Personal Details:
Age:
Me:
39
Partner:
38
Employment:
Annual gross income:
Me:
E85,000
Partner:
E75,000
Type of employment:
Me:
Civil Servant
Partner:
Partner had a corporate profession with gross salary at E100,000 (& path upwards from there). Left in 2019 to start a startup company. Company is doing well in terms of customers / market validation and has come through a couple of funding rounds.
Partner owns 60% of the company (remainder is owned by investors + team ESOP).
Whether the company ends up succeeding or not is possibly the biggest variable in partner’s financial future (and mine by extension). The next few years will tell alot - in terms of whether the company is potentially on track for an exit.
If not, then partner may return to the corporate world or try something else.
Pension:
Pension schemes:
Me:
New Entrant Public Service Pension (Defined Benefit)
AVCs (Defined Contribution) 8.4% paid monthly - currently value - Just over E32,000. At least 21 more years until retirement. Possibly 25 more years.
Partner:
Corporate Pension with two companies previously worked with (E30,000/E40,000).
No pension payments in the past five years.
Aims to start payments into pension this year.
Borrowings
2.Repairs/Odds & Ends pa: E1,000
Partner:
Partner:
Savings and investments:
Savings
Investments:
Me:
Marriage:
Planning to marry this year - 2023. While we plan to have our own incomes and expenditures, we already have a joint account for joint expenditure and we would like to merge our assets together and pay the mortgages and expenses together as a couple.
Children:
None - and may not be on the cards for us.
What specific question do you have or what issues are of concern to you?
1.House Renovation/Buy:
As outlined above, my partner has an apartment with a lot of equity in it. I have a house that I purchased in the last few years and I still have more or less the full mortgage owing on it. We would like a bigger house to live in, our forever home. My partner was paying off the mortgage on the apartment with a view to financial security in retirement should the start up company not succeed. However, we now want to either build an extension onto my house or buy a new larger house together.
The options we see are:
We are looking for opinions on:
2. Our Financial Affairs:
In general,
3. Back-up Plan
Partner is realistic about the odds of a start-up succeeding to the point of acquisition (low!). How much should they be paying into pension and is there anything else we should be thinking of as a back out plan. There could be scope to increase salary a little depending on how the next funding round goes (institutional investors generally support this).
Age:
Me:
39
Partner:
38
Employment:
Annual gross income:
Me:
E85,000
Partner:
E75,000
Type of employment:
Me:
Civil Servant
Partner:
Partner had a corporate profession with gross salary at E100,000 (& path upwards from there). Left in 2019 to start a startup company. Company is doing well in terms of customers / market validation and has come through a couple of funding rounds.
2020: gross salary E45,000
2021: gross salary E60,000
2022: gross salary E75,000
Partner owns 60% of the company (remainder is owned by investors + team ESOP).
Whether the company ends up succeeding or not is possibly the biggest variable in partner’s financial future (and mine by extension). The next few years will tell alot - in terms of whether the company is potentially on track for an exit.
If not, then partner may return to the corporate world or try something else.
Pension:
Pension schemes:
Me:
New Entrant Public Service Pension (Defined Benefit)
AVCs (Defined Contribution) 8.4% paid monthly - currently value - Just over E32,000. At least 21 more years until retirement. Possibly 25 more years.
Partner:
Corporate Pension with two companies previously worked with (E30,000/E40,000).
No pension payments in the past five years.
Aims to start payments into pension this year.
Borrowings
- Mortgage:
- E250,000 Mortgage for the past 2 years. 35 yr mortgage at 2.9% fixed rate for 5 more years.(I bought this property and got mortgage in own my own name before we got together)
Property Details:
Size: 2 bed house
Rough Estimate of Value: E300,000
Mortgage remaining: E248,000
Rental income per year: E7,200
Rough annual expenses other than mortgage interest :
1.Home Insurance: E500 pa2.Repairs/Odds & Ends pa: E1,000
Lender: Bank of Ireland
Interest rate: 3% fixed for next 5 years.
Partner:
E113,000 owing on property. (Property now worth E400,000) (bought this property before we got together and got mortgage in own name)
Property Details:
Buy to let property
2 bed apartment
Rough Estimate of Value: E400,000
Mortgage Remaining: E113,000
Rental income per year: E21,000
Rough annual expenses other than mortgage interest :
1.Mortgage Company Fees pa: E3,000
2. Repairs/Odds & Ends pa: E500
Lender: Bank of Ireland
Interest rate: 3% fixed for next 5 years.
- Other borrowings – car loans/personal loans etc
E15,000 Credit Union Loan
Interest Rate: 6.51%
Monthly Payments: E630 taken at salary source & not included in monthly income
Partner:
None
- Credit Cards
Both Paid off fully every month.
Savings and investments:
Savings
Joint Savings of E15,000 (E7,500 each)
In general we are saving E1,600 pm together.
Investments:
Me:
None
Partner:
Crypto:
E2,000
Startup Company:
Partner has shares in the startup company (owns 60%). They were valued in the millions at a couple of investment rounds but would prefer to ascribe a 0% value since not currently liquid and no guarantee they will ever be worth anything.
Marriage:
Planning to marry this year - 2023. While we plan to have our own incomes and expenditures, we already have a joint account for joint expenditure and we would like to merge our assets together and pay the mortgages and expenses together as a couple.
Children:
None - and may not be on the cards for us.
What specific question do you have or what issues are of concern to you?
1.House Renovation/Buy:
As outlined above, my partner has an apartment with a lot of equity in it. I have a house that I purchased in the last few years and I still have more or less the full mortgage owing on it. We would like a bigger house to live in, our forever home. My partner was paying off the mortgage on the apartment with a view to financial security in retirement should the start up company not succeed. However, we now want to either build an extension onto my house or buy a new larger house together.
The options we see are:
- Sell both properties, make about E350,000 profit after the sales (Partner would have some CGT on their house as not living in it last 3 years). Get a joint mortgage of E200,000 to purchase a house rather than renovating the house I currently own.
- Release equity on the apartment to give us about E200,000 for renovations on this house. Then continue to pay the mortgage on this house and the E200, 000 to be paid for by renting it to tenants.
- Sell the apartment and use the E350,000 for renovations and E150,000 in savings.
- Sell my house (Make E50,000ish) and release E400,000 equity on the apartment. Then purchase a house for E450,000 and start again paying off the apartment by renting it to tenants.
We are looking for opinions on:
- What option would be the best both financially and for security in our retirement?
- Anything anyone sees that we should be doing differently?
2. Our Financial Affairs:
In general,
- What should/could we be doing differently?
- Consolidating our finances - any advice.
3. Back-up Plan
Partner is realistic about the odds of a start-up succeeding to the point of acquisition (low!). How much should they be paying into pension and is there anything else we should be thinking of as a back out plan. There could be scope to increase salary a little depending on how the next funding round goes (institutional investors generally support this).
