The total cost of car credit is in the range of €3k-8k, depending on the car. I would rather keep the cash lying than pay for the car finance .But having this cash hanging around has a large opportunity cost.
At your income and mortgage level you will get car finance without trouble if you need it.
Penny wise and pound foolish. You'd be losing more than 8k in terms of buying power by keeping the cash lying idle.The total cost of car credit is in the range of €3k-8k, depending on the car. I would rather keep the cash lying than pay for the car finance .
Voluntary PRSI payments may make no sense here as she would have an exemption anyway for the years of being a full time homemaker until child is 12:In your shoes I would have serious illness cover as well. There is a state of the world where you are unable to work and your family's lifestyle would not nearly be as high as it will be in the state of the world where you are able to work.
If they have made 520 PRSI contributions (unlikely at their age but not impossible) then they are eligible to make voluntary PRSI contributions at a rate of 6.6% of final year salary. This might be worth it to build up a state pension contributory entitlement. Long term you will want to think about having some kind of private pension in place for them. If they do return to work (even part time) you should look at maxing pension contributions immediately or if in public service making AVCs.
Inflation does not act in the same way on all assets.Inflation has nothing to do with the risk-free rate of return.
Inflation reduces the real value of all assets. Specifically calling out the impact of inflation on cash is pointless.
Seriously?!The value of real assets, as opposed to financial assets is not affected by inflation.
I'm in a similar position to OP and know very little about pensions. I just have the standard HSE public sector pension. Does it make sense to look at commencing a PRSA then or will the €2m limit come into play there again? Is it best to just contribute to the public pension and no need to look at additional PRSAs or AVCs?Can't say whether you should put money into a pension as we don't know your role in the HSE. If you are a doctor and will become a consultant, your pension is almost certainly going to be over €2m, so AVC's are pointless.
Depends on what you are looking to do. If you intend to become a consultant, the chances are you will be overfunded if you stay to retirement. Calculations have to be run before you make any decision.I'm in a similar position to OP and know very little about pensions. I just have the standard HSE public sector pension. Does it make sense to look at commencing a PRSA then or will the €2m limit come into play there again? Is it best to just contribute to the public pension and no need to look at additional PRSAs or AVCs?
What are you working as?I'm in a similar position to OP and know very little about pensions. I just have the standard HSE public sector pension. Does it make sense to look at commencing a PRSA then or will the €2m limit come into play there again? Is it best to just contribute to the public pension and no need to look at additional PRSAs or AVCs?
My understanding was always:Inflation has nothing to do with the risk-free rate of return.
Inflation reduces the real value of all assets. Specifically calling out the impact of inflation on cash is pointless.
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