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Need advice re spare cash

  • 08-05-2022 6:19pm
    #1
    09_09_09
    Registered Users Posts: 595 ✭✭✭ 09_09_09


    Hi folks,

    We have €60,000 in the savings and circa €20,000 in the current account. We had a plan to trade up to bigger house and let out the current house, but currently house prices are rocketing so do not wish to pursue this.

    Our mortgage balance is €99,000 and current mortgage rate is 2.75 variable and can move to 1.95 fixed rate offered by Avant money. However, we are overpaying our mortgage so it will finish in 7 years (fingers crossed).

    Option A is to pay lump sump €50,000 towards mortgage and keep the rest for rainy day.

    Option B is to maximise our pension contributions and pay whatever is left from €50k pot towards mortgage. Currently I am paying €200 per month (age 37) and spouse is paying €100 per month (age 32). Do not have a kid yet, if this helps.

    Option C is to invest circa €25,000 towards Alphabet, Tesla and Amazon shares as they seem to be good value at the moment and pay €25,000 towards the mortgage.

    Option D is to invest €25,000 through Zurich Savings Plus and pay €25,000 towards the mortgage. Currently investing €101 per month through them.

    Option E any other recommendation?

    Please offer any advice so we can make the best decision.

    Thanks in advance.



Comments

  • #2
    Patsy167
    Registered Users Posts: 1,615 ✭✭✭ Patsy167


    Option B - Maximize pension AVC's. It's the most tax efficient option.



  • #3
    macvin
    Registered Users Posts: 717 ✭✭✭ macvin


    Drip feed the savings into your spending and at the same time put 65% more than you are drip feeding into additional pension contributions.

    Assuming you are high rate tax, this gives you maximum return.

    If you wanted to do it quickly, put every cent you earn over the high tax band into pension fund such as Zurich Prisma 4 or 5 (mostly tech stocks) and transfer that amount less 40% from savings into current account, so your monthly income stays the same.

    This will allow you put 40k extra into pension for a net cost of 24k and pro rata for whatever amount you decide



  • #4
    squigglestrebor
    Registered Users Posts: 275 ✭✭ squigglestrebor


    Do not buy tesla shares.



  • #5
    erlichbachman
    Registered Users Posts: 515 ✭✭✭ erlichbachman


    Most cryptos have lost 50-60% value the past few weeks, wont be too long before they gat that back.



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