# Advice for the New yr



## GETGO (29 Dec 2007)

Age: 26
Spouse’s/Partner's age: 25

Annual gross income from employment or profession: 54,000
Annual gross income spouse:55,000

Type of employment: civil servant

Expenditure pattern: 
Rough estimate of value of home: 485,000
Mortgage on home: 480,000 
2,000/ month between two of us

Mortgage provider:Ulster bank
Type of mortgage: Tracker

Other borrowings – car loans: 9,000 
300/ month

Do you pay off your full credit card balance each month. Yes
If not, what is the balance on your credit card? 

Savings and investments: 9,000 in savings account

Do you have a pension scheme? With work- No supplemental as yet.

Do you own any investment or other property? No

Ages of children: None

Life insurance: 485,000


*What specific question do you have or what issues are of concern to you? *

Wondering what to do with savings? Should I pay off car loan- leaving me with no savings? 
Should I put money into managed investment account- I know nothing about investments?- Evergreen like fund- though is this a bad time ? 
How much should I be aiming to save ?


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## RainyDay (29 Dec 2007)

You will almost certainly save money by paying off the car loan with your savings, as the interest you are paying on the loan probably exceeds the interest you are earning on your savings. Unless it is a fixed rate loan and/or has penalties for early repayment, you should pay it off.

If I were in your shoes, my next priority would be to reduce the mortgage. This isn't an exciting investment, but will put you in a much better position to respond to future life changes (e.g. if you need to move house if/when kids come along).


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## ClubMan (30 Dec 2007)

Also - are you getting the best possible deal on your mortgage and, to a lesser extent, mortgage protection life assurance, home insurance (for the reinstatement cost and not market value of the property), car insurance etc?Is the life assurance of €485K mortgage protection life assurance or general life assurance? If the latter are you sure that you really need it since you have no kids?


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## GETGO (30 Dec 2007)

Thanks so much Rainyday, SPC100 and Clubman. 
Really helpful advice which I'll act on. 

The life assurance is mortgage protection assurance. 

We only have the mortgage 2 years - it was the best deal at the time but this may well have changed. I'll check around see if there are better deals out there. Is there a significant cost associated with switching?

Home insurance is part of our yearly management service fee.


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## CCOVICH (30 Dec 2007)

GETGO said:


> Home insurance is part of our yearly management service fee.



I'd be fairly confident that management fees only cover buildings insurance.  You need separate cover for contents (e.g. TV, DVD player etc.).


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## GETGO (30 Dec 2007)

CCOVICH said:


> I'd be fairly confident that management fees only cover buildings insurance. You need separate cover for contents (e.g. TV, DVD player etc.).


 
Ya that is the case.


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## ClubMan (30 Dec 2007)

GETGO said:


> I'll check around see if there are better deals out there. Is there a significant cost associated with switching?


Some lenders will cover some or all of the costs of switching to them from another lender. Otherwise you will have to pay legal fees.


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