Age: 31
Spouse’s/Partner's age: 32
Annual gross income from employment or profession: 130k (100k salary with approx 30k in bonus and shares)
Annual gross income of spouse: 50k (took a decent pay decrease recently but long term will be higher)
Monthly take-home pay: not 100% sure but probably between 6-7k combined
Type of employment: e.g. Civil Servant, self-employed: Private sector, partner public sector
In general are you:
saving: Approx 2k/month and partner approx 1k/month
Rough estimate of value of home: 500k
Amount outstanding on your mortgage: 420k with 29 years to go
What interest rate are you paying: 2.8%
We bought our house just under a year ago by taking a 5 year fixed term with Bank of Ireland taking the 3% cashback offer (2% already received and 1% if we see out the fixed term). We overpay the max amount per month allowed, 10%.
I recently enquired about moving from the 2.8% rate (4 years left) to their 2.3% 5 year fixed rate. I worked it out that the savings in interest would be approx 4.5k over the next 4 years and the break fee was about 4.6k. They did say that this rate wasn't available to existing customers but I haven't been able to find anywhere where it says this online, but that's a different story.... Either way, it doesn't make sense to do it currently.
Our plan would be to pay off a large chunk of the mortgage when the fix rate ends or we break. Ideally, we would get to a lower LTV band to avail of lower interest rates, i.e. Avant's lower rates or similar. I'm not one to predict future house values or interest rates but will get the best deal available at the time.
My question is: is this a reasonable course of action or is there a better way I'm not thinking of?
Other borrowings – car loans/personal loans etc: None
My car is 15 years old at the moment so probably will only get another 2-3 out of it before it makes more sense to get another one. I wouldn't take a loan out though, probably buy second hand 3-5 year old car.
Do you pay off your full credit card balance each month? I have a student credit card still but don't use it often but always pay it off when I do
If not, what is the balance on your credit card? N/A
Savings and investments: Approx 60k cash total, this includes: 25k rainy day fund, 10k will come off for wedding which was covid'ed and 5-10k honeymoon in 202X. So free cash is a good bit less than 60k.
Do you have a pension scheme: Approx 40k, I only started working about 4 years ago so this is lower than I'd like. My partner works in public service and also has an PRSA (~25k). They intend to max out contributions each year.
The company I work for give 8% of salary if I contribute 2%, I give an additional 8% via AVC's at payroll. I maxed out 2019 personal contribution limit with a lump sum recently. I plan on doing this every year from now on (the remaining 10%) if circumstances allow. The reason I don't do the full 20% via payroll is
I started a new job and need to decide which fund to invest pension in. Ideally, due to my age, I'd like to invest it in a 100% equity, passive fund with low fees but this isn't open to me. I've 2 options:
1) 100% equities actively managed with expense ratio of 0.56%, I believe it invests in 50 companies, in several sectors, at any one time (or something like that)
2) 70% equities, 15% equity alternatives, 15% bonds, passive fund with expense ratio of 0.31%
I'm not sure which is the best one to pick, any insights would be great!
Do you own any investment or other property?
No other investments. I looked into putting some money into ETFs but due the the high taxes, I think maxing out pension and clearing mortgage would be better but feel free to suggest otherwise.
There's a small chance we would move to where my partner is from in rural Ireland so there is a chance we would buy a house there but not in the medium term.
Ages of children: No children
Life insurance: Mortgage protection, 650k life policy (39 years left) and 4x salary life policy via work. My partner works in public sector so whatever they get, if any.
What specific question do you have or what issues are of concern to you?
I asked some questions throughout that I hope can be answered.
Long term, we'd like to ability to retire early if we choose to do so.
Spouse’s/Partner's age: 32
Annual gross income from employment or profession: 130k (100k salary with approx 30k in bonus and shares)
Annual gross income of spouse: 50k (took a decent pay decrease recently but long term will be higher)
Monthly take-home pay: not 100% sure but probably between 6-7k combined
Type of employment: e.g. Civil Servant, self-employed: Private sector, partner public sector
In general are you:
saving: Approx 2k/month and partner approx 1k/month
Rough estimate of value of home: 500k
Amount outstanding on your mortgage: 420k with 29 years to go
What interest rate are you paying: 2.8%
We bought our house just under a year ago by taking a 5 year fixed term with Bank of Ireland taking the 3% cashback offer (2% already received and 1% if we see out the fixed term). We overpay the max amount per month allowed, 10%.
I recently enquired about moving from the 2.8% rate (4 years left) to their 2.3% 5 year fixed rate. I worked it out that the savings in interest would be approx 4.5k over the next 4 years and the break fee was about 4.6k. They did say that this rate wasn't available to existing customers but I haven't been able to find anywhere where it says this online, but that's a different story.... Either way, it doesn't make sense to do it currently.
Our plan would be to pay off a large chunk of the mortgage when the fix rate ends or we break. Ideally, we would get to a lower LTV band to avail of lower interest rates, i.e. Avant's lower rates or similar. I'm not one to predict future house values or interest rates but will get the best deal available at the time.
My question is: is this a reasonable course of action or is there a better way I'm not thinking of?
Other borrowings – car loans/personal loans etc: None
My car is 15 years old at the moment so probably will only get another 2-3 out of it before it makes more sense to get another one. I wouldn't take a loan out though, probably buy second hand 3-5 year old car.
Do you pay off your full credit card balance each month? I have a student credit card still but don't use it often but always pay it off when I do
If not, what is the balance on your credit card? N/A
Savings and investments: Approx 60k cash total, this includes: 25k rainy day fund, 10k will come off for wedding which was covid'ed and 5-10k honeymoon in 202X. So free cash is a good bit less than 60k.
Do you have a pension scheme: Approx 40k, I only started working about 4 years ago so this is lower than I'd like. My partner works in public service and also has an PRSA (~25k). They intend to max out contributions each year.
The company I work for give 8% of salary if I contribute 2%, I give an additional 8% via AVC's at payroll. I maxed out 2019 personal contribution limit with a lump sum recently. I plan on doing this every year from now on (the remaining 10%) if circumstances allow. The reason I don't do the full 20% via payroll is
I started a new job and need to decide which fund to invest pension in. Ideally, due to my age, I'd like to invest it in a 100% equity, passive fund with low fees but this isn't open to me. I've 2 options:
1) 100% equities actively managed with expense ratio of 0.56%, I believe it invests in 50 companies, in several sectors, at any one time (or something like that)
2) 70% equities, 15% equity alternatives, 15% bonds, passive fund with expense ratio of 0.31%
I'm not sure which is the best one to pick, any insights would be great!
Do you own any investment or other property?
No other investments. I looked into putting some money into ETFs but due the the high taxes, I think maxing out pension and clearing mortgage would be better but feel free to suggest otherwise.
There's a small chance we would move to where my partner is from in rural Ireland so there is a chance we would buy a house there but not in the medium term.
Ages of children: No children
Life insurance: Mortgage protection, 650k life policy (39 years left) and 4x salary life policy via work. My partner works in public sector so whatever they get, if any.
What specific question do you have or what issues are of concern to you?
I asked some questions throughout that I hope can be answered.
Long term, we'd like to ability to retire early if we choose to do so.
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