103 months of mortgage remaining but only 40 months of earnings

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Lancealot said:
Just a brief update on the posting of the figures tomorrow. It will be 5.30 pm before I will have all of the information.
Thanks a lot
Click to expand...


This is nearly as exciting as the election result, maybe we will have both sets of information at the same time
 
Lancealot said:
Just a brief update on the posting of the figures tomorrow. It will be 5.30 pm before I will have all of the information.
Thanks a lot
Click to expand...

That's good that you are still working on it. Even compiling the data will be good for you, might give you a clearer picture.
 
moneybox said:
This is nearly as exciting as the election result, maybe we will have both sets of information at the same time
Click to expand...

I hope it means we have a lot of people contributing to the solution. It was an exciting election though, what a mess.
 
  1. Bank loan at 9.983% APR, 58 months, 825€ per month, loan amount 39000€
  2. CU loan at 7.56% APR, 56 months, 420€ per month, amount of outstanding balance 17,000€ ... CU deposit of 3000€
  3. Overdrawn 3800€ @11.89% (Bank)
  4. Credit card uncleared balance 3000€
  5. Mortgage outstanding 211,000€, 3.7%, 104 months remaining
  6. Value of house 410,000€
  7. Lump sum tax free for me 85,000€, yearly pension would be 4,000€
  8. Lump sum wife, would be 60,000€, yearly pension would be circa 4,000€
  9. I would get my state pension at 66.
  10. My wife would get her state pension at 66.
  11. My wife (God bless her) will retire in 3.5 years time as well.
That is it folks in all it's glory.

I hope I have not disappointed anybody!

There are some big numbers in there but also some big words and although the numbers may be frightening it the word
OUTSTANDING that's killing me.

Thanks a lot
 
Hi Lancelot,
Thanks for posting this.
Another useful piece of information is
What is your monthly mortgage payment and how much is interest and how much is capital. It would be useful to make an estimation of how much equity you will have in your house at retirement
 
I don't fully understand the question. Right now I am paying 2300€ per month at the rate mentioned above, I don't know what the value of the house will be in 3.5 years time.
Thanks a lot
 
Everything added up you currently in debt to the tune of €270,800. You have two lump sums to the value of €145,000 in the pipeline that will reduce that debt down to €125,000, that €125,000 euro will be further reduced by you continuing to make your repayments over the next three years.

You will have total combined pensions worth approx €29,000 at retirement, it will be a very tight few years, however, there are ways to bring in an extra few bob, another poster above mentioned the rent a room scheme, it might be well worth considering that idea.

In the meantime would you consider consolidating your loans to avail of better interest interest terms. If God willing you fit and healthy at retirement age, maybe you consider part time work in a different area, taxi driving, or turn some hobby into a money making venture. All in all I don't think you are in dire straits.
 
OK if I may throw in my tupenc worth sell up pay off all loans rent something local while ye are working buy something small down the country for when retire you would be amazed of the value down the country 2 hours outside dublin
 
But, it should be possible to estimate how much capital you will pay in the next three years, and how much the outstanding mortgage will be.
 
Income details
Net monthly Income self Aged 61.5:
Net monthly income partner/spouse Age ????:
€5775

Amount of child benefit received (Should be €130 per child) ?????


Personal circumstances so we can calculate your reasonable living expenses
Number of 12 - 18 years old: ????????????



Home loan
Lender: ???????????
Amount outstanding: €210,000
Value of home:€ 410,000
Interest rate: 3.7% Variable
Monthly repayment €2,300
Term left: 8.5 years
Problem: Only has income for 3.5 years
Balance outstanding at age 65 will be €133K (at which stage most of the payment is capital not interest)


Credit Union
Amount of shares €3000
Amount of loan outstanding €17,000
Interest rate: 7.56%
Monthly repayment € 420
Term left: 56 months (4.6 years)
Balance outstanding at age 65 will be € 5K

Oddly the amortisation table I used said the repayments would be circa 360 a month, but it's the CU and maybe 60 Euro is going into the savings amount. Therefore 60€ by 42 months is an extra 2.5K. And combined with the savings in there of 3K this one is no issue when he retires.



Overdraft - amount outstanding: € 3,800
Interest rate 11.89%
Repayments ???
Balance outstanding at age 65 will be €


Credit Card - € 3,000
Credit Card - monthly amount you are paying ???

Term loan Amount outstanding € 39,000
Term left 58 months (4.6 years)
Monthly repayment € 825
Interest rate 9.983%
Balance outstanding at age 65 will be € 12K

Other savings and investments

Do you expect any lump sums in the medium term future?
Pension lump sum 1 at age 65 € 85,000
Pension lump sum 2 at age 65 € 60,000

Income at age 65 zero for one year - this is a problem

State contributory pension 1
Private pension 1 €4,000
State contributory pension 2
Private pension 2 € 4,000
 
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Lancealot can you answer the following questions:

Need wife's age
Need to know how much each of you are earning separately
Odd the private pensions are so low and exactly the same?
Do employers allow people to stay on one year to get over the appalling lack of income from age 65 to 66
Are your children living at home, what ages, are they working, contribution to the household income
How much is the state contributory pension
Is around 60 Euro of your CU loan not interest but savings each month?
Which bank is your mortgage with
Can you fill in the blanks /????????? in the table I did above
 
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Mortgage 211K will be 133K
Term loan 39K will be 12K
CU 17K will be 0
Overdraft 4K
CC 3K

Total 274K. I'm guessing a lot of the repayments are going on interest. That's a killer.
Looks to me in 42 months time that you will owe 145K. Funnily enough that's exactly what you will have out of the pension lump sums. That's the good news for today

Income and Expenditure

Income 5775
Mortgage plus term loan plus CU = 3545
He said he was paying €3883
So 338 is going to overdraft and CC.
Leaving 1892 for utilities and groceries

Solutions

Mabs
Rent a room
Downsizing
Wife continue working
One year extra working, or more, or another job
Other people in the house contributing.

Comments

That bank loan of 39K is going to cost 10k in interest !
So many debts and such high interest rates, no wonder the bank loves you, an overdraft and a loan and a mortgage and no doubt they supplied the credit card too.
Amazed your loan with the CU is so large relative to your shares
It's a really good thing you have those two private pensions, that's = to 666 Euro a month on top of your state pensions
I used this amortisation table to figure out your loans in 3.5 years/month 42 http://bretwhissel.net/cgi-bin/amortize
I suggest that there is more to this story than meets the eye. Is everybody in the household pulling their weight. Is it a case of the bank of Mum and Dad. Is it a wife abdicating all financial matters to a husband. Is it a case of overspending by somebody.
 
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If what Bronte has posted is correct, the issue I see is how you are going live on the state pension and your own pensions, this from what I can see is going to be considerably less then what you are both earning now. it would be a good idea now, if you are not already to track where you spend all your money so as to give you an idea of what you need to live on because going from a earned income to mainly OAP will be a huge shock to the system unless you are prepared for it.
 

Well he ought to double check my figures, and I've posted a link to an amortisation table.

State pension seems to be 233 per week. Or 1K a month, and his wife is also entitled, so that's 2K. Plus their 8K private pension is 666. Totally monthly is around 2666 therefore. And currently he's living on €1892 without loans. (I presume there is some tax though)

He should be absolutely sure that both of them are entitled to the full contributory pension. And one does have to think about living alone one one's own pension, can be covered if necessary by downsizing.
 
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Agreed, their monthly income would be €2666 but that would be gross, I wouldn't think the tax would be that much but it is still a factor.
Bearing in mind that €2666 is only there after the wife reach's the retirement age, this is something we don't know
It would seem from their OD and CC that €1892 is not enough to live on each month but more info is needed.
I understand completely the wife's idea of retiring with her husband but the financial consequences of this decision might need further thought
Also to bear in mind there are changes to the OAP entitlement supposed to be coming in 2020, I doubt this will effect the wife's entitlement but no harm in double checking.
 
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moneybox said:
You will have total combined pensions worth approx €29,000 at retirement
Click to expand...

On this point we will not be 65 together and if I understand the figures it looks as if I will be retiring on my own.

Thank you all ... I see I have quite a bit of work to do yet to bring some kind of shape to a possible solution. Please bear with me and I will clean up some of the requests for you.
I will update figures, missing and anomalous figures, when the fog lifts ... Thanks a lot
 
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