Where to invest 60k (34yo married, 1kid, pension contributions maxed out)

tedd01

Registered User
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3
Age:
34
Spouse’s/Partner's age:
33

Annual gross income from employment or profession:
E120,000
Annual gross income spouse:
E120,000

Type of employment:
Both private sector employees

Expenditure pattern:
Saving 6-7k a month

Rough estimate of value of home: E370,000
Mortgage on home: E130,000 - (3.5 years)
Mortgage provider: AIB
Repayments: 515 eur / month
Mortgage protection: 20 eur / month
Annual management fee 2200
Type of mortgage: Variable (2.7%)
Other borrowings – car loans/personal loans etc
None

Do you pay off your full credit card balance each month?
Yes, not always fully

Savings and investments:
E60,000 savings.

Do you have a pension scheme?
Me: Yes, I pay 13%, employer matches 7% into personal pension
Suppose: Pays 10%, employer matches 4%

Do you own any investment or other property?
No.

Ages of children:
1

Life insurance:
Yes (company sponsored)

What specific question do you have or what issues are of concern to you?
We would like to start investing our savings with goal 1: to get regular passive (or almost passive) income goal 2: increase our net worth long-term

Currently considering getting either:
a) a buy to let 2 bed apt in Dublin
b) investing in equity (ETFs) / individual stock
c) overpaying our mortgage

We are both EU citizens, and are highly likely to move to another country within 3 years.

I would appreciate any advice, ETFs looked very good until I understood the high tax implications. Buy-to-let seems not a bad option, but managing tenants can be tricky, especially from abroad. And overpaying mortgage gives a not high enough return + if we move from the country and start letting out our main apartment (IFSC, 2 bed) it'd be better to have mortgage to offset the income tax.

Thank you for all constructive feedback!
 
My thinking would be that as you are looking at moving to another country with three years (and assuming you already know which country) that you should not confine your thinking to Ireland alone but look at investment opportunities there too, especially if you are planning to make it a permanent move and if it is not a eurozone country. It would also be worth having an accessible (i.e. basically cash) moving fund, preferably in your target country/currency, that you could use to facilitate your move, especially if your move would not be supported by en employer, .

In terms of your three listed options, you already have a property so purchasing a buy-to-let would mean you are managing the letting of two different properties in Dublin from abroad, whilst dealing with taxation across two jurisdictions. It isn't impossible but it may become burdensome, so it would be worth thinking it through carefully. Also if your new country is not in the Eurozone you would have to consider the potential impact of currency fluctuations on an illiquid investment. Overpaying on your mortgage I think you are discounting already but perhaps deserves more attention. I am curious as to why you have 3.5 years in brackets beside the outstanding balance, repayments @€515 pm would not clear €130k in 3.5 years so what does it mean? The expense that is allowed is not the full repayment, it is the mortgage interest repayment only, so you are talking about relief on a fraction of €515. The middle option may suit you better than property investments (more liquid), however you'd need to consider how long you plan to stay invested (5-7 years would be normal) and tax implications, etc.
 
Thank you for your feedback, so-crates!

We're considering Singapore for a few years and are planning to eventually end up and retire in Europe (likely Eurozone).

Regarding 3.5 years in the brackets – that's when I bought the apartment, sorry for the confusion.

Thanks!
 
Just a note...Do you have Income Protection?.......Might be important to consider
 
Just a note...Do you have Income Protection?.......Might be important to consider

Hi gimp, can i ask what the reassons would for IP being of potential importance in the OPs particular situation? With 2 salaries each of 120k is not arguable that if 1 salary ended they woukd stil l be in a very comfortabke financial position. Also isnt making a claim on IP notoriously difficult and time consuming notwithstanding of course its necessity in the unfortunate event that its required.
 
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