David10432
New Member
- Messages
- 3
Personal details
Age: 39
Spouse’s/Partner's age: 40
Number and age of children: 2 children - newborn and 1 year old
Income and expenditure
Annual gross income from employment or profession: 50k from rental properties + 20k salary from two businesses
Annual gross income of spouse: 50k from rental properties
Monthly take-home pay : 7k
Type of employment: Own / operate 2 businesses, Own 2x rental properties
In general are you:
(a) spending more than you earn, or
(b) saving?
Saving around 2k a month from rental property income + salary. Also building up retained earnings within the companies.
Summary of Assets and Liabilities
Renting - 2k a month - do not own a home
Cash of €600k in high-interest bank (Created and sold a business a number of years ago)
2x Rental Properties worth €1,000,000 (no debt / mortgage) - both properties located in Cork (RPZ)
2x Companies :
1) SPV with guesthouse worth €1,000,000 that generates roughly €150,000 trading profit a year - 650k of retained earnings including this years profits - Directors Loan of 800k owed to us (no debt / mortgage)
1) New Business - roughly €200,000 trading profit this year - Not distributed (Yearly profit will be unpredictable and is not guaranteed long term)
No pension.
Do not own any public shares / etfs.
Other borrowings – car loans/personal loans etc
Do you pay off your full credit card balance each month? Yes
8 year old car paid in cash
Other savings and investments:
Do you have a pension scheme? no
Do you own any investment or other property? yes - 2 rental properties and guesthouse
Other information which might be relevant
Life insurance: none
What specific question do you have or what issues are of concern to you?
We are in a very fortunate position that we worked very hard for.
Income
- 120k yearly personal income from 2 rental properties and 2 businesses
Assets
- 600k cash
- 800k directors loan (650k available to be paid out now from retained earnings)
- 200k trading profit this year from our new business (unpredictable)
- 2 rental properties worth 1m and SPV worth 1m
We do not have a family home or a pension. We do not come from wealthy families.
We have modest lifestyles and currently are comfortable living off the income generated from the 2x rental properties.
We are aware that 2 young children will increase our expenses. (No childcare expense - spouse minds the kids).
We are looking at the option of purchasing a family home and setting up a pension.
3 options we are looking at :
1) Buy Semi D House - 500k - probably not a forever home (would probably trade up in 3-5 years) and put this years company profits 350k into Director pension PRSA, put the remaining 600k into high interest saving account (Wise 3.3%) or ETFs
2) Buy the Dream Forever Home - 1.25m, put 200k into Director pension PRSA
or
3) Keep renting, put 350k into Director pension PRSA and put 1.1m in high interest savings (Wise 3.3%),
Going forward put any profits from our businesses into Director pension PRSA
I suppose we are unsure what to do - is it reckless to purchase the forever home now?
Age: 39
Spouse’s/Partner's age: 40
Number and age of children: 2 children - newborn and 1 year old
Income and expenditure
Annual gross income from employment or profession: 50k from rental properties + 20k salary from two businesses
Annual gross income of spouse: 50k from rental properties
Monthly take-home pay : 7k
Type of employment: Own / operate 2 businesses, Own 2x rental properties
In general are you:
(a) spending more than you earn, or
(b) saving?
Saving around 2k a month from rental property income + salary. Also building up retained earnings within the companies.
Summary of Assets and Liabilities
Renting - 2k a month - do not own a home
Cash of €600k in high-interest bank (Created and sold a business a number of years ago)
2x Rental Properties worth €1,000,000 (no debt / mortgage) - both properties located in Cork (RPZ)
2x Companies :
1) SPV with guesthouse worth €1,000,000 that generates roughly €150,000 trading profit a year - 650k of retained earnings including this years profits - Directors Loan of 800k owed to us (no debt / mortgage)
1) New Business - roughly €200,000 trading profit this year - Not distributed (Yearly profit will be unpredictable and is not guaranteed long term)
No pension.
Do not own any public shares / etfs.
Other borrowings – car loans/personal loans etc
Do you pay off your full credit card balance each month? Yes
8 year old car paid in cash
Other savings and investments:
Do you have a pension scheme? no
Do you own any investment or other property? yes - 2 rental properties and guesthouse
Other information which might be relevant
Life insurance: none
What specific question do you have or what issues are of concern to you?
We are in a very fortunate position that we worked very hard for.
Income
- 120k yearly personal income from 2 rental properties and 2 businesses
Assets
- 600k cash
- 800k directors loan (650k available to be paid out now from retained earnings)
- 200k trading profit this year from our new business (unpredictable)
- 2 rental properties worth 1m and SPV worth 1m
We do not have a family home or a pension. We do not come from wealthy families.
We have modest lifestyles and currently are comfortable living off the income generated from the 2x rental properties.
We are aware that 2 young children will increase our expenses. (No childcare expense - spouse minds the kids).
We are looking at the option of purchasing a family home and setting up a pension.
3 options we are looking at :
1) Buy Semi D House - 500k - probably not a forever home (would probably trade up in 3-5 years) and put this years company profits 350k into Director pension PRSA, put the remaining 600k into high interest saving account (Wise 3.3%) or ETFs
2) Buy the Dream Forever Home - 1.25m, put 200k into Director pension PRSA
or
3) Keep renting, put 350k into Director pension PRSA and put 1.1m in high interest savings (Wise 3.3%),
Going forward put any profits from our businesses into Director pension PRSA
I suppose we are unsure what to do - is it reckless to purchase the forever home now?