He would have to pay taxes on the 33K once the interest and costs are deducted.The rental income seems to be covering the rental mortgage so that doesn't appear to be an issue (other than the fact it possibly isn't worth the hassle).
Sure if that happens they could always give some of the inheritance money to their kids, I'm sure they would happily forget about the perceived lack of attention in that casehave seen many cases of people really cutting back and overpaying their mortgage and not fully enjoying life with their kids when they should have been.
Only to find that they get a big inheritance in their 50s or 60s and have far more money than they need.
might have been said tongue in cheek but in all seriousness time spent with your kids will mean a lot more to them than money when they are middle aged.Sure if that happens they could always give some of the inheritance money to their kids, I'm sure they would happily forget about the perceived lack of attention in that case
I don’t think it’s sensible to factor inheritance into one’s finances. The parents could spend it all. Or they too could put it all into EV stocks. Or their medical or nursing home care could devour it. Or they could change their Will.With respect, I think that certain assumptions must be made about the future.
Those assumptions may turn out to be wrong and then the plans may change.
But it seems much better to hold onto the pension fund and expect to clear the mortgage from the inheritance.
And if it turns out that no inheritance is received, then the pension fund can be cashed at that stage.
Brendan
It could be that cutting back on spending gives more time with the kids.might have been said tongue in cheek but in all seriousness time spent with your kids will mean a lot more to them than money when they are middle aged.
The fact that the OP is on an interest only mortgage of this size with rental properties is unusual.
Hi Brendan,Let's assume in the current situation that there is no €400k inheritance on the horizon. It's not clear to me that they should access their tax-free lump sum or sell their house now. They can always do that later.
So with the expectation of an inheritance, they definitely should not trade down or take their tax-free lump sum now.
Brendan
There’s a guaranteed 5% saving available
Living way beyond their means. This has to be addressed.
You should review your expenditure now and you will probably find that you can cut it back considerably.
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?