Advice for the future - early retirement in mind!

[triplej]

Id still stick with my earlier advice.

-Pay off car loan with cash.
-switch future savings to mostly cash (to build up for college fees).
-investigate if you can buy back years to be ready for earlier retirement.

But I'd add consider switching the rental to somewhere your kids could use during college.

Thanks SPC, I agree with you!

My plan, I am going to pay down the car loan with immediate effect and divert the savings into cash.
I have an investment product set to mature early next year which should allow my to clear off the investment mortgage. When combined with the savings from the car loan this will effectively amount to another €1000/month in saving. All going into cash savings (perhaps some into the 5-year saving scheme as suggested by Sarenco).
I will investigate the buying back of years to determine if its efficient for me personally also.

Thanks again. TJ

 

[Gordon Gekko]

You are so right.
I did just that and came up with a figure of €40K per year that I wont be paying once Mortgage, Investment mortgage, insurances, childcare, petrol and a few other little things are stopped. And I could go higher than that by getting rid of one car and cutting my remaining monthly savings amount if i had to. I couldnt believe it.

Tell me about it! €85k was the number I came up with.

 

[Allpartied]

Just a word on your predicted costs for college years. I think it's a little high.

My eldest daughter has just completed first year in Dublin.

3000 euros for registration and 4500 euros for accomodation ( shared room).

Travel cost about 100 euros a month, so add on 800 ( although the Covid crisis reduced that this year).

Laptop was 400 euros. It's a one off cost, so split by four to give an annual amount of 100 euros.
That makes 8400 per year. If they don't go to Dublin, probably, cheaper.

Now, there are all sorts of other expenses, clothing, food, going out, phones and the rest. But there is a thing called growing up and, even though it seems impossible to imagine when they are 10 or 11, it will happen and then they will be able to earn their own money.
If they get a summer job and, maybe , a weekend job they can, easily , pull in 4 or 5k per year. This is a great way to learn the value of money, the budgeting of money, develop a hugely important skill set which will set them up for adult life. Plus, it increases your pension pot.


So 9k a year would be plenty, which would save you 36k on your planned expenses for college.

 

[OMG_OMG]

Just a word on your predicted costs for college years. I think it's a little high.

My eldest daughter has just completed first year in Dublin.

3000 euros for registration and 4500 euros for accomodation ( shared room).

Travel cost about 100 euros a month, so add on 800 ( although the Covid crisis reduced that this year).

Laptop was 400 euros. It's a one off cost, so split by four to give an annual amount of 100 euros.
That makes 8400 per year. If they don't go to Dublin, probably, cheaper.

Now, there are all sorts of other expenses, clothing, food, going out, phones and the rest. But there is a thing called growing up and, even though it seems impossible to imagine when they are 10 or 11, it will happen and then they will be able to earn their own money.
If they get a summer job and, maybe , a weekend job they can, easily , pull in 4 or 5k per year. This is a great way to learn the value of money, the budgeting of money, develop a hugely important skill set which will set them up for adult life. Plus, it increases your pension pot.


So 9k a year would be plenty, which would save you 36k on your planned expenses for college.

If my classmates at uni were anything to go by, the kids will be pretending they didnt get theoir grants, and getting part time jobs, while telling you that they are so busy studying that they havent time for a job, while batting thier eyelids and holding the hand out to you

 

[triplej]

Just a word on your predicted costs for college years. I think it's a little high.

My eldest daughter has just completed first year in Dublin.

3000 euros for registration and 4500 euros for accomodation ( shared room).

Travel cost about 100 euros a month, so add on 800 ( although the Covid crisis reduced that this year).

Laptop was 400 euros. It's a one off cost, so split by four to give an annual amount of 100 euros.
That makes 8400 per year. If they don't go to Dublin, probably, cheaper.

Now, there are all sorts of other expenses, clothing, food, going out, phones and the rest. But there is a thing called growing up and, even though it seems impossible to imagine when they are 10 or 11, it will happen and then they will be able to earn their own money.
If they get a summer job and, maybe , a weekend job they can, easily , pull in 4 or 5k per year. This is a great way to learn the value of money, the budgeting of money, develop a hugely important skill set which will set them up for adult life. Plus, it increases your pension pot.


So 9k a year would be plenty, which would save you 36k on your planned expenses for college.

Thanks Allparties. That's good to hear! Dublin would be the most likely option for college (there are other's .. not too far away). I'm aware that a lot of the estimates on costs of going to college, running a car, running a home are often inflated by vested interests but am trying to break the habit of a lifetime and planning prudently for the future.

I would prefer to have a holiday slush fund left over after they are done than be stuck for the money when they need it most!! That's the point I'll be telling them I'm off to spend their inheritance and I'll mean it too!!

OMG OMG
If my classmates at uni were anything to go by, the kids will be pretending they didnt get theoir grants, and getting part time jobs, while telling you that they are so busy studying that they havent time for a job, while batting thier eyelids and holding the hand out to you

That's what worries me....I was that classmate!!

 

[triplej]

Just a word on your predicted costs for college years. I think it's a little high.

My eldest daughter has just completed first year in Dublin.

3000 euros for registration and 4500 euros for accomodation ( shared room).

Travel cost about 100 euros a month, so add on 800 ( although the Covid crisis reduced that this year).

Laptop was 400 euros. It's a one off cost, so split by four to give an annual amount of 100 euros.
That makes 8400 per year. If they don't go to Dublin, probably, cheaper.

Now, there are all sorts of other expenses, clothing, food, going out, phones and the rest. But there is a thing called growing up and, even though it seems impossible to imagine when they are 10 or 11, it will happen and then they will be able to earn their own money.
If they get a summer job and, maybe , a weekend job they can, easily , pull in 4 or 5k per year. This is a great way to learn the value of money, the budgeting of money, develop a hugely important skill set which will set them up for adult life. Plus, it increases your pension pot.


So 9k a year would be plenty, which would save you 36k on your planned expenses for college.

Sorry made a mess of the previous response...D'oh!
Thanks Allparties. That's good to hear! Dublin would be the most likely option for college (there are other's .. not too far away). I'm aware that a lot of the estimates on costs of going to college, running a car, running a home are often inflated by vested interests but am trying to break the habit of a lifetime and planning prudently for the future.

I would prefer to have a holiday slush fund left over after they are done than be stuck for the money when they need it most!! That's the point I'll be telling them I'm off to spend their inheritance and I'll mean it too!!