High income and want to plan for the future

Personally I would wait until all short term debt paid back (45k approx including man fees) which you rightly prioritise, before making any other decisions as your new job is just that - new.
 
Pay back the €45k as quickly as you can. Also your husband needs to seriously think about a pension and also increasing his life insurance cover. Is there life cover for the mortgages?
 
You're too exposed to the property market and you're losing money every month on property 2 despite interest rates being at historically low levels. Also, it's in negative equity. I'd be looking to offload it as soon as possible to remove the risk. It doesn't sound like a good pension plan to me. Pay off your loans (starting with the highest rates) then save as much as you can.
 
Have you factored in the tax you pay on the 2 investment properties into your monthly expenditure?
 
Hi GirlTuesday

You are in a similar situation to a lot of lot of young, high earners. You have a strong monthly cashflow, so there isn't a great need to plan around your money, you have enough of it to service your debt and live your life. Will that always be the case though?

You have young daughter and would like another child. Will they go to private school? What will the demands of having to pay €15,000 in school fees between the two have on you?

No pension plan. You are bringing in €200,000 a year. How will you enjoy life in retirement if you are living on a fraction of that?

With both of you on high incomes, I imagine your jobs are quite demanding. Will there be a time when you want to take some time off work to spend with the kids? I recently worked with a couple who are doing just that. Everything is a rush at the moment so the wife is taking some time off so she can spend time with her kids as they grow up.

You need to be more intentional with your money. Talk about what you want to get out of life, what you want to do. How much will that cost? Then automate your savings. Have money going into saving plan the day after you get paid.



Steven
www.bluewaterfp.ie
 
GirlTuesday said:
Yes I have factored in the tax we pay on both the rental income and freelance income.

I know our exposure to property is high but what is the point off loading now? We are paying down the negative equity. Am I looking at this incorrectly? We've come through some long, difficult years and we just want to figure out what best to do next. Thanks.
Click to expand...

The reasons to offload it:
You're losing money on it every month (~1k?).
You'll be losing more money on it if interest rates rise (might not be soon but it will happen at some point).
You haven't factored maintenance and upkeep into your costs (or have you?).
Hassle of managing property.

If it takes 10 years for the property starting earning you money then you'll have lost somewhere in the region of 100k on it (not an accurate figure :)). Would that money have been better invested elsewhere?
 
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