Westsider79
Registered User
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- 15
This jumps out. You've a loan at 5.9%, but putting money into a Zurich fund? The Zurich fund would need to be making 12 to 14% (allowing for fees and tax) to cover the cost of the loan.Credit union loan- 5.9% Interest around 13,000 left paying 435 per month
It's an expensive comfort blanket. You've enough in the Zurich fund and savings to immediately pay off the car loan, and save 1,100 in interest. Start fresh, build up a little rainy day fund (you don't need much - you're both in employment, and you both have income protection).Thanks for the reply. I suppose we view the zurich fund as long term and preparing us in some way for kids college fees etc. Might be the wrong way of thinking but I'd feel anxious if we didn't have some form of long term savings in the bag?
Appreciate response and will seriously look at clearing the loan. The Zurich is a savings plus product split between cautiously management and prisma risk level 4? I do have some AVC and my spouse pays around 250 a month into his, we have been looking at increasing this though.Still makes sense to clear the loan first.
Not only are you borrowing €13k at 5.9%, you also have €3.5k in the CU most likely earning nothing.
What's the Zurich money invested in?
Pensions are normally the best investment once you have your home and don't have expensive unsecured loans. Maybe you're already covered with yours (or could you be boosting it with some sort of AVC?) but your partner's €50k at age 44 seems pretty paltry given the household income. It may need boosting?
Saving the child benefit in the post office probably isn't the best use of those funds.
Thanks for your response and I can see exactly what you are saying so we will have a good think about this.It's an expensive comfort blanket. You've enough in the Zurich fund and savings to immediately pay off the car loan, and save 1,100 in interest. Start fresh, build up a little rainy day fund (you don't need much - you're both in employment, and you both have income protection).
With the car loan out of the way, you'll have a much clearer view of monthly savings capacity.
Then focus on spouses pension, and the mortgage.
There is a really flexible feature with your PTSB mortgage that not many customers realise - if you overpay, you can build up a 'credit', and then take a break from mortgage payments in future when other expense come up.
Have a look through this: https://www.askaboutmoney.com/threads/how-overpaying-a-ptsb-mortgage-works.215065/
Keep it simple!
If that's a long term investment then, in my opinion, the cautious part doesn't make sense. I would be of the opinion that it should be in a high equity content find, ideally a tracker rather than actively managed. But others may disagree.The Zurich is a savings plus product split between cautiously management and prisma risk level 4?
Thanks I'll be honest and say I know very little of the ins and outs of investments. A financial advisor through work set this up a couple of years ago, got us to fill out some forms to assess risk appetite and this is what they came up with??If that's a long term investment then, in my opinion, the cautious part doesn't make sense. I would be of the opinion that it should be in a high equity content find, ideally a tracker rather than actively managed. But others may disagree.
They got their commission regardless of what you're invested in!A financial advisor through work set this up a couple of years ago, got us to fill out some forms to assess risk appetite and this is what they came up with??
Fair enough, any advice on options for long term investment/ best products etc? Many thanksThey got their commission regardless of what you're invested in!
Yes.Fair enough, any advice on options for long term investment/ best products etc? Many thanks
I've already given you a general suggestion above.Fair enough, any advice on options for long term investment/ best products etc? Many thanks
OK fair point...I was just asking for future investment products.Yes.
PAY OFF THE 5.9% CAR LOAN.
Simple.
I don't charge commission.
OK thanksI've already given you a general suggestion above.
Family home mortgage information
Lender PTSB
Interest rate 2.9%
If fixed, what is the term remaining of the fixed rate? 18 months remaining on fixed
Thanks our mortgage interest is actually 2.5% and since im still on probation in new job probably can't look at switching until I'm through that.It might be worth investigating switching your mortgage. Interest rates are going up and a switch might save you c. €1000 p.a. at current rates before break fees/solicitor fees. Your requirement for certainty will be a factor here. BOI/AIB might be an option here.
The Zurich is a savings plus product split between cautiously management and prisma risk level 4?
If that's a long term investment then, in my opinion, the cautious part doesn't make sense. I would be of the opinion that it should be in a high equity content find, ideally a tracker rather than actively managed. But others may disagree.
They got their commission regardless of what you're invested in!
Fair enough, the advisor went with a standard 60/40 fund, which is difficult to criticise.However as someone who has often dismissed the whole Financial Advice industry on here I wouldn't agree with RedOnion's criticism. The product you got may not be the best balance of risk/reward, but tilting the balance toward the less risk end is not malpractice or incompetence, as we see too often
Or a short term strategy in this specific case.Someone holding a mortgage (a negative bond) to invest in bonds is questionable as a long term strategy in my personal view.
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