2blacklines
Registered User
- Messages
- 21
Hi folks,
First post here but I've been a lurker for many years. I've started to think about planning for my pension, and ideally want to have something that I can pass on to my children in the future. I'm 33 and only started my pension 18 months ago @ €550/month, paid solely by my employer - I am making no contributions. I currently have no debt, and own a property outright with my wife worth approximately €350k. We will be selling our house shortly to buy our "house for life" and will need a mortgage of approximately €100k to top up our current savings. Previously, neither of us contributed to our pensions as we agreed that all of our money should go towards paying down our debt, a view not shared by any of my peers but I feel it has worked well. As I'm about to take on a new mortgage, I am considering my options now:
1. Keep €60k of our savings for a deposit on an investment property with an 8% return. Not looking to get any distributions from the property over the 20 year life, just that it washes it's own face on an 11/12 month occupancy rate over the life of the debt. Assuming rents don't drop significantly or interest rates soar, this appears feasible from my calculations. At worst, if I had to make contributions towards the capital element of the debt, that would be acceptable.
2. Keep the mortgage to minimum amount, pay down in 2-3 years and then consider saving for investment property in the future.
I'm still to work out my total pension strategy but ultimately I want to have a reasonably mix between voluntary pension contributions, long term shareholdings and a couple of low maintenance investment properties. We both currently pay tax at top bracket but my wife may consider leaving work in the near future so there may be some benefits to having the property income.
Appreciate any help/guidance from people who have been in a similar situations!
First post here but I've been a lurker for many years. I've started to think about planning for my pension, and ideally want to have something that I can pass on to my children in the future. I'm 33 and only started my pension 18 months ago @ €550/month, paid solely by my employer - I am making no contributions. I currently have no debt, and own a property outright with my wife worth approximately €350k. We will be selling our house shortly to buy our "house for life" and will need a mortgage of approximately €100k to top up our current savings. Previously, neither of us contributed to our pensions as we agreed that all of our money should go towards paying down our debt, a view not shared by any of my peers but I feel it has worked well. As I'm about to take on a new mortgage, I am considering my options now:
1. Keep €60k of our savings for a deposit on an investment property with an 8% return. Not looking to get any distributions from the property over the 20 year life, just that it washes it's own face on an 11/12 month occupancy rate over the life of the debt. Assuming rents don't drop significantly or interest rates soar, this appears feasible from my calculations. At worst, if I had to make contributions towards the capital element of the debt, that would be acceptable.
2. Keep the mortgage to minimum amount, pay down in 2-3 years and then consider saving for investment property in the future.
I'm still to work out my total pension strategy but ultimately I want to have a reasonably mix between voluntary pension contributions, long term shareholdings and a couple of low maintenance investment properties. We both currently pay tax at top bracket but my wife may consider leaving work in the near future so there may be some benefits to having the property income.
Appreciate any help/guidance from people who have been in a similar situations!