37 year old , just received inheritance where to next?

Cervelo said:
Option B looks more like what I would be thinking and there is another plus your not mentioning, your monthly disposable income will increase by the mortgage amount
Click to expand...

Yes indeed Cervelo , and maybe I could treat myself to a Cervelo S5 (I'm a keen cyclist but not sure I could justify that price!).

The other "problem" is what to do with the extra disposable income each month , maybe the guy that said more money more problems had a very valid point. I do really appreciate how lucky we are to be in this position especially coming from a low income household as a child and still relatively speaking low income household. My hobbies are mostly cheap or free, walking ,cycling ,hiking , so I will struggle (for want of a better phrase) to use any more than necessary. With that in mind I will probably transfer the same amount out to some form of savings account be it for kids future / to cover some emergencies that are unforeseen etc.
 
confsued said:
In regards paying off the mortgage I neglected to mention that our mortgage still qualifies for MIR @ 30% as we bought in 2004. Would this influence the decision to pay off a tracker at 1%?
Click to expand...

Yes, it would certainly be a relevant factor in the decision as your effective mortgage rate (after MIR) is currently only 0.7%. However, we know that MIR is going to phased out on a tapered basis over a three-year period from the end of the current calendar year so I wouldn't give it too much weight. Also, you won't currently find a variable rate deposit account (the only real comparator from a risk perspective) that pays anything like 0.7% after DIRT.

I would also prefer your Option B to Option A. Personally, I would carve ~€20k off each REIT holding and use that sum to buy 5-Year State Savings Certs but we're very much in the realm of personal preferences here.

Ultimately what matters is that you choose a reasonable allocation and then stick with it through thick and thin. If you are not comfortable that you will be able to maintain your allocation in the face of increased market volatility, then you need to think about dialling down the risk exposure.

I wouldn't worry too much about the increased cash flow once the mortgage is gone - I'm sure your kids will find plenty of uses for your additional disposable income!

Best of luck.
 
I would keep circa €50k in cash. Then I'd take the other €320k, invest it in the cheapest MCSI World US ETF that I can find, and forget about it for at least 10 years.
 
You have two small children; bring them on some amazing holidays and create priceless memories that you can share for the rest of your life.
You have a good income, short hours, excellent job security and what sounds like a good quality of life.
You don't need the money for anything in particular so use some of it to make special moments. Try spending €10,000 a year for the next 10 years to take your kids to Disney World, a tour of the Far East, a Safari in Botswana, zip-lining through the canopy of a rain forest in Costa Rica etc..
 
I just want to update this have a mini rant and then close off how it went for me for anyone else in similar situation.
I took a week or two thinking time and myself and wife looked at opinions expressed here which we are very grateful for. We decided first thing was to clear the mortgage and here is where my mini rant is going to come in.

So I rang the bank (I won't name them but one of the main Irish banks) I got my mortgage correspondence out to get the account number , there was a phone number on the side which I rang , I later realised I had rang the number that was for people with trouble paying their mortgage . I cheekily asked what we owed and would the bank be willing to except 90% payment . I know the bank aren't doing deals but hey no harm in asking. His answer both surprised and annoyed me , he said the department he was in and that I had rang was the collections department he said the official bank line is no we are not doing deals but he would take a look at my account. He said to me you have never missed a payment and are not in arrears so your not likely to get a deal. I probed further and said half jokingly " So if I stop paying my mortgage for a few months I'll probably get a good deal?" to which he replied .....Probably so.

It's annoying to think that there is an easy way to cheat the system , myself and my wife well we are not that kind of people , I rang the correct number for mortgages requested to pay it off - a redemption figure was posted out to me and I transferred enough money in to clear it off. It feels great to have it clear , I kept 50k in an instant access account and invested the rest in the stockmarket. I set up a standing order to send half of the money which would have been used to pay the mortgage to go to my stockbroker account and the other half into a savings account which will be used for memorable holidays as Purple suggested.

Thanks again.
 
You are both 37 with a young family and are now mortgage free. You have two young kids and a good though not spectacular income. Basically you are positioned to enjoy a comfortable if not spectacular life. Well done. Enjoy!
 
Well done Confsued. Sometimes the best advise is to do what feels right for yourself and I do hope your life is good. Enjoy and good health to you and your family.
 
This is my all-time favourite thread in here. Feels like a happy ending! Delighted with what you've decided on Confused, enjoy the holidays and the peace of mind that comes with being debt free
 
You must log in or register to reply here.
Menu
Log in
Register