KBC Sivek Global Medium - Advice Needed

R

Runner1

Registered User
Messages
34
Hi,

We are in the fortunate position that we can put childrens allowance for 2 kids into a Savings Account for them each month. However, we are now receiving a rate of 0.0% (EBS Childrens Savings Account) for the savings. Current balance of approx 7K.

Looking to put this towards some sort of investment fund to hopefully at least beat inflation. KBC's Sivek Global Medium Fund is an option. Purely on the basis that I have spoken to them as a result of having the mortgage with KBC.

What are the pros/cons of going down this route versus say a similar type of fund with Irish Life or anyone else.

Any pitfalls for someone new to investing in such funds?

We also have approx 50K sitting on deposit also earning very little interest so would be in a position to do something with a portion of this also.

Thanks in advance.
 

Review Finances Post Mortgage Switch

Age: 36 Spouse’s/Partner's age:33 Annual gross income from employment or profession: 80K (including bonus) Annual gross income of spouse: 50K Monthly take-home pay 5,500 approx Type of employment: Myself - private sector, spouse - public sector In general are you: (b) saving Rough...
www.askaboutmoney.com

You've a mortgage of over 200k.
Why are you looking at investments instead of overpaying mortgage? Guaranteed tax free return.
 
RedOnion said:
Why are you looking at investments instead of overpaying mortgage? Guaranteed tax free return.
Click to expand...

Agreed

Runner

You are borrowing €57k from KBC and probably 3% to put it on deposit at 0%. Think of your children. Pay down your mortgage and increase your wealth.

Brendan
 
Thanks for the replies.

Red Onion - since that previous post, we have had another child and salary has increased to approx 100K.Our mortgage is 2 year fixed @ 2.25% but we can overpay by 10% during that term, so definitely an option to knock some of the capital off.

My thinking around the investment was more around if anything was to happen to either of us in the next 5-10 years, the mortgage would be paid off anyway, so the cash and potential growth would still be available...or is the better approach to use the funds now and not take that morbid risk into account?!
 
Thanks Red Onion, I hadn’t thought of it that way.

so it would seem to make sense to knock the approx 20K off the mortgage during this fixed period (10% of the original amount allowed to be paid off) and then take out some life assurance to cover the piece of mind that the cash gave?It’s likely that we could pay off the mortgage a bit earlier and then could focus on the investment sode

we both have pensions and contribute AVC’s so it was more the mid term goals that I was thinking with the original query, but this approach seems to make more sense!

unless I’m missing something else obvious?!

Runner
 
Runner1 said:
20K off the mortgage during this fixed period (10% of the original amount allowed to be paid off)
Click to expand...
Just remember, you can pay as much as you want. The 10% is just the limit before the check if a break fee applies. Even if a break fee applies, it will ALWAYS be less than the amount of interest you will save.

Check if you have life cover through your pension schemes.

With young children, personally I'd be more worried about having income protection in case either of you cannot work for an extended period. The premium is tax deductible.

Between that and life cover, you'll sleep soundly at night!
 
You must log in or register to reply here.
Back
Top