silvergrove
Registered User
- Messages
- 18
Age: 48
Spouse’s/Partner's age: 47
Annual gross income from employment or profession: 75,000
Annual gross income of spouse: 6,000 average (variable can be up to 10,000)
Monthly take-home pay: 4,000 approx
Type of employment: Public servant
Saving money every month
Rough estimate of value of home: 350k
Amount outstanding on your mortgage: 0
Other borrowings – no other borrowings
Do you pay off your full credit card balance each month? Yes
Savings and investments: 100k in prize bonds (recent inheritance)
Do you have a pension scheme? Yes: Public service pension ; post 1995 entrant ; planning to retire at around 60 with full pension (minus state pension until age 66). Am paying notional service but have not maxed out pension contributions (approx. 12k (gross) more can be invested each year).
Do you own any investment or other property? No
Ages of children: 8 and 6
Life insurance: Yes - through work
We are in a very lucky position. I would like pass some of this luck to our kids and invest now for 2nd house for children.
I have 100k to invest right now and i have scope to add an AVC to my pension (approx. 12k gross (7k net) per year up to revenue limits).
I don't think we need AVC for our day to day living post retirement (rather thinking to pass it as ARF to kids - please see below).
I understand my wife and kids are entitled to a fraction of my pension if i die (my wife entitled to half, my kids to 1/6 depending on ages) and that is a risk which can mitigated by AVC pension.
I was looking at these options (don't know which is best or if there are better ones)
1) max AVC pension contributions ( even though i will likely be on higher tax bracket when i retire at age 60 due to either supplementary pension from work/ jobseeker benefit/ staying on at work for 1 day a week) and transfer PRSA to ARF which can then be passed to my wife and ultimately my children (after 30% tax) when we both die. Invest 100k lumpsum in property/shares now.
2) forget about AVC and instead invest 7k per year (net) plus 100k lumpsum in shares/property to build nest egg for kids.
All advice appreciated.
thank you very much
silvergrove
Spouse’s/Partner's age: 47
Annual gross income from employment or profession: 75,000
Annual gross income of spouse: 6,000 average (variable can be up to 10,000)
Monthly take-home pay: 4,000 approx
Type of employment: Public servant
Saving money every month
Rough estimate of value of home: 350k
Amount outstanding on your mortgage: 0
Other borrowings – no other borrowings
Do you pay off your full credit card balance each month? Yes
Savings and investments: 100k in prize bonds (recent inheritance)
Do you have a pension scheme? Yes: Public service pension ; post 1995 entrant ; planning to retire at around 60 with full pension (minus state pension until age 66). Am paying notional service but have not maxed out pension contributions (approx. 12k (gross) more can be invested each year).
Do you own any investment or other property? No
Ages of children: 8 and 6
Life insurance: Yes - through work
We are in a very lucky position. I would like pass some of this luck to our kids and invest now for 2nd house for children.
I have 100k to invest right now and i have scope to add an AVC to my pension (approx. 12k gross (7k net) per year up to revenue limits).
I don't think we need AVC for our day to day living post retirement (rather thinking to pass it as ARF to kids - please see below).
I understand my wife and kids are entitled to a fraction of my pension if i die (my wife entitled to half, my kids to 1/6 depending on ages) and that is a risk which can mitigated by AVC pension.
I was looking at these options (don't know which is best or if there are better ones)
1) max AVC pension contributions ( even though i will likely be on higher tax bracket when i retire at age 60 due to either supplementary pension from work/ jobseeker benefit/ staying on at work for 1 day a week) and transfer PRSA to ARF which can then be passed to my wife and ultimately my children (after 30% tax) when we both die. Invest 100k lumpsum in property/shares now.
2) forget about AVC and instead invest 7k per year (net) plus 100k lumpsum in shares/property to build nest egg for kids.
All advice appreciated.
thank you very much
silvergrove
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