Age: 43
Spouse’s/Partner's age: 45
Annual gross income from employment or profession:
PAYE: 105,000
Sole Trader: €13000
Spouse: Housewife / Rent a Room: €8000 (8 months)
The Sole trader income in only just starting now and I am not using this income in day to day spending as yet. I anticipate the Sole Trader income to increase over the next year and this will replace (albeit less after tax) the RaR income which is currently only done to cover all the various kid’s activities.
Monthly take-home pay: PAYE €4500 + ST €600 / RAR €1000
Type of employment: Private + Sole Trader
In general are you: SAVING
Rough estimate of value of home: €500,000
Amount outstanding on your mortgage: €180,000
What interest rate are you paying? 0.6%
Do you pay off your full credit card balance each month? yes
Other borrowings – car loans/personal loans etc. Car loan 1.7% 425 p.m - 2 more years
Savings and investments: €16,500 rainy day cash – Saving 1000p.m on average – I plan to redirect this into the mortgage now the rainy day fund is established. Car loan completes in 2 years freeing up money to add to the fund if needed.
Company pension. I pay in 20% Company Pays 14% Value
Current value: 360K (contributions = 27.5k per annum)
Spouse: 190K (no longer contributing)
Do you own any investment or other property? no
Ages of children: 11, 9, 6
Life insurance: Yes, both Mortgage protection and also main company provided
What specific question do you have or what issues are of concern to you?
I believe we are very well positioned, and by diverting the monthly savings into the mortgage, we will pay this off in 7 years. We have no desire to move again. Also by this point I anticipate our combined Pensions to be worth roughly €1m (with an estimated 4% annual growth).
Ideally at 50, when mortgage free with a decent pension pot I can consider retiring from the PAYE career role. The aim is to be ready at 50, with the plan to assess at that point if feasible. The pensions can then grow slowly as we move it to less risky investments without additional contributions until we are 60 when we would look to draw down.
If my spouse could go permanent in a Part time role, this along with my sole trader income, the relative take home difference as I see it, thanks to additional tax allowances, is not that great. 1 income of €100k Vs 2 inc on €20k – I believe we could both earn 20k and monthly take home would be around €3k – which will provide for our spending cover between age 50-60.
This is my 7 year plan, which on paper/in my head all seems reasonable. IS MY LOGIC SOUND or are there flaws/area’s I may not have considered?
The main unknown variable for me as I see it is the increasing costs for the kids as they get older Clothes/Entertainment/School/University. They will be at College Age as I hit 50 and the mortgage is cleared. At which point I guess assuming they all go, instead of retiring from the day job I’ll need to work from 4-9 more years with the mortgage payments being diverted to cover college fees.
Thanks in advance for any insight / probing questions. Even as I typed this up it was a help as I questioned why I don't divert the savings first to the Car loan - must check the option of early repayment there..
50+Out
Spouse’s/Partner's age: 45
Annual gross income from employment or profession:
PAYE: 105,000
Sole Trader: €13000
Spouse: Housewife / Rent a Room: €8000 (8 months)
The Sole trader income in only just starting now and I am not using this income in day to day spending as yet. I anticipate the Sole Trader income to increase over the next year and this will replace (albeit less after tax) the RaR income which is currently only done to cover all the various kid’s activities.
Monthly take-home pay: PAYE €4500 + ST €600 / RAR €1000
Type of employment: Private + Sole Trader
In general are you: SAVING
Rough estimate of value of home: €500,000
Amount outstanding on your mortgage: €180,000
What interest rate are you paying? 0.6%
Do you pay off your full credit card balance each month? yes
Other borrowings – car loans/personal loans etc. Car loan 1.7% 425 p.m - 2 more years
Savings and investments: €16,500 rainy day cash – Saving 1000p.m on average – I plan to redirect this into the mortgage now the rainy day fund is established. Car loan completes in 2 years freeing up money to add to the fund if needed.
Company pension. I pay in 20% Company Pays 14% Value
Current value: 360K (contributions = 27.5k per annum)
Spouse: 190K (no longer contributing)
Do you own any investment or other property? no
Ages of children: 11, 9, 6
Life insurance: Yes, both Mortgage protection and also main company provided
What specific question do you have or what issues are of concern to you?
I believe we are very well positioned, and by diverting the monthly savings into the mortgage, we will pay this off in 7 years. We have no desire to move again. Also by this point I anticipate our combined Pensions to be worth roughly €1m (with an estimated 4% annual growth).
Ideally at 50, when mortgage free with a decent pension pot I can consider retiring from the PAYE career role. The aim is to be ready at 50, with the plan to assess at that point if feasible. The pensions can then grow slowly as we move it to less risky investments without additional contributions until we are 60 when we would look to draw down.
If my spouse could go permanent in a Part time role, this along with my sole trader income, the relative take home difference as I see it, thanks to additional tax allowances, is not that great. 1 income of €100k Vs 2 inc on €20k – I believe we could both earn 20k and monthly take home would be around €3k – which will provide for our spending cover between age 50-60.
This is my 7 year plan, which on paper/in my head all seems reasonable. IS MY LOGIC SOUND or are there flaws/area’s I may not have considered?
The main unknown variable for me as I see it is the increasing costs for the kids as they get older Clothes/Entertainment/School/University. They will be at College Age as I hit 50 and the mortgage is cleared. At which point I guess assuming they all go, instead of retiring from the day job I’ll need to work from 4-9 more years with the mortgage payments being diverted to cover college fees.
Thanks in advance for any insight / probing questions. Even as I typed this up it was a help as I questioned why I don't divert the savings first to the Car loan - must check the option of early repayment there..
50+Out
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