Age: 55
Spouse’s/Partner's age: 54
Annual gross income from employment or profession: 80,000 private sector
Annual gross income of spouse: 28,000 private sector
Monthly take-home pay : 6000 approx
Type of employment: Both in Private Sector
In general are you:
(a) spending more than you earn, or
(b) saving? Now moving to saving more having had a lot of spending over past 10 years referring house
Rough estimate of value of home: 350,000
Amount outstanding on your mortgage: 58,000
What interest rate are you paying? 2.75% AIB, 1000 per month.
Other borrowings – car loans/personal loans etc: Car 19,000, 2 and a half years remaining, 680 per month, Personal Loan for upgrades at home, 5,500, 2.5 years remaining, 260 per month
Do you pay off your full credit card balance each month? Yes
Savings and investments: 90k in ARF and AMRF from previous employment 10 years ago. Currently starting a new job, so my previous pension scheme holds 110k approx. Not sure if these should be listed under this point, or the next Pension question. No other cash savings, all spare cash went into pension AVCs in general.
Do you have a pension scheme? Just moved employer, this question relates to what to do in this area. Previously had been maxing out AVCs to the 35% level employer/ employee, approx 2,300 per month. Wife contributes 200 per month to a scheme she has through her employer.Wife has about 40k in her PRSA.
Do you own any investment or other property? Yes, site which we will be selling for 55k approx, see further detail below.
Ages of children: None
Life insurance: 150k on wife, none on myself, as I have had a health issue 10 years ago, so insurance is hard to come by at a sensible premium, I had life cover under previous company pension scheme so wasn't an issue.
What specific question do you have or what issues are of concern to you?
Couple of questions I could do with expert input on.
1. I will be receiving a severance package of around 25k from my last employment and I will be selling a piece of property for 55k, so I will have 80k available by the end of the year to invest, or to pay off loans. I had intended to clear off the car loan (4.9%), personal loan (7.9%), and mortgage (2.75%)with this cash and leave us debt free. Is that a sensible approach? I have been reading on here a while, and the general slant seems to be to pay off any higher interest loans? I wonder should I retain the mortgage and just invest the cash, as the interest rate is relatively low, but the appeal of total debt free status is strong.
2. After that, I need to start my pension contributions again. My new employer is in the construction field, and doesn't operate conventional pension schemes, mores the CIF site operative schemes. I would intend to contribute the full 35% allowed myself. I was looking at something like a Standard Zurich PRSA which allows AVCs. Would that be a sensible option? I can't figure out the difference in a PRSA and an AVC PRSA? I presumed both might allow AVCs? Or is it as blindingly obvious that one does and one doesn't? I know which funds I'd like to pick there, I was thinking about a split of the Performance 35% , Balanced 35% , 5*5 Global 15% and International Equities 15%. Are the low cost brokers the sensible route here, or can the normal brokers move and negotiate on fees?
3. I need to do something with the pension scheme monies from my last employer. I was thinking about a Zurich Personal Retirement Bond. I can't seem to find the fee structure and charges on it, am I right in saying there might be a 3% commission and 1% AMC on something like that? I would be thinking about the same fund choices for it as the PRSA. I presume this would then be inaccessible for 5 years. Again, same question on fees - as I know what funds I want to choose, is there a lower cost fee structure available?
Its just my wife and I, we don't have kids, and I was hoping we could from here on have a debt free existence, with a decent monthly amount of 2500 gross going to our pensions, we both will most likely work till 65, and we would then still have a fair disposable income left for discretionary spending.
Just wondering if anyone could input on our situation, and if I have left anything out, feel free to ask.
Thanks in advance.
Spouse’s/Partner's age: 54
Annual gross income from employment or profession: 80,000 private sector
Annual gross income of spouse: 28,000 private sector
Monthly take-home pay : 6000 approx
Type of employment: Both in Private Sector
In general are you:
(a) spending more than you earn, or
(b) saving? Now moving to saving more having had a lot of spending over past 10 years referring house
Rough estimate of value of home: 350,000
Amount outstanding on your mortgage: 58,000
What interest rate are you paying? 2.75% AIB, 1000 per month.
Other borrowings – car loans/personal loans etc: Car 19,000, 2 and a half years remaining, 680 per month, Personal Loan for upgrades at home, 5,500, 2.5 years remaining, 260 per month
Do you pay off your full credit card balance each month? Yes
Savings and investments: 90k in ARF and AMRF from previous employment 10 years ago. Currently starting a new job, so my previous pension scheme holds 110k approx. Not sure if these should be listed under this point, or the next Pension question. No other cash savings, all spare cash went into pension AVCs in general.
Do you have a pension scheme? Just moved employer, this question relates to what to do in this area. Previously had been maxing out AVCs to the 35% level employer/ employee, approx 2,300 per month. Wife contributes 200 per month to a scheme she has through her employer.Wife has about 40k in her PRSA.
Do you own any investment or other property? Yes, site which we will be selling for 55k approx, see further detail below.
Ages of children: None
Life insurance: 150k on wife, none on myself, as I have had a health issue 10 years ago, so insurance is hard to come by at a sensible premium, I had life cover under previous company pension scheme so wasn't an issue.
What specific question do you have or what issues are of concern to you?
Couple of questions I could do with expert input on.
1. I will be receiving a severance package of around 25k from my last employment and I will be selling a piece of property for 55k, so I will have 80k available by the end of the year to invest, or to pay off loans. I had intended to clear off the car loan (4.9%), personal loan (7.9%), and mortgage (2.75%)with this cash and leave us debt free. Is that a sensible approach? I have been reading on here a while, and the general slant seems to be to pay off any higher interest loans? I wonder should I retain the mortgage and just invest the cash, as the interest rate is relatively low, but the appeal of total debt free status is strong.
2. After that, I need to start my pension contributions again. My new employer is in the construction field, and doesn't operate conventional pension schemes, mores the CIF site operative schemes. I would intend to contribute the full 35% allowed myself. I was looking at something like a Standard Zurich PRSA which allows AVCs. Would that be a sensible option? I can't figure out the difference in a PRSA and an AVC PRSA? I presumed both might allow AVCs? Or is it as blindingly obvious that one does and one doesn't? I know which funds I'd like to pick there, I was thinking about a split of the Performance 35% , Balanced 35% , 5*5 Global 15% and International Equities 15%. Are the low cost brokers the sensible route here, or can the normal brokers move and negotiate on fees?
3. I need to do something with the pension scheme monies from my last employer. I was thinking about a Zurich Personal Retirement Bond. I can't seem to find the fee structure and charges on it, am I right in saying there might be a 3% commission and 1% AMC on something like that? I would be thinking about the same fund choices for it as the PRSA. I presume this would then be inaccessible for 5 years. Again, same question on fees - as I know what funds I want to choose, is there a lower cost fee structure available?
Its just my wife and I, we don't have kids, and I was hoping we could from here on have a debt free existence, with a decent monthly amount of 2500 gross going to our pensions, we both will most likely work till 65, and we would then still have a fair disposable income left for discretionary spending.
Just wondering if anyone could input on our situation, and if I have left anything out, feel free to ask.
Thanks in advance.
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