Near-Term Goals. Am I approaching it right?

[alexandra123]

salary 95k
finishing college 2025 with hopefully a PhD in maths
mortgage cleared dec 2025
pension pot 125k , putting in 5% my contribution and 6% employer contribution
savings : 0
children : none
age:51
married: engaged



outgoings monthly from 2026 onwards:
save : 3200
myself :1100
Tv licence :13
house insu :20
mgmt company :50
garden loan :410 finish july 2026
parents life policy :210
openai chat :23




I have been working hard to clear the mortgage over the last 5 years. Mortgage is being cleared 10 years early.
I want to buy in Gran Canaria Mogan within the next 4 years and after that I want to start working on the pension pot. I would like a small mortgage of around 50k or thereabouts to get me a <=250k holiday home.

goals:
year 1 save = @3200*12=38,400
year 2-4 save = @45000*3= 135,00
total 173,400


I would like my savings to start working for me. I was thinking of investing my monthly savings and hoping for >=10% return on 3-5 year investment. I was looking to start in the stock market - all very new to me, but I was thinking of splitting the money between
MSCI World ETF (EUNL)
iShares EXH1 (Defense)
Rheinmetall AG
VanEck DFNS (Global Defense)


Basically, I am looking for some advice on how best to achieve my goals of buying a retirement home and getting their quicker by using the stock market and then working on the pension pot.

I dont drink that much, I hardly go out and that is due to parent caring responsibilities, college and a full time job. So I really want to start unwinding and enjoying my life when college is over and when family responsibilities come to an end as I am going through this the last 20 years now. I would also like to retire early but I dont have a year in mind and my current pension pot, says that I will get back 800 a month when i retire.

 

[Persia]

I wouldn't buy a holiday home in Spain, rent instead. You're tying money up in a largely unproductive asset.
There are a lot of threads advising same on this site.

 

[Fibbernacci]

You're heavily weighting to defense. For the Mogan idea I'd be thinking of leaving the cash invested in blue chip stocks a d renting off the dividends. A place in Mogan could be some 300-400k and possibly not a good idea unless you were going to be there for a lot of the year

 

[ClubMan]

children : none
age:51
married: engaged

Are you likely to have children, adopt, or become a step parent etc.? If so then that may have a big influence on any financial plans.

pension pot 125k , putting in 5% my contribution and 6% employer

It might be an idea to put more into your pension. And to check that it's invested appropriately (most likely a high/all equity fund/index tracker) and the charges are competitive.

 

[conor_mc]

I was thinking of investing my monthly savings and hoping for >=10% return on 3-5 year investment.

Even 12-18 months ago with stock markets growing in the 20%pa range, I'd have said this was an unrealistic expectation.

Today, even more so. Your timescale of 3-5 years is too short to get an average return of 10% - you could just as easily be hit with 3x minus-10's as 3x plus-10's over the next 3 years.

Well done on clearing your mortgage btw. Your next best step to financial success is to forget about purchasing a holiday home (rent if desired, as advised by others above) and max out your pension contributions. Is your 125k pension pot with your current employer or a previous one?

 

[Brendan Burgess]

pension pot 125k

age:51

how best to achieve my goals of buying a retirement home

Your pension pot is way too light for your age.
Sell your home and buy a retirement home when you retire.

As of now, you cannot afford to buy a retirement home in advance.

married: engaged

You will need to plan your finances with your spouse. Your circumstances might well change after you marry. Another reason for not buying a holiday home. Does your spouse own their own home?

 

[messyleo]

After finishing the phd is there any prospect of a new career direction/salary? If so maybe factor this in financially.

 

[moneymakeover]

You're pushing the limit trying to contribute to your pension and at the same time save 173k

I guess you hope to get a promotion with your maths qualifications?
I fully support your goal to buy an apartment in the Canaries if that's what you want but I think the pension contribution would have to suffer.

If you continue to put just 5% into the pension you might save 173k

How about if when you stay in your holiday apartment you rent out your Irish property? Maybe for 6 months per year for a few years. That would be a nice dig out.

 

[Persia]

How about if when you stay in your holiday apartment you rent out your Irish property? Maybe for 6 months per year for a few years.

That could go badly wrong if tenant refuses to leave after the six months, then you're down the rtb rabbit hole for a few years....but where do you live in the interim and what will the property condition be like when they leave?

 

[moneymakeover]

Fair point @Persia
Another option would be to get a lodger, keep own room
Then they have their room
And she has her room to return to whenever.

Just thinking of options to make things work financially

 

[CharlieMac]

I worked with a person who bought a place in the Canary Islands to holiday in. At first she loved it then got tired of justifying the purchase by going to the same place over and over. These days non residents buying up holiday homes in Spain, Greece has become very unpopular with the locals I noticed.

 

[alexandra123]

Just some further updates.
I am hoping to get to the 120k salary range within the next 2 years and change my role.

There will be no kids in our lives.
My partner has no assets and is not eager to contribute to buying a home abroad. He lost his house and overseas holiday home during his last divorce and does not want to bear the burden again. He has no pension and will not start one.

I know my pension is light. I was never brought up to think of a pension, let alone go to college.

If I do move abroad, I hope to let out one room in my own home, just to keep money coming in and to keep the place in use and not vacant. I dont plan on renting the whole home out as I am afraid people wont leave.

 

[Ruffian]

He's not Tom Ripley by any chance?

 

[ClubMan]

I know my pension is light. I was never brought up to think of a pension, let alone go to college

Be that as it may, as suggested by several posters earlier, you should probably prioritise boosting your pension now by contributing up to your age related tax relief limit - 30% of gross at your age. You should also check that the asset allocation is appropriate (high/all equity content in my opinion) and the charges are competitive.

 

[Premos]

If you get married, what are the financial plans? If he has no house, will he live with you, will he go abroad with you? When he retires, will he be able to survive on the state pension? Will that affect your ability to do what you want to do and your finances?
I think your plan is unrealistic. You have very little savings after working for probably 25 to 30 despite a very healthy wage. (Even if I do understand that you have paid your mortgage early). How do you plan to live on 1k plus some detailed expenses? How have you come to that figure? Why some limited expenses are added?
As mentioned before, your pension is light. At your age you could contribute 30 per cent of your wage. This would be the most effective saving particularly as you mentioned retiring early. Your current pot would give you about €400. The €800 is probably if you continue your contributions until 66, taking into account the find performance.
Any reason you chose the Canary islands? Have you lived there previously? Have you a connection with the place? Living abroad and going on holidays is different. I do visit the idea of buying abroad regularly as I have close connection with another European country. Despite the fact that I can speak the language, that the area I visit is attractive, that we have family connection there and could buy a property at a reduced price without finance, it still doesn't make sense to me financially and renting is still my preferred option because it's the cheapest and the most flexible option.

 

[Persia]

My partner has no assets and is not eager to contribute to buying a home abroad. He lost his house and overseas holiday home during his last divorce and does not want to bear the burden again. He has no pension and will not start one.

Had to read this twice. So essentially your life partner intends to live with you rent free in both proposed properties and live off your pension when he retires?

I would respectfully suggest it's not a money makeover you need but a partner makeover.

 

[conor_mc]

I think you need to forget about buying a holiday home. As things stand in your relationship, your already light pension pot is likely going to have to support both you and your intended, when it is already falling short of your own individual needs.

Max out your AVC's, rent a holiday home in due course if you must, share your home with your partner... but I do think you should be insisting that they at least start making some of their own provisions for their own retirement rather than rely on your funds to carry them. Whatever about maybe not having the means to do so, but to outright refuse just because...... well that's just not fair on you.