Mortgage or pension investment?

E

eggy20

Registered User
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we have 40 k savings in various deposit accounts and I would like to get some advice on what to do with it.
I hope I have included enough information...

Me: 46
Partner: 44
3 children, 5, 10, 11.

Partner
Secure employment 49000k gross, 36000k net.
15 years of pension, with €40 per month AVC.

Me
Childcare and Part time Contract work in education: €33,000.
No current pension,
Old pension fund: projected fund value at retirement €171,260.
I have a second house which is currently rented, rent covers the mortgage, just about.
Remaining mortgage €85,000 term 15 years, .75% tracker mortgage.

Own home
Remaining mortgage €230,000, 24 years term, .75% tracker mortgage.

Childrens allowance is being saved for college.

We have savings of €40,000 - €50,000.
The question is what should we do with the savings which are just in non-earning bank accounts.
 
Hi, You need to provide some more information such as monthly mortgage payment and current value of property.
A lot of the advice you will receive will depend on knowing this information.

Other than that..
If you have any consumer debt/CC/Loans pay it off.
keep three months worth of expenses (not salary) liquid - It won't make you any money so just consider it as insurance - Emergencies happen and so do Job losses.
If you have a major expense coming up you could set some aside for that.
Increase household pension contributions to approx 15% of income - you will get to that age some day and you won't regret having put away money for it

Main thing is to stay away from consumer debt.
 
Last edited:
eggy20 said:
Childrens allowance is being saved for college.

We have savings of €40,000 - €50,000.
Click to expand...

With cheap tracker mortgages, you should not pay them off.

Your partner should maximise his contributions to his pension fund.

You don't need to worry about an education fund. You will have a property to sell at that stage and can use that to fund the education needs if you can't do it out of your current income.

If you have been together a long time and you have three children together, you really should consider getting married. If anything happens to either of you, the other will inherit their wealth free of any inheritance taxes.

Brendan
 
thanks folks!

We are Married (15 years and counting!)
The mortgages come to:
€526 p/m for the rented property, value approx. €180k ( €85k outstanding)
€970 p/m for our home, value approx. €300,000.,(€230k outstanding) though we are not planning on moving at all.

Yes it probably is a good idea to maximise partners pension funds.

The question is what should we do with the savings which are just in non-earning bank accounts.

Thanks for your help.
 
we are pretty adverse to consumer debt...
I had been thinking of paying off some of the mortgage, and putting some into my own pension... but take the point of the low rate on the mortgage, so any other suggestions are welcome.
 
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