Personal details
Age: 31
Spouse’s/Partner's age: 30
Number and age of children: N/A
Income and expenditure
Annual gross income from employment or profession: €75k + c.10% bonus (private)
Annual gross income of spouse: €30k (public)
Generally save €1-1.5k p/m
Summary of Assets and Liabilities
Family home worth €350k with a €200k mortgage
Cash of €65k
Shares : €2k
Family home mortgage information
Lender: EBS
Interest rate: 2.1%
If fixed, what is the term remaining of the fixed rate? 3.5 years
Other borrowings – car loans/personal loans etc
N/A
Buy to let properties
N/A
Other savings and investments:
Do you have a pension scheme? DC scheme (5% contribution from employer & recently upped my contribution to 20%)
Other information which might be relevant
Life insurance: Basic mortgage protection insurance.
What specific question do you have or what issues are of concern to you?
Our plan is to build up our cash savings to be in a position to buy a new home (c. €450-€500k) in 5-10 years without having to sell our existing home (to avoid being in a chain). We would then evaluate whether we would sell the original house or try let it out (aware of the difficulties facing landlords). With our current rate of saving’s we should be in a position to have the 20% deposit in the next few years even allowing for savings to take a hit if/when we have kids.
Earlier this year I started drip feeding money (c. €200/m) into an all-world ETF via online broker. The plan is to continue investing each month and leave the money for 5 – 10 - 15 – 20 years depending on our needs. While I’m tracking each purchase, I may decide to sell on the 8th anniversary, pay tax on any profits and reinvest soon after to avoid the complications of deemed disposal – while it may not be optimal, I think it is still a reasonable approach to diversify without too much hassle.
I thought about using existing cash savings to purchase an investment property, which we could then sell to get the deposit of our next house, but given we want to avoid being in a chain, the difficulties that landlords face & the potential short time frame (5 years), I believe keeping most of our savings as cash is our best option (even if it is frustrating to see its purchasing power diminish due to inflation).
Specific questions:
1) Does the above plan seem sensible?
2) Are we missing anything or is there anything else we could be doing better to maximise our position?
Age: 31
Spouse’s/Partner's age: 30
Number and age of children: N/A
Income and expenditure
Annual gross income from employment or profession: €75k + c.10% bonus (private)
Annual gross income of spouse: €30k (public)
Generally save €1-1.5k p/m
Summary of Assets and Liabilities
Family home worth €350k with a €200k mortgage
Cash of €65k
Shares : €2k
Family home mortgage information
Lender: EBS
Interest rate: 2.1%
If fixed, what is the term remaining of the fixed rate? 3.5 years
Other borrowings – car loans/personal loans etc
N/A
Buy to let properties
N/A
Other savings and investments:
Do you have a pension scheme? DC scheme (5% contribution from employer & recently upped my contribution to 20%)
Other information which might be relevant
Life insurance: Basic mortgage protection insurance.
What specific question do you have or what issues are of concern to you?
Our plan is to build up our cash savings to be in a position to buy a new home (c. €450-€500k) in 5-10 years without having to sell our existing home (to avoid being in a chain). We would then evaluate whether we would sell the original house or try let it out (aware of the difficulties facing landlords). With our current rate of saving’s we should be in a position to have the 20% deposit in the next few years even allowing for savings to take a hit if/when we have kids.
Earlier this year I started drip feeding money (c. €200/m) into an all-world ETF via online broker. The plan is to continue investing each month and leave the money for 5 – 10 - 15 – 20 years depending on our needs. While I’m tracking each purchase, I may decide to sell on the 8th anniversary, pay tax on any profits and reinvest soon after to avoid the complications of deemed disposal – while it may not be optimal, I think it is still a reasonable approach to diversify without too much hassle.
I thought about using existing cash savings to purchase an investment property, which we could then sell to get the deposit of our next house, but given we want to avoid being in a chain, the difficulties that landlords face & the potential short time frame (5 years), I believe keeping most of our savings as cash is our best option (even if it is frustrating to see its purchasing power diminish due to inflation).
Specific questions:
1) Does the above plan seem sensible?
2) Are we missing anything or is there anything else we could be doing better to maximise our position?