DarraghK1978
Registered User
- Messages
- 13
Age: 45
Spouse’s/Partner's age: 39 (wife)
Number and age of children: No dependents
I have a 27 year old son from a previous relationship. He’s very gainfully employed, and has recently purchased his own house with his girlfriend.
Income and expenditure
Annual gross income from employment or profession: €120k, annual bonus is usually around €25k.
Annual gross income of spouse: €130k plus bonus of around €20k
Monthly take-home pay
A bit hard to calculate as I’m paid monthly and wife is every four weeks but roughly €11k.
Type of employment: e.g. Civil Servant, self-employed
Both private sector PAYE workers (tech and financial services, but fairly secure and both have been with our companies 10+ yrs)
In general are you:
(a) spending more than you earn, or
(b) saving?
Saving
Summary of Assets and Liabilities
Family home worth c. €930k with remaining mortgage of €410k
Cash of €50k- was higher but used a substantial chunk to reduce mortgage term and get a better rate due to LTV in 2021. Also used a lump sum to gift to my son for a house deposit in 2022.
The €50k is split between €10k in on-demand savings account, and the remainder in a 30 day notice account.
Defined Contribution pension fund: €220k for me, wife’s is a bit over €400k
Company shares : €15k
Shares with Davy of €80k (self-managed and took a dive during Covid and still not fully recovered)
Family home mortgage information
PTSB via UB
2.25%
If fixed, what is the term remaining of the fixed rate?
3.25 years
We’ve been maxing out the overpayments on the fixed term (10% of balance) for the past two years.
Other borrowings – car loans/personal loans etc
None. Have two cars owned outright and won’t need to replace for at least five years.
Do you pay off your full credit card balance each month?
Yes
Other savings and investments:
Do you have a pension scheme?
Yes, both have defined contribution pensions through work. I’m paying 7% + company matches then I’m paying 3% AVC, wife pays 8% plus 2% AVC plus company contribution of 10%.
Do you own any investment or other property?
My wife jointly inherited a property last year which has recently sold. After all taxes and fees, she’ll have just over €400k. She has her eye on a particular home improvement she’s planning from her inheritance which will cost €40k, she’s also planning an extended holiday to her family abroad which will cost around €10k between travel costs and the salary hit (she’s buying back annual leave) so proceeds from inheritance will be €350k.
Other information which might be relevant
Life insurance: Just mortgage cover.
Both have death in benefit in work- me 3.5 x my salary, wife 4 x.
Have illness/income protection through work- both 75%
What specific question do you have or what issues are of concern to you?
Look, I won’t pretend we’re not in a good position. The 2008 crash hit us hard so we’ve spent a lot of time since trying to be as financially savvy as possible, while having a nice life with lots of travel, helping family out etc.
Our aim is to clear down mortgage as soon as we can, start maxing out pensions, and retire early- hopefully in 11 years.
We’ll have €350k left from my wife’s inheritance which will go a very long way towards this aim. I’m conscious that we have a really good interest rate currently thanks to fixing at the right time. Breaking out of the fix wouldn’t cost too much but we think it’d make more sense to invest the €350k for the next 3.25yrs until the fixed rate is up, pay whatever we have then towards the balance, hopefully bringing the outstanding mortgage to <€50k. We could then clear this in under two years by going on to a variable rate (will probably have to remain with PTSB, as unappealing as that is, as unlikely to find another lender who’ll take on such a small mortgage) and overpaying by continuing to service it with the amount we pay monthly now.
We have zero interest in becoming landlords so don’t want to invest in more property. We don’t imagine ever moving house.
Is there anything we’re missing here with this plan? I know that we could put more into pensions now- we added the AVCs in 2020 and want to up those.
Savings are probably a bit low when considered overall but it was worth depleting these to get the best fixed rate we could based on getting the LTV well down. Was also worth it to help my son get well established.
Outside of this, any advice in terms of what I need to speak to a financial advisor about specifically? I would love to have the shares managed by someone who know what they’re doing.
Spouse’s/Partner's age: 39 (wife)
Number and age of children: No dependents
I have a 27 year old son from a previous relationship. He’s very gainfully employed, and has recently purchased his own house with his girlfriend.
Income and expenditure
Annual gross income from employment or profession: €120k, annual bonus is usually around €25k.
Annual gross income of spouse: €130k plus bonus of around €20k
Monthly take-home pay
A bit hard to calculate as I’m paid monthly and wife is every four weeks but roughly €11k.
Type of employment: e.g. Civil Servant, self-employed
Both private sector PAYE workers (tech and financial services, but fairly secure and both have been with our companies 10+ yrs)
In general are you:
(a) spending more than you earn, or
(b) saving?
Saving
Summary of Assets and Liabilities
Family home worth c. €930k with remaining mortgage of €410k
Cash of €50k- was higher but used a substantial chunk to reduce mortgage term and get a better rate due to LTV in 2021. Also used a lump sum to gift to my son for a house deposit in 2022.
The €50k is split between €10k in on-demand savings account, and the remainder in a 30 day notice account.
Defined Contribution pension fund: €220k for me, wife’s is a bit over €400k
Company shares : €15k
Shares with Davy of €80k (self-managed and took a dive during Covid and still not fully recovered)
Family home mortgage information
PTSB via UB
2.25%
If fixed, what is the term remaining of the fixed rate?
3.25 years
We’ve been maxing out the overpayments on the fixed term (10% of balance) for the past two years.
Other borrowings – car loans/personal loans etc
None. Have two cars owned outright and won’t need to replace for at least five years.
Do you pay off your full credit card balance each month?
Yes
Other savings and investments:
Do you have a pension scheme?
Yes, both have defined contribution pensions through work. I’m paying 7% + company matches then I’m paying 3% AVC, wife pays 8% plus 2% AVC plus company contribution of 10%.
Do you own any investment or other property?
My wife jointly inherited a property last year which has recently sold. After all taxes and fees, she’ll have just over €400k. She has her eye on a particular home improvement she’s planning from her inheritance which will cost €40k, she’s also planning an extended holiday to her family abroad which will cost around €10k between travel costs and the salary hit (she’s buying back annual leave) so proceeds from inheritance will be €350k.
Other information which might be relevant
Life insurance: Just mortgage cover.
Both have death in benefit in work- me 3.5 x my salary, wife 4 x.
Have illness/income protection through work- both 75%
What specific question do you have or what issues are of concern to you?
Look, I won’t pretend we’re not in a good position. The 2008 crash hit us hard so we’ve spent a lot of time since trying to be as financially savvy as possible, while having a nice life with lots of travel, helping family out etc.
Our aim is to clear down mortgage as soon as we can, start maxing out pensions, and retire early- hopefully in 11 years.
We’ll have €350k left from my wife’s inheritance which will go a very long way towards this aim. I’m conscious that we have a really good interest rate currently thanks to fixing at the right time. Breaking out of the fix wouldn’t cost too much but we think it’d make more sense to invest the €350k for the next 3.25yrs until the fixed rate is up, pay whatever we have then towards the balance, hopefully bringing the outstanding mortgage to <€50k. We could then clear this in under two years by going on to a variable rate (will probably have to remain with PTSB, as unappealing as that is, as unlikely to find another lender who’ll take on such a small mortgage) and overpaying by continuing to service it with the amount we pay monthly now.
We have zero interest in becoming landlords so don’t want to invest in more property. We don’t imagine ever moving house.
Is there anything we’re missing here with this plan? I know that we could put more into pensions now- we added the AVCs in 2020 and want to up those.
Savings are probably a bit low when considered overall but it was worth depleting these to get the best fixed rate we could based on getting the LTV well down. Was also worth it to help my son get well established.
Outside of this, any advice in terms of what I need to speak to a financial advisor about specifically? I would love to have the shares managed by someone who know what they’re doing.
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