I agree with all the above .
Also , at 55, how many contributions will you have for the state pension ? I doubt if you will have 40 years , and if not, have you calculated how much your state pension will be reduced by then you get it at 66
Wife working part time with salary of €16k
You and your wife both need to maximise your pension contributions for your age bracket,
I think you would need €800K/1m in a fund to retire at that age.
Indeed, makes absolute sense, it really amazes me why so many with excess cash, (more than they need), continue to pay a chunk of their pay at the 40 % tax rate, when there is an easy to access, convienient and low cost vehicle, to avoid at least several thousand in PAYE,- their DC Pension Plan.You are borrowing €192k to put it on deposit at 0%!!!!
Clear both of your mortgages. That is the first step.
Brendan
I have my cash holdings earning 2% and my mortgages are approx 2.5%.You are borrowing €192k to put it on deposit at 0%!!!!
Clear both of your mortgages. That is the first step.
Brendan
€250k cash is from the sale of an overseas property that had increased substantially while we held itYou and your wife both need to maximise your pension contributions for your age bracket, - 25% at 40-49 and avail of the full entitlement for the tax breaks and then the associated tax free returns in the pension.
You should also be using the cash to pay backdated contributions for the prior year.
How did you come to be sitting on 250k cash?
What rate are your mortgages? I would imagine paying off your PPR today would also make sense.
Fair enough, but...I have my cash holdings earning 2% and my mortgages are approx 2.5%.
So even will approx €1mil on hand and full state pensions for both of us people still thinki should invest more into the pension now and continue working past 55?
Overseas deposit account but it is held in that warmer country that I will most likely retire to at 55 anyway.Fair enough, but...
where are you getting 2% on a cash deposit? If it's an old fixed rate, that is ok. But otherwise you are taking some risk - possibly currency risk to get 2%.
And is it taxable?
Brendan
I can "afford" to maximise contributions now but I do not want to sacrifice the now for the future if I did not need to that is the balance I am searching for.If you can't afford to max pension now, it doesn't bode well for affording early retirement.
What are your current outgoings?
What do you think they will they be in ten years?
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