Money is money. You get tax relief on it up to a certain percentage of your salary.
You are just moving money from a Deposit Account into a pension fund and getting tax relief on the way in. It seems clear to me.
Creemegg we are all agreed I think that the money on deposit is wasted. Just sitting there making zero and losing due to inflations. So you've 3 options so far:
1. Put it into your pension
2. Pay off some of your mortgages
3. Buy 5 blue chip shares
For the pension option, which I wouldn't understand, one would need to have calculations to see how it works before making a decision. But I do agree totally that a pension is a really good idea.
For the mortgages, Burgess and others think this is not a good idea as the money is so cheap, you'll have equity in one property and eventually in 3 properties, seems logical enough
In relation to the shares, I note that Michael Smurfit lost out all his pension on these.
You have to spend some cash now on:
1. Car loan
2. New car (from other thread)
You have to keep some for:
1. Emergency fund
2. Low amount in a good savings product
3. Enough for year 1, or year 1 to 3 of college expenses
Might be an idea to do a table for the college expenses so that you know per year how much you will need.
Your single biggest expenditure will be the college fees, but it's not a worry because
a) you have it in cash
b) you have it in one house which is fully owned
Your most important other money problem is how to fund retirement
a) state pension X 2
b) private pension
c) rental income
d) shares