Q My wife inherited a house with her two siblings. You made the decision to sell it. We expect to have €200,000 in cash in six to nine months. We didn’t save. She is self-employed and her salary fluctuates, but she has earned at least €50,000 over the past three years. I work as an engineer in a global software company and earn €90,000. I also take home €30,000 in bonuses and shares each year. Can we use the €200,000 as a deposit and still take out a mortgage even though we haven’t saved?
A Yes absolutely, you can use the €200,000 you will inherit as security deposit, is the reply from Joey Sheahan, head of loans at online broker MyMortgages.ie. If you’ve paid rent, the monthly rent payments serve as evidence to the lender of your ability to make the monthly mortgage payments, he said. If you’re not paying rent, you have enough time between now and receiving the inheritance funds to start saving now to provide the mortgage lender with the required six months’ proof of savings, Mr Sheahan said.
Q My wife and I are currently insured under Vhi One Plan Extra. This plan has an annual fee of €1,646.78 each. She is 71 years old and I am 75 years old. We are both relatively healthy and have full medical cards. Vhi Healthcare recently emailed me saying my plan is being replaced with a plan called Enhanced Care Complete 75. No details on this plan or its costs were provided by the health insurance company. Can you recommend an alternative plan or possibly an alternative provider? We have been with Vhi Healthcare for almost 50 years now.
A The One Plan Extra program is one of the many plans that have now been discontinued by Vhi Healthcare. According to TotalHealthCover.ie’s Dermot Goode, it covers up to semi-private in private hospitals with some reimbursements for eligible outpatient expenses. Before considering Vhi’s proposed alternative plan, which has the same cost as your existing plan at €1,641 per adult, Mr Goode said you should consider an alternative Vhi business plan called PMI 3613. This costs €1,340 per adult. He said this is an excellent program covering the same hospitals, subject to a small deductible for each private hospital admission (€75 per claim). It includes excellent, high-tech cardiac coverage and higher reimbursements for eligible outpatient expenses without first paying a deductible, the broker said. If you’re ready to switch insurers, you might also consider Irish Life Health’s 4D Health 2 program for €1,351 each, or Laya Healthcare’s Simply Connect program for €1,361 each, Mr Goode said.
Q I contribute 25% of my income to my pension that I receive from Irish Life. I am fully aware of how markets can fluctuate, especially this year. However, I’m losing money right now, which is hard to accept. I’m wondering if I should stop my posts altogether or continue? Any advice would be welcome.
A Stock markets are volatile and will fluctuate up and down over time. They are particularly volatile at the moment given what is going on in the world. According to Joey Sheahan, director of MyLifeCover.ie, a long-term view is best. He said he would not worry about such a loss in the short term as it is inevitable that over a period of say 30 or 40 years you will see losses some years from now. When values in the market are falling, that’s the best time to buy, as there’s an opportunity to buy units at a lower level that will hopefully recover to previous levels over time, the financial adviser said. Mr Sheahan said you should continue making contributions to your pension as you are shopping at a lower level than you used to. It’s also important to review your risk profile and make sure you’re invested in the right funds. For example, someone with a high risk appetite might invest in funds that could see much larger movements. For example, this could include a 20 percent increase or decrease in stats over a short period of time. Someone with a low risk appetite might invest in lower-risk funds that would see much smaller movements, perhaps 3 or 5 percent up or down in a short period of time. Mr. Sheahan recommends that you seek advice from a financial advisor before making any retirement decisions.
https://www.independent.ie/business/personal-finance/can-an-inheritance-be-used-for-a-deposit-as-we-have-no-savings-41825924.html Can an inheritance be used for a deposit as we have no savings?