Anything I Could be Doing Better

S

supe

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Personal details

Age: 47
Spouse’s/Partner's age: 48

Number and age of children: 2 Children - 6 & 11

Income and expenditure
Annual gross income from employment or profession: €110,000 per annum
Annual gross income of spouse: None

Monthly take-home pay: €5,300

Type of employment: e.g. Civil Servant, self-employed

In general are you:
(a) spending more than you earn, or
(b) saving? Saving ~ €2,000/month

Summary of Assets and Liabilities

Family home worth €350,000 with no mortgage
Investment property 1 worth €400,000 with €85,000 mortgage (ECB tracker mortgage + 1.05%)
Investment property 2 worth €125,000 with no mortgage
Investment property 3 worth €120,000 with no mortgage
Cash of €100,000 (sitting in bank earning zero)
Investment in ETF's of €50,000

Other borrowings – car loans/personal loans etc

No borrowings other than balance mortgage on investment property 1 (€85,000)

Buy to let properties
Value: €645,000
Rental income per year: €3,750 x 12 = €45,000

Other savings and investments:

Do you have a pension scheme? Yes Employer paying 10% of salary and I'm paying 5% of salary. Only joined recently so pension pot currently worth approximately €20,000

Other information which might be relevant

Life insurance: Life Insurance of €1,000,000 costing approximately €265.00/month


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

I have some assets and some savings that I would like to use to work harder for me to allow me to be a bit more flexible rather than having to work a 50hr week in a job that I don't enjoy as is currently the case. Just don't know if there is anything better I could be doing to make my assets/money work better. Any advise or suggestions would be greatly appreciated.
 
First thing that jumps out to me is that rental income seems very low for 3 properties?
 
LLB123 said:
First thing that jumps out to me is that rental income seems very low for 3 properties?
Click to expand...
Hi.
Property 1 in Dublin at €2,000 per month
Property 2 in the country at €1,000 per month
Property 3 in the country at €750 per month
 
I’d use my savings to clear the mortgage.

I’d start maximising my AVCs.

I’d keep no more than 6 months’ household expenditure in cash.
 
supe said:
I have some assets and some savings that I would like to use to work harder for me to allow me to be a bit more flexible rather than having to work a 50hr week in a job that I don't enjoy as is currently the case.
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You have net household assets of a million euros! You have ample time to retrain as whatever you want and target a wage of €50k in a career that pleases you.

If you don’t want to do that there is some financial fine tuning you can do. But no point fiddling at the edges until you’ve decided on the big questions.
 
As others have advised max AVCs in one off payment, this can then be used to reduce your rental tax bill.
 
supe said:
Hi.
Property 1 in Dublin at €2,000 per month
Property 2 in the country at €1,000 per month
Property 3 in the country at €750 per month
Click to expand...

Gotcha. Given current market buoyancy, rising interest rates and increasingly restrictive landlord registration, I'd be inclined to sell property three and use the cash from this to pay off property one.
 
The properties are going to provide you with a good regular income if you keep them to retirement. The "traditional" pension is underfunded, but then you have no mortgage on your home and 3 investment properties with just €85k of debt, so it's not as if you are starting from scratch.

What I would do is look around for a job that you enjoy doing instead of staying in a place that you hate.
 
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