Age: 40
Spouse’s/Partner's age: We are amicably separated- still friends and committed to raising the kids together
Covers half the kids' expenses + pays the electricity bill and broadband monthly
Annual gross income from employment or profession:
E55,000
Monthly take-home pay: €3,500.0
Type of employment:
Private sector
Expenditure pattern:
'saver' On average €850/month savings
Rough estimate of value of home
E485,000
Mortgage on home
E160,000
I pay the mortgage €1,200/month; 14years left on loan
In the ‘separation agreement’ we agreed I will keep the house after divorce next year
Mortgage provider: AIB
Type of mortgage: Variable
Interest rate: 2.75%
Other borrowings – car loans/personal loans etc
None
Do you pay off your full credit card balance each month?
N/A
Savings and investments:
E60,000 savings.
Do you have a pension scheme?
Not yet/Employer set up one in February 2020, but no payments were made due to COVID
Hoping to start pension monthly payments in Jan 2021 10%myself+10%Employer
Do you own any investment or other property?
Yes/ Apartment Valued at €90,000. Monthly rental income after tax and expenses paid is around €350
Ages of children:
8 and 4
Life insurance:
Mortgage Cover only €24/month
Death in Service- Employer
What specific question do you have or what issues are of concern to you?
Unsure how to best use savings. Would like to keep 20/25k savings untouched…So only €35/40k to play with and looking at the following options:
Your comments/suggestions would be greatly appreciated!
Spouse’s/Partner's age: We are amicably separated- still friends and committed to raising the kids together
Covers half the kids' expenses + pays the electricity bill and broadband monthly
Annual gross income from employment or profession:
E55,000
Monthly take-home pay: €3,500.0
Type of employment:
Private sector
Expenditure pattern:
'saver' On average €850/month savings
Rough estimate of value of home
E485,000
Mortgage on home
E160,000
I pay the mortgage €1,200/month; 14years left on loan
In the ‘separation agreement’ we agreed I will keep the house after divorce next year
Mortgage provider: AIB
Type of mortgage: Variable
Interest rate: 2.75%
Other borrowings – car loans/personal loans etc
None
Do you pay off your full credit card balance each month?
N/A
Savings and investments:
E60,000 savings.
Do you have a pension scheme?
Not yet/Employer set up one in February 2020, but no payments were made due to COVID
Hoping to start pension monthly payments in Jan 2021 10%myself+10%Employer
Do you own any investment or other property?
Yes/ Apartment Valued at €90,000. Monthly rental income after tax and expenses paid is around €350
Ages of children:
8 and 4
Life insurance:
Mortgage Cover only €24/month
Death in Service- Employer
What specific question do you have or what issues are of concern to you?
Unsure how to best use savings. Would like to keep 20/25k savings untouched…So only €35/40k to play with and looking at the following options:
- Use savings to make Lump Sum payment into mortgage to bring mortgage loan to €130/€140k and then switch to a fixed rate; available options from AIB now either 3year fixed at 2.35% or 5year fixed at 2.25% and possibly increase monthly payments to €1400 and reduce mortgage term to 10 years?
- Maximize permissible Lump sum payment into pension scheme(20%)- backdated for 2020 (Employer won’t contribute 10% for 2020) and possibly small 10k lump sum payment to mortgage- switch to a fixed lower rate as per above(3 or 5 year?) and increase monthly payments to €1400 with reduce mortgage term to 10years.
Your comments/suggestions would be greatly appreciated!