The taxation on investments is something I wish I had researched more before moving back to Ireland. It was definitely much more beneficial in the US/UK but it is what it is and now I can just look how to best take advantage of it. The below is the current strategy I am considering.
Goals
1. Trade up to house in Dublin area in 3-5 years - Need to save Cash for deposit + use equity built up in current property
2. Long Term will likely be in Ireland when retiring but strong possibility of another few years working abroad.
My goals are a mix of wanting to maximize retirement whilst also building a pool of liquid assets for the short to medium term financial needs. My strategy is as follows based on having 2k per month to save, this is net of living costs and other costs such as holidays but at times the cash would be dipped into.
Goals
1. Trade up to house in Dublin area in 3-5 years - Need to save Cash for deposit + use equity built up in current property
2. Long Term will likely be in Ireland when retiring but strong possibility of another few years working abroad.
My goals are a mix of wanting to maximize retirement whilst also building a pool of liquid assets for the short to medium term financial needs. My strategy is as follows based on having 2k per month to save, this is net of living costs and other costs such as holidays but at times the cash would be dipped into.
- Non Liquid Investments
- Overpay Mortgage - 500, after 3 years would equate to ~22% (~100k) in Equity assuming no change in house value or 15% with a 10% decrease in stock price.
- Pension AVC - 500 ( including employer contributions, I would be at ~75% of max contributions before losing tax benefit)
- Liquid Investments
- Cash - 500
- ETFs - 250 - Plan to sell on or prior to the 8 Yr point but in the interim benefit (or lose) from market volatility
- Prize Bonds - 250