compare against. From reading the other posts on this forum there is certainly some very high net worth people using this site - but the people interested in a askaboutmoney website are the same people that spend a lot of time accruing assets and talking about them. Compared to general public would expect that we are in a favorable position.
Onmywayback:
> you seem to have a relatively modest net worth.
No offense taken on my part, but I always thought we were doing OK. I guess it depends on who you compare against. From reading the other posts on this forum there is certainly some very high net worth people using this site - but the people interested in a askaboutmoney website are the same people that spend a lot of time accruing assets and talking about them. Compared to general public would expect that we are in a favorable position.
Gordon Gekko - what is enough?...how long is a piece of string?!
I already contribute 4.2K (350 monthly to my pension), company match - so that's 8.4K going in.
If I go 10% - 700 euro off my pay check every month, it sounds like a bit of a hit. I know tax saving, straight away its value doubles, but when I retire I won't have direct access to it will have buy an Annuity
Absolutely agree - you should keep a rainy day fund of between 3-6 months expenses in cases of emergency. Put this into a short term notice account to remove temptation to spend it or even if on demand, move it to a different account where you specifically have to request it to access it.I think that the €30k should be kept in cash as an emergency fund.
We absolutely love holidays as well and we want to have some amazing experiences with our kids (much younger than yours I will add). However there is a balance between spending widely and sensibly. Your take home is roughly 7k a month, your mortgage is roughly 1k, leaving 6k a month for spending. You save roughly 500/month - leaving 5.5k a month spending money. In perspective this is 66000 euro per annum AFTER childcare and mortgage. I think this is quite high, and while I understand you wish to live a life as well, I genuinely think you should review this. Not only is it going to potentially create issues for you in the future, especially around retirement when incomes will fall considerably, but also may have a negative impact on your children and create an expectation of a standard of living which they may not be able to afford themselves.Yes we could certainly be more prudent on our spending. But I know holidays will be high percentage spend for us - Florida/New York/Barbados have been recent destinations, expensive for family holidays but great memories with the kids. Have to balance enjoying life and financial planing for future also
Yes agree 100% here. There appears to be a larger number of higher earners (not necessary high net worth) people posting in the money makeover thread recently. I find this topic very interesting as I would fall into this bracket and interesting to see how others live and the reality behind the closed door. I think the main issue is simply boom time 'lifestyle inflation' and the effects this has on the savings levels of higher earners. I think it was easily in the recession times as major displays of wealth were not expected, whereas now they have become the standard again (from what I can see).V interesting topic and one I have been thinking about lately, especially in relation to the high net worth of the majority of people who seem to post on money makeover section lately.
This is something we have debated considerably over the years. Our kids are nearly 6 and 4, and have left that somewhere in the sun would have been of interest to us while they were young. We decided against it and will do different experiences with them until they are 'off the books' so to speak, and who knows what we will do when we get closer to retirement. It may be an option then depending, but we would need to be comfortable we would get decent use out of it before we would commit to something like this.For what it’s worth, my own plan is to avoid purchasing a holiday home initially and undertake a number of AirBnB type long-term rentals in various parts of the world. I think that owning a place can be quite restrictive, although ultimately we probably will.
Firstly, you wont have to purchase an Annuity - there are other options available and likely to be more options available by the time you retire.Gordon Gekko - what is enough?...how long is a piece of string?!
I already contribute 4.2K (350 monthly to my pension), company match - so that's 8.4K going in.
If I go 10% - 700 euro off my pay check every month, it sounds like a bit of a hit. I know tax saving, straight away its value doubles, but when I retire I won't have direct access to it will have buy an Annuity.
Anyway - I guess the answer is put in as much as you can.
Is this not a pretty aggressive average growth rate over 20 years?assuming an average growth rate of 4.5% (post fees)
This will not kick in until OP is 68, and maybe later depending on what changes are made in the meantime to the State PensionAssuming you’re entitled to the State Pension of circa €12,000
28% may not be that bad, but really does depend on the OP's expectations in retirement, and the lifestyle they wish to enjoy. It may also depends on the target age of retirement, and the OP's relative health in retirement.approximately 28% of your current income level
Respectfully, I would contend that a poster who is spending a lot during his/her working life is more likely to have a higher income requirement in retirement.
I worry for the wellbeing of people who are used to having money but who aren’t saving for their retirement.
but really does depend on the OP's expectations in retirement, and the lifestyle they wish to enjoy
No better reason to do a clear household budget so you clearly understand what is coming and going. You cannot manage anything, and make it work for you, unless you clearly understand itI made mistake in my initial overview - over estimated how much take home pay my spouse gets, lot of reductions, checked pay slip - More like 6.4K take home pay,
Do you know your AMC and contribution rates? Can you get any better deal on the market? Do you know how your fund selection has performed over the years? Do you know your risk profile? What percentage is in equities etc? All of these should be reviewed and considered. This is going to be key to any financial strategy in the future. Remember, you can draw down a lump sum when you retire and that could potentially purchase you the property abroad !!! You dont need to sit watching your pension fund every week, but once every 2-3 years to review its performance is no harm.my pension pot is 140K (didn't know value until I checked this morning)
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