jabberwocky
Registered User
- Messages
- 14
Hi all,
I was directed here from another site, I hope I'm not running afoul of your forum etiquette in this post. I've done a few searches and gleaned some good information although there are a few things I'd like to run by you.
In essence: I am Irish, resident here, 31, single and no kids, no debt to my name. I am entertaining a plan of having a working retirement from age 45 or so, the idea being to purchase a property somewhere in the Mediterranean and run either a pub or a hostel. I've lived there before and I speak Spanish, and while it's a pipe-dream and liable to change it's a decent goal to work towards.
With that in mind, I have some thoughts questions you good folk might be able to comment on.
First, I earn €70k per year and my company offer a 5% pension match. I maintain around about €12k in an AIB current account for emergency expenses.
I have not yet started to pay into my pension, which is offered by IrishLife, and starting end of March I am going to contribute 5% of my salary to get the match. Of this contribution (€7k annually with the match), I am considering a spread of 10% bonds and 90% equities, those equities being split between their Indexed World Equity Fund(1) at 10% (which has 59% of its distribution in US companies) and 80% towards their Indexed 50/50 Equity Fund(2) which has 50% Eurozone and 33% US, amongst others.
Given my age and situation, I think this is a good balance, although I would appreciate any comments on it. I am also considering giving 10% to emerging markets(3). All these funds have around 0.65 - 0.75% management fees. Does that sound reasonable?
Second, and getting to the meat of my question; because I work remotely most of the time, I have some opportunities to save on the cost-of-living and avoid paying Dublin-area rents. I can, for example, return to Spain for the summer months and pay rent of approximately €400 per month, and spend a few months over the winter with my parents, who are getting on in life. This means, over the course of a year, my expenditure is very low and it allows me to consider having €2,500 a month free to invest. Let's say €2,000 for the purposes of this post.
Which is where I am at a loss. I don't know what to do with it. I would like to put €1k a month into an AIB 21-day notice saving account, which only offers 0.25% AER but would be very beneficial to me if I wanted to ask them for a mortgage (for a Dublin apartment to rent, not live in). But there may be other options I am unaware of; for example picking some ETFs and using a company like Davy. I don't think we have many tax-advantaged accounts in Ireland that I can utilise and withdraw from in my early 40s? Would you have any suggestions for me on how I can most efficiently put €2000 per month to use over the next ten years that would give me some options when I hit the big four-zero?
Many thanks, and apologies for the missive.
(1,2,3) PDF documents and Links I cannot post! But they are on ILIM's website.
I was directed here from another site, I hope I'm not running afoul of your forum etiquette in this post. I've done a few searches and gleaned some good information although there are a few things I'd like to run by you.
In essence: I am Irish, resident here, 31, single and no kids, no debt to my name. I am entertaining a plan of having a working retirement from age 45 or so, the idea being to purchase a property somewhere in the Mediterranean and run either a pub or a hostel. I've lived there before and I speak Spanish, and while it's a pipe-dream and liable to change it's a decent goal to work towards.
With that in mind, I have some thoughts questions you good folk might be able to comment on.
First, I earn €70k per year and my company offer a 5% pension match. I maintain around about €12k in an AIB current account for emergency expenses.
I have not yet started to pay into my pension, which is offered by IrishLife, and starting end of March I am going to contribute 5% of my salary to get the match. Of this contribution (€7k annually with the match), I am considering a spread of 10% bonds and 90% equities, those equities being split between their Indexed World Equity Fund(1) at 10% (which has 59% of its distribution in US companies) and 80% towards their Indexed 50/50 Equity Fund(2) which has 50% Eurozone and 33% US, amongst others.
Given my age and situation, I think this is a good balance, although I would appreciate any comments on it. I am also considering giving 10% to emerging markets(3). All these funds have around 0.65 - 0.75% management fees. Does that sound reasonable?
Second, and getting to the meat of my question; because I work remotely most of the time, I have some opportunities to save on the cost-of-living and avoid paying Dublin-area rents. I can, for example, return to Spain for the summer months and pay rent of approximately €400 per month, and spend a few months over the winter with my parents, who are getting on in life. This means, over the course of a year, my expenditure is very low and it allows me to consider having €2,500 a month free to invest. Let's say €2,000 for the purposes of this post.
Which is where I am at a loss. I don't know what to do with it. I would like to put €1k a month into an AIB 21-day notice saving account, which only offers 0.25% AER but would be very beneficial to me if I wanted to ask them for a mortgage (for a Dublin apartment to rent, not live in). But there may be other options I am unaware of; for example picking some ETFs and using a company like Davy. I don't think we have many tax-advantaged accounts in Ireland that I can utilise and withdraw from in my early 40s? Would you have any suggestions for me on how I can most efficiently put €2000 per month to use over the next ten years that would give me some options when I hit the big four-zero?
Many thanks, and apologies for the missive.
(1,2,3) PDF documents and Links I cannot post! But they are on ILIM's website.