After years of hard slog I am finally a higher rate tax payer. As my financial situation has now changed I'm reviewing my 'finances'. I have some spare cash at the end of each month and was wondering where is it going to work harder for me:
option 1 - overpaying the mortgage?
option 2 - paying it into a low cost pension?
option 3 - in cash isas?
option 4 - in index tracking share isas?
I know this isn't an easy question, there are just so many variables, which is why I've posted it here, has anyone else given this some thought?
Thanks in advance,
Ben.
2006-12-14 07:51:56 · 5 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
ben,
make sure you add the risk factors in each equation. pay off house has gaureenteed r.o.i.
pay on pension has higher risk if not in it for long term. option 3 and 4 i don't know about.
one factor is your age and desired 'retirement' age.
visit daveramsey.com for commonsense approach to your money.
2006-12-14 14:39:44 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Have you considered saving the extra money in cash Isa and if you reach the £3000 annual limit then an additional savings account and then transfering to an offset mortgage.
Just a suggestion.
Before you actually make your decision I would strongly recommend you take good professional advice.
Good Luck
2006-12-14 08:51:13 · answer #2 · answered by angie 5 · 0⤊ 0⤋
They're all good ideas. Do you have enough to do a little of all of them? It's excellent to see you want to do something smart with your money. Remember, anything you do needn't be perfect. Just good. You can always change your mind later.
2006-12-14 17:50:30 · answer #3 · answered by Big R 6 · 0⤊ 0⤋
Arrange a chat with your Bank. They could suggest more suitable answers
2006-12-14 07:55:32 · answer #4 · answered by Anonymous · 0⤊ 0⤋
as above
2006-12-15 04:04:19 · answer #5 · answered by dream theatre 7 · 0⤊ 0⤋