Age: 37 (nearing 38 though).
Spouse’s/Partner's age: NA
Annual gross income from employment or profession: 74,000.
Annual gross income of spouse: NA.
Monthly take-home pay: 2100 (after Pension (20%) & ESPP (15%)).
Additional monthly Income: 1160 from rent a room.
Type of employment: Private Sector.
In general are you: Saving. At this time approximately 13,000 per annum. I cash my ESPP as soon as I get them to avoid capital gains. I do pay the income tax due.
Rough estimate of value of home: 230,000.
Amount outstanding on your mortgage: 88,000, 8 years left having reduced the term by 3 years pre 2011.
What interest rate are you paying? 0.75% tracker.
Other borrowings: None.
Do you pay off your full credit card balance each month? Yes.
Savings and investments: 90,000 in cash and approximately 50,000 in unvested shares (value calculated after tax). It will take 4 years for shares to fully vest. In 4 years, they could be worth more or they could be worth less.
Do you have a pension scheme? Yes, approximately 115,000. My monthly contribution is 20% and employers is 5%
Do you own any investment or other property? No
Ages of children: NA
Life insurance: Personal life insurance and my company offer death in service pay out of 4 times my salary
What specific question do you have or what issues are of concern to you?
I realize that I am financially in a very solid position. I could pay off my mortgage tomorrow but I do not want to do that as I will never get money that cheap again. The quarterly interest charged to my mortgage account is very small.
My long term plan (3 – 5 years) is to buy my final house. Ideally I would like to keep my current house as this could be of value come retirement. I am making max contributions to my pension fund but there is always a chance that this may not be enough come retirement. I won’t be able to keep paying the max amount until I retire and I am sure there will be future recession(s) that will impact its value.
My question is, do I stay the course? Keep it simple, keep building a cash pile and put the cash towards my final house to minimise the mortgage needed to purchase it. My current cash amount is with a main bank and earning tiny interest. I have looked at others but their AER is just as small. It has taken a long time to save that amount. I am risk adverse but at the same time I don’t want wealth eroded due to being overly prudent. Any views greatly appreciated.
Spouse’s/Partner's age: NA
Annual gross income from employment or profession: 74,000.
Annual gross income of spouse: NA.
Monthly take-home pay: 2100 (after Pension (20%) & ESPP (15%)).
Additional monthly Income: 1160 from rent a room.
Type of employment: Private Sector.
In general are you: Saving. At this time approximately 13,000 per annum. I cash my ESPP as soon as I get them to avoid capital gains. I do pay the income tax due.
Rough estimate of value of home: 230,000.
Amount outstanding on your mortgage: 88,000, 8 years left having reduced the term by 3 years pre 2011.
What interest rate are you paying? 0.75% tracker.
Other borrowings: None.
Do you pay off your full credit card balance each month? Yes.
Savings and investments: 90,000 in cash and approximately 50,000 in unvested shares (value calculated after tax). It will take 4 years for shares to fully vest. In 4 years, they could be worth more or they could be worth less.
Do you have a pension scheme? Yes, approximately 115,000. My monthly contribution is 20% and employers is 5%
Do you own any investment or other property? No
Ages of children: NA
Life insurance: Personal life insurance and my company offer death in service pay out of 4 times my salary
What specific question do you have or what issues are of concern to you?
I realize that I am financially in a very solid position. I could pay off my mortgage tomorrow but I do not want to do that as I will never get money that cheap again. The quarterly interest charged to my mortgage account is very small.
My long term plan (3 – 5 years) is to buy my final house. Ideally I would like to keep my current house as this could be of value come retirement. I am making max contributions to my pension fund but there is always a chance that this may not be enough come retirement. I won’t be able to keep paying the max amount until I retire and I am sure there will be future recession(s) that will impact its value.
My question is, do I stay the course? Keep it simple, keep building a cash pile and put the cash towards my final house to minimise the mortgage needed to purchase it. My current cash amount is with a main bank and earning tiny interest. I have looked at others but their AER is just as small. It has taken a long time to save that amount. I am risk adverse but at the same time I don’t want wealth eroded due to being overly prudent. Any views greatly appreciated.