Hi,
Age: 54
Spouse Age: 51
Children: 1, Age 17 with 2 years remaining in secondary school and hopefully college after that for 4 or 5 years.
I cut back from a demanding and stressful job about a year ago paying €150K per year due to long hours. I now work 2 days a week on a contract basis which pays €600 per day. This contract role now grosses about €60k per year based on a two day week. The company I contract with has indicated that they wish to continue rolling over my contract on an annual basis.
My spouse is a full time mother and does not currently work outside the home.
The following is our financial status:
Own Home Value €800,000, no mortgage.
Buy to Let Investments :
Property 1:
Value €300,000
Mortgage €43,000 remaining over 5 years. Monthly Repayment €850 (including insurance)
Monthly Rent: €1,300
Property 2:
Value €230,000
Mortgage €0
Monthly Rent:€1,900 net of management fees
Property 3:
Value €250,000
Mortgage €0
Monthly Rent: €1,800 net of management fees
Total unearned income from invetsment property, after tax would be approximately €3,000 per month.
The above valuations are very conservative, may be worth an additional +10% in the current strong market.
All properties have been recently refurbished and no known repair jobs due, they are located in areas of strong rental demand with a good spread between private sector and public sector (near hospital, university and large established industrial estate).
AMRF (Pension Value): €700,000
Additional Cash (savings) In Bank €530,000... earning nothing, concerned about puting a large deposit amount into a non-bricks and mortar / digital bank.
2 x Cars with combined value of about €70,000, neither of which need to be updated for the next 3 or 4 years hopefully. Expect to retain just 1 car after next 3 or 4 years. No loans or outstanding finance.
Apart from €43K owing on 1 investment property, no other loans or finance.
Credit Cards are normally paid off each month.
My concern is that with almost 50% of my AMRF in equities, and with 3 x rental properties, I am already quite exposed to both equities and property despite most of the property producing income. As, my current contract role does not allow me to actively trade stocks and shares, while I understand P/E ratios, I don't actively follow the markets so consider myself as having negligable knowledge of this domain. My comfort zone is to go and purchase another rental property (with all the risks that exposes us to…. have been dealing with tenant and PRTB issues for more than 10 years so am well versed in the risks before anyone responds in all caps).
I am focused on quitting contract work next year (simply fed up paying such high rates of tax on hard earned income). Have plenty of non work related hobbies, interests and friends. However, I need a level of replacement income from other sources rather than just depleting cash saving before dipping into the AMRF.
We are very fortunate to have a large cash balance in savings built up, but this is effectively loosing ground rather than generating income. Neither my spouse nor I come from a wealthy background, so the thought of not having sufficient income coming in does not sit comfortably with either of us. My strong preference is to stop contracting completely as soon as finically feasible (this is something I really want to do), and am happy to continue actively managing the few rental properties we already own, or to add another one.
Our estimated monthly expense is €6,500, approx. €80K per year.
Prefer to leave the AMRF grow for the next 6+ years and not touch it.
I would be grateful for your opinions on what is a realistic investment to divert some of the cash savings balance so that it is income producing, or as a safety position.
Thank you
Age: 54
Spouse Age: 51
Children: 1, Age 17 with 2 years remaining in secondary school and hopefully college after that for 4 or 5 years.
I cut back from a demanding and stressful job about a year ago paying €150K per year due to long hours. I now work 2 days a week on a contract basis which pays €600 per day. This contract role now grosses about €60k per year based on a two day week. The company I contract with has indicated that they wish to continue rolling over my contract on an annual basis.
My spouse is a full time mother and does not currently work outside the home.
The following is our financial status:
Own Home Value €800,000, no mortgage.
Buy to Let Investments :
Property 1:
Value €300,000
Mortgage €43,000 remaining over 5 years. Monthly Repayment €850 (including insurance)
Monthly Rent: €1,300
Property 2:
Value €230,000
Mortgage €0
Monthly Rent:€1,900 net of management fees
Property 3:
Value €250,000
Mortgage €0
Monthly Rent: €1,800 net of management fees
Total unearned income from invetsment property, after tax would be approximately €3,000 per month.
The above valuations are very conservative, may be worth an additional +10% in the current strong market.
All properties have been recently refurbished and no known repair jobs due, they are located in areas of strong rental demand with a good spread between private sector and public sector (near hospital, university and large established industrial estate).
AMRF (Pension Value): €700,000
49% Equities
42% Fixed Interest
5% Cash
4% Property
Additional Cash (savings) In Bank €530,000... earning nothing, concerned about puting a large deposit amount into a non-bricks and mortar / digital bank.
2 x Cars with combined value of about €70,000, neither of which need to be updated for the next 3 or 4 years hopefully. Expect to retain just 1 car after next 3 or 4 years. No loans or outstanding finance.
Apart from €43K owing on 1 investment property, no other loans or finance.
Credit Cards are normally paid off each month.
My concern is that with almost 50% of my AMRF in equities, and with 3 x rental properties, I am already quite exposed to both equities and property despite most of the property producing income. As, my current contract role does not allow me to actively trade stocks and shares, while I understand P/E ratios, I don't actively follow the markets so consider myself as having negligable knowledge of this domain. My comfort zone is to go and purchase another rental property (with all the risks that exposes us to…. have been dealing with tenant and PRTB issues for more than 10 years so am well versed in the risks before anyone responds in all caps).
I am focused on quitting contract work next year (simply fed up paying such high rates of tax on hard earned income). Have plenty of non work related hobbies, interests and friends. However, I need a level of replacement income from other sources rather than just depleting cash saving before dipping into the AMRF.
We are very fortunate to have a large cash balance in savings built up, but this is effectively loosing ground rather than generating income. Neither my spouse nor I come from a wealthy background, so the thought of not having sufficient income coming in does not sit comfortably with either of us. My strong preference is to stop contracting completely as soon as finically feasible (this is something I really want to do), and am happy to continue actively managing the few rental properties we already own, or to add another one.
Our estimated monthly expense is €6,500, approx. €80K per year.
Prefer to leave the AMRF grow for the next 6+ years and not touch it.
I would be grateful for your opinions on what is a realistic investment to divert some of the cash savings balance so that it is income producing, or as a safety position.
Thank you
