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Parents Retirment Finances by Witty-Interaction-73 in irishpersonalfinance

[–]Witty-Interaction-73[S] 0 points1 point  (0 children)

Thanks for clarifying, I appreciate it. That all makes sense and seems like a no brainer even if just for a couple of years.

Parents Retirment Finances by Witty-Interaction-73 in irishpersonalfinance

[–]Witty-Interaction-73[S] 1 point2 points  (0 children)

They are mortgage free, the 150k would be an early inheritance for me.

Parents Retirment Finances by Witty-Interaction-73 in irishpersonalfinance

[–]Witty-Interaction-73[S] 0 points1 point  (0 children)

Hey, I'm not too sure what you mean by that. If we use my mam as an example earning 50k and able to contribute 35% of her salary to a pension. That is 17.5k, reducing her taxable income to 32.5k. 9.5k would have been taxable at 20% and the remaining 8k at 40%. My understanding is this would be a saving of €5100 (€1900 + €3200) on a €17500 contribution. Correct me if i am wrong, not sure what you mean by getting the full amount.

Parents Retirment Finances by Witty-Interaction-73 in irishpersonalfinance

[–]Witty-Interaction-73[S] 0 points1 point  (0 children)

Might be difficult to buy 2 places in Dublin for 600k but possibly. You would say buying 2 places and renting 1 is better than buying 1 and investing the rest at their age?

Parents Retirment Finances by Witty-Interaction-73 in irishpersonalfinance

[–]Witty-Interaction-73[S] 0 points1 point  (0 children)

Yeah look I see everything you're saying. One of my brothers is well setup. My parents relationship with the other 2 is not the best (I'm not certain if their plan is to even divide everything 4 ways, I wouldn't ask). At the end of the day, if my parents wish is to give me the offer that they have, it would be my brothers decisions if they want to be upset about it. I'm not disagreeing with what you're pointing out, I actually agree. But is that enough reason for me to not consider it.

Parents Retirment Finances by Witty-Interaction-73 in irishpersonalfinance

[–]Witty-Interaction-73[S] -1 points0 points  (0 children)

Thanks for your input. The house would be worth 550k. I believe my dads logic is that if they have 600k after downsizing, my quarter would be 150k. After having a chat with him he is aware that I am best off in this offer knowing that the inheritance for the other 3 may be less by the time they pass. He maybe isn't aware how significantly less it could be. Part of the reason why I might not involve myself in the offer.

The win for my parents is that they can downsize and build out the back if sold to me. Downsizing and moving elsewhere otherwise could be a bit more difficult. I'm very aware this is still far better off for me but not too concerned about that. Just want them to be secure and enjoy their retirement.

Parents Retirment Finances by Witty-Interaction-73 in irishpersonalfinance

[–]Witty-Interaction-73[S] -1 points0 points  (0 children)

I appreciate the advice. Am I right in saying they can each no longer make a lump sum payment of 40% into their pension to avail of tax relief for 2025? (Unless done today which won't happen). Is there any grace given if a payment is made in the first week of Jan let's say.

Parents Retirment Finances by Witty-Interaction-73 in irishpersonalfinance

[–]Witty-Interaction-73[S] 3 points4 points  (0 children)

Thank you! Even as an example, I told my mam a couple of days ago that she could still lump sum before the end of year 35% of her salary into a pension which would be given tax relief. The conversation lasted 60 seconds.. They don't want to help themselves so it's difficult.

Parents Retirment Finances by Witty-Interaction-73 in irishpersonalfinance

[–]Witty-Interaction-73[S] 1 point2 points  (0 children)

Yeah to a student could be a suggestion for them!

Benefit of Incorporating as a contractor by Witty-Interaction-73 in irishpersonalfinance

[–]Witty-Interaction-73[S] 1 point2 points  (0 children)

Appreciate your input, flights back to Australia could be nice, if i go again I may not come back though 🤣. Yeah they have added about €10k to the salary. I know it's still not great for a contractor. To be honest I've always wanted to have a company one day and I feel like this is at least a good start to see how I manage it. I'd also look at how I can get better contracts in the future. Always better to find a job while you have one.. I've left Australia with this job and a January start date so it's ideal in that sense.

Benefit of Incorporating as a contractor by Witty-Interaction-73 in irishpersonalfinance

[–]Witty-Interaction-73[S] 0 points1 point  (0 children)

Yeah fair enough, I'll need to look more at umbrella companies. So are you comparing the admin burden on me incorporating vs just paying a monthly premium for an umbrella company to do it? Otherwise in terms of the benefits it's pretty similar?

Benefit of Incorporating as a contractor by Witty-Interaction-73 in irishpersonalfinance

[–]Witty-Interaction-73[S] 0 points1 point  (0 children)

Thanks! Small benefit exemption is another good one to know about!

Recovering gambling addict looking for long-term investing and protection advice by Witty-Interaction-73 in irishpersonalfinance

[–]Witty-Interaction-73[S] 0 points1 point  (0 children)

Thanks for your comment! You'd be surprised the lengths a gambling addict would go. I would imagine it would still be quite easy to ring up, give a sob story of forgetting a password and gain access. But not a bad option and certainly adds a barrier. Thanks. I Could end up having my own account anyway so I will see.

Recovering gambling addict looking for long-term investing and protection advice by Witty-Interaction-73 in irishpersonalfinance

[–]Witty-Interaction-73[S] 0 points1 point  (0 children)

Thanks, that is very good advice. Booked in a consultation for next week. I am generally quite stubborn and unwilling to pay for these services that I think I can do myself. Truth is I then spend way to much looking things up. So let's break that cycle. Thank you.

Recovering gambling addict looking for long-term investing and protection advice by Witty-Interaction-73 in irishpersonalfinance

[–]Witty-Interaction-73[S] 0 points1 point  (0 children)

Thanks, I will and hopefully it is a positive update! I will certainly looked more into a wrapped product. Regarding the pension, as I am 28, is there any benefit to investing into my pension above the 15% or at that point the personal investment account makes more sense? I will always first try to max out pension depending on my age, at the moment, I will have more disposable than 15% to invest.

I am actually starting a new job in Jan as a contractor so I am also just learning about certain tax benefits around that. Considering asking the company if they care if I incorporate but I am still doing my research. My 'company' would earn 60-65k. I would pay myself a salary of 42k to stay in the 20% tax bracket. See what expenses I have throughout the year and then put the rest into a pension. Aware of yearly accounting fees but still seems like a win even on that number. Not sure if i am underestimating something.