Faointeach
Registered User
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3)Pie in the sky stuff possibly, but was wondering should we aim to pay off mortgage ( that would serve as spouse’s pension in the future (college area/near centre so think will always be able to rent out) and save up over next 5 - 10 years for new house....
4) think as I write this, obvious that I need to sort out life insurance for spouse for mortgage.
Yet they have 110k savings and positive equity to tune of 330k in property, gold plated and very valuable PS pension... I think a lot of people would accept that level of lackadaisical. They're in their early forties with young kids and yes on decent salaries, but not a mind blowing combined salary...OP needs to be strict on savings, I suspect that comment means lackadaisical overall financially. Savings should go out directly the salary comes in.
I think a lot of people would accept that level of lackadaisical.
Why do you need income protection if you are a civil servant..
That’s right, means could get 75% of income if become sick. it’s not costing much more than a coffee a week so seemed to make sense.Income protection provides a proportion of your income should you become incapacitated and be unable to work. I wouldn't think civil servants are immune from career ending illness!
Thank you Brendan that’s really helpfulIf you die, the mortgage will be paid off because you have mortgage protection in place.
If your spouse dies, you will lose an income of €2,500 a month. If you want to take out life insurance for this fine. But it's not directly related to the mortgage and should not be. It should be cheap enough, but if your spouse is in good health, then maybe you don't need to insure their life.
Use the premium to pay down the mortgage or to max out the tax-efficient pension contributions.
Brendan
Age: 41
Spouse’s/Partner's age: 40
Annual gross income from employment or profession: 110,000
Annual gross income of spouse, varies, affected by covid so conservatively saying: 40,000
Monthly take-home pay 5300 (me) 2,500 (partner)
Type of employment:
Me, Public sector , spouse self employed
In general are you, (a) spending more than you earn, or (b) saving?
Saving but without a focus and not particularly strict, just living a quiet life!
Rough estimate of value of home 500,000
Amount outstanding on your mortgage: 168,000
What interest rate are you paying? 2.75
Other borrowings – car loans/personal loans etc none
Do you pay off your full credit card balance each month? Yes
If not, what is the balance on your credit card
Savings and investments:
90,000 cash savings
20,000 in kids names saved from child benefit and gifts they have received from grandparents.
Do you have a pension scheme? Yes, defined benefit with death in service benefit for husband. partner no
Do you own any investment or other property? No
Ages of children: 6 and 3
Life insurance: yes for mortgage value and income protection, partner none and not on mortgage
What specific question do you have or what issues are of concern to you?
1)Children’s savings are in an post state savings, should I move this lump sum somewhere?
2)We either need to extend house or buy a bigger one. To do extension would be about 150,00 and to move would need to buy a house with about a 750,000 value. Any advice on how to bridge gap of current savings and money needed for either of these options?
3)Pie in the sky stuff possibly, but was wondering should we aim to pay off mortgage ( that would serve as spouse’s pension in the future (college area/near centre so think will always be able to rent out) and save up over next 5 - 10 years for new house....
4) think as I write this, obvious that I need to sort out life insurance for spouse for mortgage.
thank you , yes can see that is confusing! I think you have crystallised the issues for me, need to decide if extending or buying. Apart from these two options, I was trying in question 3) to see if we could pay off mortgage, save up again and get a mortgage for a new place and use rental income from the old house instead of pension for husband who is self employed.No idea what you are asking here. Are you saying that the house your spouse had before you got married is now rented? Or is the fact that would not have a mortgage equivalent to your spouse having a pension?
Maybe edit the post to clarify what you mean. The brackets are confusing.
That’s right, means could get 75% of income if become sick. it’s not costing much more than a coffee a week so seemed to make sense.
I suggest that if you are moving into a new house, have your previous house/new house rented so any mortgage you'll have to pay will be paid by your tenants. Since your interest rate is quite low at 2.75%, it's ok not to pay off your mortgage right away and instead invest in on a fund higher than the interest rate of your mortgage. If you are interested on being financially free, watch this video also, tips from the best, it's not too late my friend.Age: 41
Spouse’s/Partner's age: 40
Annual gross income from employment or profession: 110,000
Annual gross income of spouse, varies, affected by covid so conservatively saying: 40,000
Monthly take-home pay 5300 (me) 2,500 (partner)
Type of employment:
Me, Public sector , spouse self employed
In general are you, (a) spending more than you earn, or (b) saving?
Saving but without a focus and not particularly strict, just living a quiet life!
Rough estimate of value of home 500,000
Amount outstanding on your mortgage: 168,000
What interest rate are you paying? 2.75
Other borrowings – car loans/personal loans etc none
Do you pay off your full credit card balance each month? Yes
If not, what is the balance on your credit card
Savings and investments:
90,000 cash savings
20,000 in kids names saved from child benefit and gifts they have received from grandparents.
Do you have a pension scheme? Yes, defined benefit with death in service benefit for husband. partner no
Do you own any investment or other property? No
Ages of children: 6 and 3
Life insurance: yes for mortgage value and income protection, partner none and not on mortgage
What specific question do you have or what issues are of concern to you?
1)Children’s savings are in an post state savings, should I move this lump sum somewhere?
2)We either need to extend house or buy a bigger one. To do extension would be about 150,00 and to move would need to buy a house with about a 750,000 value. Any advice on how to bridge gap of current savings and money needed for either of these options?
3)Pie in the sky stuff possibly, but was wondering should we aim to pay off mortgage ( that would serve as spouse’s pension in the future (college area/near centre so think will always be able to rent out) and save up over next 5 - 10 years for new house....
4) think as I write this, obvious that I need to sort out life insurance for spouse for mortgage.
Public sector is significantly cheaper; some unions / staff associations offer very good deals.Really?? I highly doubt you are getting income protection for €75/80k for €3/wk
Yet they have 110k savings and positive equity to tune of 330k in property, gold plated and very valuable PS pension... I think a lot of people would accept that level of lackadaisical. They're in their early forties with young kids and yes on decent salaries, but not a mind blowing combined salary...
I would have to check the Revenue statistics, but 150k for a couple wouldn't put you in the top 1%.Just curious.. what would be considered a mind blowing combined salary?
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