Afternoon guys,
Apologies have not replied in a few days, the children have been ill and coupled with very little sleep , so much on at work its been a little difficult to get the time to reply until now. Thanks for bearing with me.
Bronte, I have copied and pasted your original layout and will if I may, correct figures that need alteration. In my initital post I unfortunatly did not use the case study format and I apologise for any misleading and confusing figures that resulted.It was not my intention to make the figures confusing
Income
Wife 1112 X 26 / 12 = 2492 -
Correct
Husband 940 X 26 / 12 =2036 -
Correct ( This figure is my husbands basic salary- without overtime. Earning overtime he currently earns 1,450.00 net per fortnight.)
Child allowance =
428 per month
Total Income: 4956 monthly
Outgoings
Mortgage 890
Top Up 273
Insurances 262
Child minder - E880.00 per month, re negotiated last week.
Health Insurance 144
CU 380
Groceries 500
Gas 200
Phone 80
Broadband 30
Sky 70
Spoke to Sky and will be cancelling this .
Diesel 400
Car Insurance 1 -
E 575.00 per annum ( E47.91 per month)
Car Insurance 2 -
E 532.00 per annum ( E 44.33 per month)
Car Tax 1 -
E478.00 per annum / E39.83 Per month.
Car Tax 2 -
E 478.00 per annum/ E 39.83 per month.
Clothing
- E 80.00. Try not to ever buy anything full price,always wait till sales to stock up, and kids have worn each others clothes, Next well worth investing in, lasts an eternity in children years !!
Total :-
Purposely have not added up to let Bronte know what changes were made.
Home
Mortgage balance 245K
Top Up 79K
Value 290K
Negative Equity 34K
Investment A
Value 90K
Mortgage balance 248 K
Negative Equity 158K
Term remaining 30 years
Interest rate 4.6% variable
Mortgage 1266
H Insurance :
Encompassed in management fees.
L Insurance 104 X 12 = 1248 (
Covers the full amount borrowed in the event of one of our deaths, not manditory, but we felt essential)
Management 1400
NPPR 200
P Tax 100
Tax :
To be confirmed
Rent 970
Investment B
Value
90 K
Mortgage balance 252K
Negative Equity
162 K
Term remaining 30 years
Interest rate 4.6% variable
Mortgage 913 changing to 1266 next February,
Interest only at the moment, capital and interest repayments due next Feb- 1266 per month.
H Insurance-
encompassed in the Management fees block policy.
L Insurance 104
Management 1400
NPPR 200
P Tax 100
Tax
Rent 800
Bronte, you have asked 12 questions whilch I will also go through point by point to clarify, hope this makes for easier reading and easier interpretation....
1) Insurances :
We pay E262.00 for life cover, serious illness cover (SIC) and home insurance. If I am allowed to mention company names, I'm not sure, already named the bank, but IL the main insrance company in Irelans, insuring us has put a 75% loading onto my husbands policys due to the fact he is a smoker.
I have to get the policy document back from the Financial Advisor to check re the mortgage protection...I honestly thought we were paying that, but hand on heart I cant swear to that just now.
The 104.00 is for the RIPs, life cover to ensure full mortgage clearance on the event of either death, God forbid.
2) Changes made highlighted for Bronte,xx.
3) Re child allowance, there was indeed a quarterly payment given to each child, this payment was abolished over 2 and half years ago. The child benefit we recieve each month is E 428.00.
4) The investments are covered by a block policy for structural damage/repair etc . We dont have contents insurance.
5) Clarified costs of car insurance and tax. We pay these on a yearly basis usually. My husband has traded 'down' from a 08 to a 06 , to get a smaller car for commuting that was a diesel. We sold a lovely mondeo to do this, but we did what made most sense and use my car for the family and any long distance journies to be made. My car also Diesel, 04 model.
6) Completed an SFM both for EBS and the advisor. I think it was my initial layout that was the confusing part Bronte, It looked like we were paying over a thousand per month on insurances, when in actual fact that figure reflected both the mortgage and the insurances combined , my fault , apologies. I am not in the financial field, obviously, and it shows, I should just have kept to the facts and not explain figures !!
7) I have approached an accountant earlier this month to ask him about doing all the accounts/ backdating to early 2006. Know its going to cost us a fortune....my husband is actually not talking to me for the last few days because I approached the accountant to do this for us. He feels that we have thrown good money after bad to the investements, and he doesnt want to spend any more than he has to on them. I will also have to backdate registration with the PRTB...something I actually feel quiet ill about...I honestly thought if we never made a profit on them then how could they tax them, we have always been supplementing them, even the first year we bought. If we ever had made a profit, there would be absolutly no issue,would gladly pay tax on them, but seems your hammered either way.
So thats another thing keeping me up at night, the worry of what thats going to cost also. I'll just have to go softly softly with my husband and get him to buy into the idea that this will have to be done. I'm in the middle of sorting out two folders, onr for each RIP, for the accountant so its as seemless as possible to do up the accounts. Luckily I have kept most receipts and all documentation filled away, just a matter now of sifting through everything and getting it right for the accountant.
If I can ever convince my husband that we need to do this.......
8) I do two large shops per month, one a fortnight, circa 180/200 per fortnight,. I put 20.00 in a jar per fortnight, for weekly top ups of milk or bread only, usually does us the fortnight.I also go to a butcher every friday, (fiver friday !) get fresh meat and veg/ eggs there, and freeze deals so we cook from scratch as much as we can and never eat out or get take out. All work lunches made at home, bought flask and bring coffee to work etc....We bake also, scones brown bread etc !! Cook everything we can from scratch...never eat out or get take away....
I was on a course few weeks ago, 150 attendances, I was the only one who brought my lunch every day, may seem cheap , but it saves the cents .....
9) I need to check the policy document on that one Bronte, cant swear hand on heart that it is mortgage protection.We both have our salaries protected,as in have income protection.
10) The top up was taken out to facilitate purcuase of the RIPs. All taken out same time. We had finance for solicitors fees etc, but had no real deposit for the RIPs. This really unsettled us and we should have listened to our gut and just walked away, but broker advised us that this was the normal way to do things, it was for our children......think of their future.......
11) Unfortunatly necessary for the two cars, both commute to work, need cars for meetings outside work organisations also. We drive 04 and 06 cars, both diesel, we changed a lovely ford mondeo 08 for the 06 car as it made more sense for my husband to drive smaller car, diesel, and we'd use my car as a family car.
12 ) The financial advisor actually send back the cheque we sent him. He didnt quote us a fee, but he said we did so much prep work, legwork, groundwork, we secured the dame outcome he did, in securing interest only for a further year, he felt he couldnt engage meaningfully with the EBS. So he didnt charge us.
He also agreed with the IO, we were just kicking the can down the road and not securing a more tangible solution.
PS- no au pair yet !! We do have a spare double room, but with another lil person due next year, best keep options of bedrooms and existing sharing arrangements open at the minute , xxxxx
Thanks again to each and every one of you who read, posted, offered their support, crunched the numbers, and generally guided us in our way, particularly to Bronte, who seems to have taken us under her wing for a bit, thank you for your advice , help and support.
I would love to be able to do something nice for you too, for helping out so mcuh over the last few days.
Would be smashing to have a cuppa with the folks who have helped out , be able to look them in the eye, and genuinely say thank you to each and every one of you for taking the time, effort and skill to be able to seperate and tease out details that we dont see anymore.
Hopefully this reads easier and more logical.
Till next time,
Take care ,
Serren. xxxxxxxx