What to do with inheritance?

Stevo2006

Registered User
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140
Age: 30
Spouse’s/Partner's age: 30

Annual gross income from employment or profession: 57000
Annual gross income spouse: 45000

Type of employment: PAYE
Expenditure pattern: In general are you spending more than you earn or are you saving? Live fairly comfortably but could be saving more

Rough estimate of value of home: - €550000
Mortgage on home: - €315000
Mortgage provider: - IIB
Type of mortgage: Tracker
Interest rate: 5.19 which i know is high but intend doing something about it shortly

Other borrowings – car loans/personal loans etc: No

Do you pay off your full credit card balance each month? Usually
If not, what is the balance on your credit card?

Savings and investments: €11,000 in AIB high interest account

Do you have a pension scheme? Yes

Do you own any investment or other property? No

Ages of children: None

Life insurance: Yes with SIC


What specific question do you have or what issues are of concern to you?

We are due to inherit €150k approx. very soon. We plan to spend around €20k on home improvments but are wondering what to do with the rest. We do plan to pay a significant amount off the mortgage and therefore be in a position to command a <50% LTV mortgage.
Is there an amount we should leave on the mortgage to maximise our FTB tax relief for the next 3 1/2 years and invest an amount to then pay off when the FTB refief runs out.
Should this be in deposit accounts i.e. Rabo etc @ approx 5%?

or

I have only started paying the minimum into a defined benefit pension half way through this year, should i pay enough of the mortgage to enable me to increase my AVC's to the max?

or

Pay the maximum off the mortgage as possible?

All comments welcome
 
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