Incoming Bonus
Discussion
Hi Pistonheads, after some Financial Advice from your goodselves.
I'm due to receive a bonus of around £20K - and I'm unsure what do with it. There's various factors to consider;
- Just turned 40
- Annual salary is Mid-60's, due to increase to Mid-70's
- Large mortgage of £350K
- Hold shares in my name valued around £70K
- ISA in my name £10K
- ISA in wife's name £25K
- My pension is valued around £120K
- Wife's pension is valued around £30K
What would be your advice in normal course of events and how would it differ if there's a potential divorce on the horizon
Thanks in advance all!
I'm due to receive a bonus of around £20K - and I'm unsure what do with it. There's various factors to consider;
- Just turned 40
- Annual salary is Mid-60's, due to increase to Mid-70's
- Large mortgage of £350K
- Hold shares in my name valued around £70K
- ISA in my name £10K
- ISA in wife's name £25K
- My pension is valued around £120K
- Wife's pension is valued around £30K
What would be your advice in normal course of events and how would it differ if there's a potential divorce on the horizon
Thanks in advance all!
Interesting last line there.
Assuming you've been married 2 years, and have no kids, and your wife hasn't had to compromise her career to support your career, it makes no difference.
A court will just split all assets 50:50
You need more in your pension, you need to pay down your mortgage. You need to take a holiday. You don't need more money in shares, but you could do with a better rainy day fund.
I'd be putting 25% into pension,mortgage, holiday and cash or ISA savings.
Assuming you've been married 2 years, and have no kids, and your wife hasn't had to compromise her career to support your career, it makes no difference.
A court will just split all assets 50:50
You need more in your pension, you need to pay down your mortgage. You need to take a holiday. You don't need more money in shares, but you could do with a better rainy day fund.
I'd be putting 25% into pension,mortgage, holiday and cash or ISA savings.
Potential divorce the cards you say, buy a sports car.
Good numbers on savings though, i'm similar earnings/age but never get bonus's in my sector and don't have anywhere near that saved but do have the same sized mortgage. Would be a shame for that achievement to diluted if you did get divorced.
Good numbers on savings though, i'm similar earnings/age but never get bonus's in my sector and don't have anywhere near that saved but do have the same sized mortgage. Would be a shame for that achievement to diluted if you did get divorced.
Edited by VeeReihenmotor6 on Tuesday 27th February 11:35
dingg said:
Wot e said
Especially if you're about to bin the missus
Other way around unfortunately. Should just add one child approaching secondary school age and marriage is hanging by a thread. Especially if you're about to bin the missus
The plan was to pay down the mortgage and build a nest for the future, now I'm not sure if I should be following that path or adopting a different strategy.
Sharp119 said:
Other way around unfortunately.
ah sorry to hear that. You've had a good run with building a good base which unfortunatley you're likely to loose 50% of. Can you put this money somewhere else, like give to a parent or put into an ISA from your child? It's really £10k rather than £20k if the divorce is likely so may as well just take it off the table. VeeReihenmotor6 said:
ah sorry to hear that. You've had a good run with building a good base which unfortunatley you're likely to loose 50% of. Can you put this money somewhere else, like give to a parent or put into an ISA from your child? It's really £10k rather than £20k if the divorce is likely so may as well just take it off the table.
I'm open to putting the lot into whatever financial vehicle is suitable for my child, as I'd rather they have what's left after tax, than it being reduced to next to nothing in a divorce. Just a case of opening an ISA in their name?Given the impending divorce it probably doesn't make any difference, you probably aren't going to see it anyway.
Give that between you, you are likely to be facing a bill, do it amicably and it will be smaller, then I would save it, rather than spending it. If you put it in your pension, you won't be able to touch it in order to pay the bill.
All your joint assets will count, regardless of what form they take. But buying something is bound to be worth less when you sell it.
That is all very sad and boring, but is probably the sensible approach.
But on a YOLO scale, get something fast and exciting.
Give that between you, you are likely to be facing a bill, do it amicably and it will be smaller, then I would save it, rather than spending it. If you put it in your pension, you won't be able to touch it in order to pay the bill.
All your joint assets will count, regardless of what form they take. But buying something is bound to be worth less when you sell it.
That is all very sad and boring, but is probably the sensible approach.
But on a YOLO scale, get something fast and exciting.
simon800 said:
Sharp119 said:
What would be your advice in normal course of events and how would it differ if there's a potential divorce on the horizon
Is it worth spending some on marriage counselling and avoiding this outcome? Open the JISA now before end of tax year , fully fund and then fund again 6 April . Bonus ( after tax ) consumed and some ......
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