L
Liamo28
Guest
Having recently become parents at 31/35 years of age, we are keen to make adequate financial provision in the event of either of our deaths, at least until the surviving spouse reaches retirement age, when the state and occupational pensions would kick in.
We estimate that our rental property, current value €350,000 will not increase in value over and above the rate of inflation over the next 30 years and see this a quasi pension for one of us from 65 onwards. - giving an estimated additonal income of €17,500 pa (current value) - 5% single life.
But we are also keen to allow for adequate provison to enable the surviving spouse to remain at home to care for our son, until his 20th birthday!!.
So we are looking to ascertain how much life assuarance we would need to provide an income of €35,000 pa for those years including a 3% inflator. A relative who works in the financial services business suggested €35,000 x 20 ie €700,000. - as he says that in order to minimise risk insurance companies do not assume that the return on capital will outstrip inflation, hence the simple €35,000 x 20.
Does anyone know any webistes that help work this out, that might incorporate variable such as inflation and estimated return on capital. By year 20 we would have spent the capital as it were, so its not a simple rate of return but more some equation whereby the capital will be slowly eroded - a bit like a mortgage but in reverse, but with the facility to allow for a yearly income that increases by 3% p.a
Any comments greatly appraciated.
Liam
We estimate that our rental property, current value €350,000 will not increase in value over and above the rate of inflation over the next 30 years and see this a quasi pension for one of us from 65 onwards. - giving an estimated additonal income of €17,500 pa (current value) - 5% single life.
But we are also keen to allow for adequate provison to enable the surviving spouse to remain at home to care for our son, until his 20th birthday!!.
So we are looking to ascertain how much life assuarance we would need to provide an income of €35,000 pa for those years including a 3% inflator. A relative who works in the financial services business suggested €35,000 x 20 ie €700,000. - as he says that in order to minimise risk insurance companies do not assume that the return on capital will outstrip inflation, hence the simple €35,000 x 20.
Does anyone know any webistes that help work this out, that might incorporate variable such as inflation and estimated return on capital. By year 20 we would have spent the capital as it were, so its not a simple rate of return but more some equation whereby the capital will be slowly eroded - a bit like a mortgage but in reverse, but with the facility to allow for a yearly income that increases by 3% p.a
Any comments greatly appraciated.
Liam