LeinsterNordie
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That's fair, once my partner is back from maternity leave pension max out is next on the list. The mortgage is fixed for a little more than 6 more years so won't be able to overpay by much. I think pension max out will cost me ~500 net per month. Any ideas on best plan for the remaining money.Before sorting the kids out take care of yourself. Max out pension contributions and over pay the mortgage as much as possible.
Why can't you overpay? There would be no break fee in your case with current interest rates.The mortgage is fixed for a little more than 6 more years so won't be able to overpay by much.
I have this set up for my own kids. A simple trust document with a life company. Money goes out by direct debit, and everything is taken care of. The downsides I see are that the money is legally theirs immediately, and can't be touched until they're 18. Similarly to a pension, you're locking away money that you can't get if something unexpected happens. Other than that you just need to plan for them potentially having access to a very large sum of money at 18.I like the idea of taking advantage of the 3k/year gift exemption to put savings together for the kids if they needed it in their 20's for a house etc. Does this make sense or is there a major drawback to putting this in trust?
You should strongly consider marriage as you have so much home equity.once my partner is back from maternity leave
Working on that, will be done shortly (costs already accounted for/paid separately to what's listed above)You should strongly consider marriage as you have so much home equity.
At the moment you are both facing a big CAT bill if the other passes away.
I just meant that the overpayment is limited to 10% at the moment which would be only 160/monthWhy can't you overpay? There would be no break fee in your case with current interest rates.
What life company/funds did you select? Would you recommend them? My (possibly naive) solution to dealing with them having access to the cash at 18 is simply don't tell them it exists?I have this set up for my own kids. A simple trust document with a life company. Money goes out by direct debit, and everything is taken care of. The downsides I see are that the money is legally theirs immediately, and can't be touched until they're 18. Similarly to a pension, you're locking away money that you can't get if something unexpected happens. Other than that you just need to plan for them potentially having access to a very large sum of money at 18
your overpayment isnt limited, there is nothing to stop you making any size of overpayment you want (as a partial redemption) there may (or more likely may not) be a small fee for doing this. You can check that with the bank.Working on that, will be done shortly (costs already accounted for/paid separately to what's listed above)
I just meant that the overpayment is limited to 10% at the moment which would be only 160/month
What life company/funds did you select? Would you recommend them? My (possibly naive) solution to dealing with them having access to the cash at 18 is simply don't tell them it exists?
Check this. The penalties (if any) may be lower than you think.The mortgage is fixed for a little more than 6 more years so won't be able to overpay by much.
There is no limit. 10% is just the amount BoI will allow before seeing if a break fee is due.I just meant that the overpayment is limited to 10% at the moment which would be only 160/month
Mine is New Ireland. I know Standard Life also have a standard bare trust offering. There are fees with these, but I reduced the fees by putting in a lump sum to start.What life company/funds did you select? Would you recommend them? My (possibly naive) solution to dealing with them having access to the cash at 18 is simply don't tell them it exists?
your overpayment isnt limited, there is nothing to stop you making any size of overpayment you want (as a partial redemption) there may (or more likely may not) be a small fee for doing this. You can check that with the bank.
Check this. The penalties (if any) may be lower than you think.
This is a new one on me, I knew you would have minimal fees to break the contract at this stage but I assumed I'd have to clear the mortgage or go on whatever rates are available at the time of the break. So I could clear a chunk off the mortgage and keep the rest of the terms unchanged?There is no limit. 10% is just the amount BoI will allow before seeing if a break fee is due.
There will be no break fee for you at the moment.
Yes. Your right to repay early is covered by legislation, as well as your mortgage terms and conditions.So I could clear a chunk off the mortgage and keep the rest of the terms unchanged?
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