Age: 40
Spouse’s/Partner's age: 39
Annual gross income from employment or profession: 140K
Annual gross income of spouse: 0 (Career break/Rearing children)
Monthly take-home pay: 6K +
Type of employment: Private Sector
In general are you:
(a) spending more than you earn, or
(b) saving? Approx 35K Per Annum
Rough estimate of value of home; 500K
Amount outstanding on your mortgage: 0
What interest rate are you paying?
Other borrowings – car loans/personal loans etc None
Do you pay off your full credit card balance each month?
If not, what is the balance on your credit card? None
Savings and investments: 200K in deposit accounts
Do you have a pension scheme? Yes, defined benefit
Do you own any investment or other property? Yes approx 130K worth on a tracker mortgage
Ages of children: 2,4,8
Life insurance: Yes
What specific question do you have or what issues are of concern to you?
My husband and I are very fortunate to have no debt and approx 200K of savings.
I am looking for invest advice as we have money making no interest in the bank. Open to any suggestions...
I am also interested in stocks and shares but need to understand more about setting up a portfolio and tax element involved, any advice or recommendations on someone i can speak with in Ireland or advice from what others have done recently. Its a minefield of information once i go googling.
here is some general advice I gave to another poster which might make sense for you....
As regards investments etc., I think a rule of thumb of a third in equity, a third in property and a third liquid is a reasonable approach. Include all your assets in these calculations (so find out how your pension is allocated) as well as your house. It might seem wasteful to leave a third liquid in a low interest environment, but Government/Corporate bonds offer some returns. An often forgotten advantage of liquidity is having the cash to do something when a crash hits, which will happen every decade or so. If you wanted a second property as an example, but were not in a hurry, I'd save the cash and wait to buy at the right time, which could either be another crash (might not be so far away depending on this darned virus....) or just some good opportunistic option that comes along later. I'd also recommend that your equity be aggressive (i.e. high growth) given your age, plenty of time in your 50's to get more careful there. You can play with these figures depending on you risk appetite, here is an example of a reasonably aggressive portfolio for you age
1. 20 % aggressive stocks (e..g tech etc)
2. 20% other stocks (e..g phara etc, good long term growth prospects)
3. 30-40% property, can include REITs and other property equivalents as well as your house. Stick to the higher end as the lower returns are worth it versus the risk of the second tier stuff, unless you know what you are doing in the shark infested property world
4. 20%-30% liquid, best returns you can get (includes bonds and corporate, but like property, avoid the riskier ones)
All of this depends on your life ambitions as I said, but the above is a reasonable approach for now.
here is some general advice I gave to another poster which might make sense for you....
As regards investments etc., I think a rule of thumb of a third in equity, a third in property and a third liquid is a reasonable approach. Include all your assets in these calculations (so find out how your pension is allocated) as well as your house. It might seem wasteful to leave a third liquid in a low interest environment, but Government/Corporate bonds offer some returns. An often forgotten advantage of liquidity is having the cash to do something when a crash hits, which will happen every decade or so. If you wanted a second property as an example, but were not in a hurry, I'd save the cash and wait to buy at the right time, which could either be another crash (might not be so far away depending on this darned virus....) or just some good opportunistic option that comes along later. I'd also recommend that your equity be aggressive (i.e. high growth) given your age, plenty of time in your 50's to get more careful there. You can play with these figures depending on you risk appetite, here is an example of a reasonably aggressive portfolio for you age
1. 20 % aggressive stocks (e..g tech etc)
2. 20% other stocks (e..g phara etc, good long term growth prospects)
3. 30-40% property, can include REITs and other property equivalents as well as your house. Stick to the higher end as the lower returns are worth it versus the risk of the second tier stuff, unless you know what you are doing in the shark infested property world
4. 20%-30% liquid, best returns you can get (includes bonds and corporate, but like property, avoid the riskier ones)
All of this depends on your life ambitions as I said, but the above is a reasonable approach for now.
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