menlo_ie
Registered User
- Messages
- 4
Age: 37
Spouse’s/Partner's age: N/A
Annual gross income from employment or profession: €240k (90k salary + bonus + shares)
Annual gross income of spouse: N/A
Monthly take-home pay: ~€3,600
(a good chunk goes toward share purchase scheme and pension AVCs)
Type of employment: Private sector
In general are you: saving
Rough estimate of value of home: €260k
Amount outstanding on your mortgage: 17k
What interest rate are you paying? 2.75% (LTV Var <=50%)
Other borrowings – car loans/personal loans etc: None
Do you pay off your full credit card balance each month? No credit card
Savings and investments:
€40k cash
€20k Irish Life Investment plan (€160 per month)
€10k Revolut investments (mix of 10 diverse stocks)
€70k Sellable company shares
Do you have a pension scheme? Yes
Current value €104k
Monthly contribution: €1457 (including 7% employer matching contribution and 6% AVCs)
I recently made a single premium contribution of €10k (to avail of 4k tax refund)
Do you own any investment or other property? No
Ages of children: No
Life insurance: Yes
What specific question do you have or what issues are of concern to you?
I'm well aware that I'm in a very privileged position at my age and lucky to be earning well. I have mainly benefited from the company performing well over the last few years giving me good returns from RSU stock. While I like my job right now, I have no intentions of working this profession to retirement. I'll end up wealthy and very bored with life. I'm currently re-training on an outdoor pursuit I thoroughly enjoy and while some will say I'm mad, I'm planning to transition away from office life to give it a proper go. The goal is to be flying solo by 40 (metaphor, I'm not becoming a pilot). I'll need land which means selling up my existing PPR and purchasing a new home with the land. With the proceeds from my PPR sale I'd expect to supplement the new property in the region of 100k and then there are start up costs for the new venture of about €50k. Obviously I need to think about future security and worst case scenarios but I feel I'm approaching this sensibly and not making any impulsive decisions. If I plan and execute with care, I can make this a successful transition allowing room for failure (and there will some).
The primary goal for me over the last few years was to minimise debt and I think I've done well there having the mortgage almost paid off and no other debt. I've been paying lump sums every 6 months as shares vest. I'm intending to make the final mortgage lump sum payment by Spring 2021 and that leaves me in a great position to maximise my pension and savings over the next 2 years for the new road ahead.
My question is how to optimise my finances over the next 2 years in order to minimise risk and give myself a good buffer to start with. My goal is to have a fund of 350-400k in 2 years time with zero debt and a mortgage-less PPR . My current income alone (assuming no major stock crashes) should have me quite close but what can I do to capitalise on this meanwhile and have it work for me a little bit. I'm not willing to take any huge risks on this. I know cash in the bank is not building wealth but I will also need to be able to move quickly when the right property come up. Ideally I can time it to sell my home at the same time to avoid a pointless 2nd mortgage to cover the purchase of a new property. On pension, I have estimated my fund will be worth €170k in 2 years time based on current trajectory and I plan to keep making payments into it to this albeit much reduced which is why I want to ensure I can maximise payments now while I can.
Thanks all in advance!
Spouse’s/Partner's age: N/A
Annual gross income from employment or profession: €240k (90k salary + bonus + shares)
Annual gross income of spouse: N/A
Monthly take-home pay: ~€3,600
(a good chunk goes toward share purchase scheme and pension AVCs)
Type of employment: Private sector
In general are you: saving
Rough estimate of value of home: €260k
Amount outstanding on your mortgage: 17k
What interest rate are you paying? 2.75% (LTV Var <=50%)
Other borrowings – car loans/personal loans etc: None
Do you pay off your full credit card balance each month? No credit card
Savings and investments:
€40k cash
€20k Irish Life Investment plan (€160 per month)
€10k Revolut investments (mix of 10 diverse stocks)
€70k Sellable company shares
Do you have a pension scheme? Yes
Current value €104k
Monthly contribution: €1457 (including 7% employer matching contribution and 6% AVCs)
I recently made a single premium contribution of €10k (to avail of 4k tax refund)
Do you own any investment or other property? No
Ages of children: No
Life insurance: Yes
What specific question do you have or what issues are of concern to you?
I'm well aware that I'm in a very privileged position at my age and lucky to be earning well. I have mainly benefited from the company performing well over the last few years giving me good returns from RSU stock. While I like my job right now, I have no intentions of working this profession to retirement. I'll end up wealthy and very bored with life. I'm currently re-training on an outdoor pursuit I thoroughly enjoy and while some will say I'm mad, I'm planning to transition away from office life to give it a proper go. The goal is to be flying solo by 40 (metaphor, I'm not becoming a pilot). I'll need land which means selling up my existing PPR and purchasing a new home with the land. With the proceeds from my PPR sale I'd expect to supplement the new property in the region of 100k and then there are start up costs for the new venture of about €50k. Obviously I need to think about future security and worst case scenarios but I feel I'm approaching this sensibly and not making any impulsive decisions. If I plan and execute with care, I can make this a successful transition allowing room for failure (and there will some).
The primary goal for me over the last few years was to minimise debt and I think I've done well there having the mortgage almost paid off and no other debt. I've been paying lump sums every 6 months as shares vest. I'm intending to make the final mortgage lump sum payment by Spring 2021 and that leaves me in a great position to maximise my pension and savings over the next 2 years for the new road ahead.
My question is how to optimise my finances over the next 2 years in order to minimise risk and give myself a good buffer to start with. My goal is to have a fund of 350-400k in 2 years time with zero debt and a mortgage-less PPR . My current income alone (assuming no major stock crashes) should have me quite close but what can I do to capitalise on this meanwhile and have it work for me a little bit. I'm not willing to take any huge risks on this. I know cash in the bank is not building wealth but I will also need to be able to move quickly when the right property come up. Ideally I can time it to sell my home at the same time to avoid a pointless 2nd mortgage to cover the purchase of a new property. On pension, I have estimated my fund will be worth €170k in 2 years time based on current trajectory and I plan to keep making payments into it to this albeit much reduced which is why I want to ensure I can maximise payments now while I can.
Thanks all in advance!
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