Age: 44
Spouse’s/Partner's age: 44
Annual gross income from employment: E 100K
Annual gross income spouse: E 6K (part time)
Rental income: E 20K
Type of employment: Private sector (me)
Expenditure pattern: More savers than spenders.
Rough estimate of value of home: E 450K
Mortgage on home: E 3K
Mortgage provider: AIB Tracker (ECB + 0.6%)
Other borrowings – car loans, etc None
Do you pay off your full credit card balance each month? Yes
Savings and investments:
E 30K cash (in best available 30 day deposit account)
E 450K in DC pension fund (Current fund value - mostly equities. Spread across 2 schemes - former & current employer)
Do you have a pension scheme?
Me: yes, employer contribution (9%) + my contribution (5%).
Spouse: will qualify for state pension. (Investment property bought as pension for spouse)
Do you own any investment or other property? Yes
Rough estimate of value of property: E 230,000
Mortgage on property: E 110,000
(Rate approx 5%, with approx 20 years to go. Currently fixed, will revert to variable in the coming months. Will be cleared around retirement)
Ages of children: 13 & 10
Life insurance:
1. Joint mortgage protection policy (reducing balance on PPR mortgage - policy will be finished next year).
2. Me: Death in service benefit - 4 times salary (approx).
3. Spouse: none, apart from joint mortgage policy.
What's good:
- Very low tracker rate on mortgage, and mortgage will be cleared in the next few months, both in mid 40's.
- Pension is reasonably well funded - funds currently valued at 450K with 20 years to retirement, plus another 20 years of contributions to come.
What's bad:
- Savings are not massive - 30K liquid assets.
- No specific savings fund (e.g. education), but can increase savings in the coming months when mortgage is cleared
- Currently not maximising tax relief by making AVCs (although 14% of salary is going into pension, between mine & employer's contribution. I made AVCs in the past - early/mid 30's)
Questions:
- Do we have enough life assurance cover?
- Mortgage will be cleared in a few months - currently paying E 650 per month. What's the best use of this amount when mortgage is cleared?
* Divert current mortgage payment to savings account and increase cash savings (but returns on deposits close to 0%)
* Divert current mortgage payment to investment fund (e.g. 5 year term and access funds when kids starting college)
* Make AVCs getting instant tax relief (but money is tied up for next 20 years). Could increase AVCs now and decrease in 5 years when kids starting college
* Overpay investment mortgage (but mortgage interest relief is going to 100% from 2019, so may be best to leave investment mortgage as is to maximise tax relief on interest)
* Save for deposit on another investment property
* Other?
- Any other comments / suggestions?
Spouse’s/Partner's age: 44
Annual gross income from employment: E 100K
Annual gross income spouse: E 6K (part time)
Rental income: E 20K
Type of employment: Private sector (me)
Expenditure pattern: More savers than spenders.
Rough estimate of value of home: E 450K
Mortgage on home: E 3K
Mortgage provider: AIB Tracker (ECB + 0.6%)
Other borrowings – car loans, etc None
Do you pay off your full credit card balance each month? Yes
Savings and investments:
E 30K cash (in best available 30 day deposit account)
E 450K in DC pension fund (Current fund value - mostly equities. Spread across 2 schemes - former & current employer)
Do you have a pension scheme?
Me: yes, employer contribution (9%) + my contribution (5%).
Spouse: will qualify for state pension. (Investment property bought as pension for spouse)
Do you own any investment or other property? Yes
Rough estimate of value of property: E 230,000
Mortgage on property: E 110,000
(Rate approx 5%, with approx 20 years to go. Currently fixed, will revert to variable in the coming months. Will be cleared around retirement)
Ages of children: 13 & 10
Life insurance:
1. Joint mortgage protection policy (reducing balance on PPR mortgage - policy will be finished next year).
2. Me: Death in service benefit - 4 times salary (approx).
3. Spouse: none, apart from joint mortgage policy.
What's good:
- Very low tracker rate on mortgage, and mortgage will be cleared in the next few months, both in mid 40's.
- Pension is reasonably well funded - funds currently valued at 450K with 20 years to retirement, plus another 20 years of contributions to come.
What's bad:
- Savings are not massive - 30K liquid assets.
- No specific savings fund (e.g. education), but can increase savings in the coming months when mortgage is cleared
- Currently not maximising tax relief by making AVCs (although 14% of salary is going into pension, between mine & employer's contribution. I made AVCs in the past - early/mid 30's)
Questions:
- Do we have enough life assurance cover?
- Mortgage will be cleared in a few months - currently paying E 650 per month. What's the best use of this amount when mortgage is cleared?
* Divert current mortgage payment to savings account and increase cash savings (but returns on deposits close to 0%)
* Divert current mortgage payment to investment fund (e.g. 5 year term and access funds when kids starting college)
* Make AVCs getting instant tax relief (but money is tied up for next 20 years). Could increase AVCs now and decrease in 5 years when kids starting college
* Overpay investment mortgage (but mortgage interest relief is going to 100% from 2019, so may be best to leave investment mortgage as is to maximise tax relief on interest)
* Save for deposit on another investment property
* Other?
- Any other comments / suggestions?