Why not pay off your mortgage early?
Once you are mortgage-free, you could start buying (tax-free) State savings products with your after-tax savings, while keeping your pensions invested 100% in equities.
I do want to leave both my children with a house when I die
You've certainly changed your tune on this.I disagree, I would invest in property
You've certainly changed your tune on this.
I'll need to dig it out - I thought I had a copy in my email but I can't find it right now.what are the ongoing costs on yours - the amc?
What I've done is set up a bare trust with a life company. The trust is for the benefit of my children when they are adults. I'm putting in almost the maximum possible under the small gift exemption limit each year, so this doesn't impact their lifetime inheritance threshold. That's invested in a cheap global equity fund. Life company looks after all the admin and pays the tax after 8 years, etc , saving me the efforts of doing tax returns.
If I'm not wealthy when they're finishing school, the fund will fully cover their 3rd level education. If I can afford to pay their education costs, I will, leaving them with a nice little starter fund. Stress free on my part, no tax returns, and I'm not tying myself into a cashflow negative investment if something goes wrong with a rental property.
Just tell her a random guy on the internet suggested it!I'd struggle to explain that to Mrs NRC at the end.......
Specifically in relation to putting money into my children's names, I like the simplicity of the life fund. I know it's legit from a tax perspective, and someone else does all the admin. I don't currently have to do a tax return so I don't mind paying someone 1% to look after the tax and admin aspects. However the number that the 1% is being calculated on is growing so I might review that.Red Onion- did you ever think about investing in an etf ? Y
I'm hoping that I won't need it for their education, but either way there's a 10 year plus horizon on it.
I should have been clearer to say that I meant 3rd level education.Or does it just pay out on their 18th birthday?
I should have been clearer to say that I meant 3rd level education
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