Can an inheritance be used for a deposit as we don’t have any savings?
Q My wife inherited a house with her two siblings. They made the decision to sell it. We expect to have €200,000 in cash within six to nine months. We haven’t saved. She is self-employed and her salary fluctuates, but she has earned at least €50,000 in the past three years. I work as an engineer in a global software company and my salary is €90,000. I also receive €30,000 a year in bonuses and shares. Can we use the €200,000 as a security deposit while getting a mortgage, even if we haven’t saved?
A Yes, absolutely, you can use the €200,000 you will inherit as a deposit, answers Joey Sheahan, credit manager at online broker MyHypothèques.fr. If you pay rent, the monthly rent payments will serve as proof to the lender of your ability to meet monthly mortgage payments, he said. If you’re not paying rent, there’s plenty of time between now and the time you receive the inheritance funds to start saving now so you can show the mortgage provider the necessary savings record of six months, Mr. Sheahan said.
Q My wife and I are currently insured under Vhi One Plan Extra. This plan has an annual cost of €1,646.78 each. She is 71 and I am 75. We are both in relatively good health and have full medical cards. Vhi Healthcare recently sent me an email telling me that my plan was being replaced with a plan called Enhanced Care Complete 75. No details about this plan, or its cost, were provided by the health insurer. Could you recommend another plan or provider if needed? We have been with Vhi Healthcare for nearly 50 years now.
A The One Plan Extra program is one of many plans that have now been retired by Vhi Healthcare. According to Dermot Goode of TotalHealthCover.ie. Before you consider the alternative plan offered by Vhi, which is the same cost as your existing plan at €1,641 per adult, Mr Goode said you should consider an alternative Vhi company plan called PMI 3613. It costs €1 €340 per adult. According to him, this is an excellent scheme covering the same hospitals, subject to a small deductible for each admission to a private hospital (€75 per claim). It includes excellent high-tech cardiac coverage and higher reimbursements on eligible outpatient expenses with no deductible to pay first, the broker said. If you’re ready to switch insurers, you could also consider Irish Life Health’s 4D Health 2 program at €1,351 each, or Laya Healthcare’s Simply Connect program at €1,361 each, Mr Goode said.
Q I contribute 25% of my income to my pension, which is with Irish Life. I am fully aware of how markets can fluctuate, especially this year. That said, I’m losing money right now, which is hard to accept. I wonder if I should stop my contributions completely or should I continue? Any opinions will be welcome.
A Stock markets are volatile and will fluctuate up and down over time. They are particularly volatile right now given what is happening in the world. A long-term view is best, according to Joey Sheahan, director of MyLifeCover.ie. He said he wouldn’t worry about a loss like this in the short term because it’s inevitable that you’ll see losses in some years over, say, a 30 or 40 year period. When values fall in the market, it’s the best time to buy because there is an opportunity to buy units at a lower level, which will hopefully recover to previous levels over time, the adviser said. financial. Mr Sheahan said you should continue to contribute to your pension, on the basis that you buy at a lower level than previous values. It is also important to review your risk profile and ensure that you are invested in the appropriate funds. For example, someone with a high risk appetite might invest in funds that might show much larger movements. This could include, say, a 20% increase or decrease in values over a short period of time. A person with a low risk appetite could invest in low risk funds, which would have much smaller moves, perhaps moving 3 or 5% up or down in a short period. Sheahan recommends that you seek advice from a financial adviser before making any decisions about your pension.