2blacklines
Registered User
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Other borrowings – car loans/personal loans etc: None, trust fund for child @ €250/month each to capitalise on tax free gift allowance to provide for third level education/future house deposit.
How does that trust fund work? Was it easy to set up and how did you do it.
I think an investment property would be an excellent idea for you.
Not sure if paying off the mortgage now is a good idea.
Investing in your pensions is a good way to go.
Definitely considering clearing the mortgage completely but want to have a little more in the rainy day fund first! Current home could be our forever home but we understand that a lot can change. We feel no compulsion to change any time soon but would consider if the market dropped in the future. House thankfully needs no work however we may consider an extension in a few years.Is your current property your "forever home"? Will it need any major renovations/refurb in the short-medium term?
Thanks for the suggestions, similar thoughts to myself! Any suggestions for particular mutual funds to consider?I would pay off the house this week and be done with it.
Put away three months expenses away for a rainy day fund.
Put minimum of 15% of gross household income into pensions -
Put something away towards children's college expenses each month
Invest in mutual funds that have a track record of at least matching the S&P 500
I used a financial advisor for it - I didn't want to put money on deposit due to the poor returns.How does that trust fund work? Was it easy to set up and how did you do it.
These are interesting, I didn't know about them, thanks I will look into them as a nice balance risk wise.Once your mortgage is paid off in full, you could start buying 5-Year State Savings Certificates on a monthly basis with any surplus cash, while maintaining a 100% allocation to global equity funds within your respective pensions.
This advice looks in line with the general suggestions above and is really appreciated, thanks.Personally I would build up that €20k rainy-day fund a bit further, then put anything left over into the stock market.
Depends on how risk averse you are, but you could consider keeping that €20k in cash, build up a further €20k in State Savings (5 or 10 year products) where you'll get better returns than the bank, it's completely safe and accessible within a few days if required.
Then open an account with one of the online stock brokers (DeGiro would be quite reasonable for you buying ETFs on a monthly schedule) and buy broad ETFs with your savings each month, for example I buy the "iShares S&P 500 EUR Hedged UCITS ETF ACC" each month as it is in Euro and accumulates so no messing with dividends. Yes you'll have to deal with the deemed disposal rule that everybody hates so much, but 8 years is a long time away and you can always pay an accountant to do the figures for you at the time if you're not comfortable - I would not let it hold you back from entering the market.
Happy to provide a bit of context. There is about €120k of asset appreciation within the €600k figure over the last 5 years. I've saved since I hit the workforce, sacrificed my pension investments to this end but meant we didn't need a big mortgage - everything that's gone into the house etc has been our money. I've always valued money, so plenty of shopping around over the years for the best deal and never spending above my means. We've become a lot more casual with money in recent years which is nice now!2blacklines,
You have me completely bamboozled. How in the name of Adam, or whoever, did you get the mortgage down to 28k at 35 years of age? What age were you when you bought the house or has it just increased hugely in value to the €600,000.00 figure. Hard to believe one could pay off a huge mortgage like that in a few years unless something else was going on. Now don't take what i'm saying as critisism or anything, it's not, i'm just curious as to how it happened and I suppose curiosity comes into it as well.
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