To be rich or not to be.......

swiss69

You are making a big assumption that Barclays shares will be £7.70 or so from todays price of £1.80 odd! Good luck!!

wakeupalarm

In 5 years time you could have 2 or 3 kids. Paying off a mortgage or having a share portfolio may not be an option.:eek:

iamesbo

wakeupalarm wrote: »

In 5 years time you could have 2 or 3 kids. Paying off a mortgage or having a share portfolio may not be an option.:eek:

It will be with tax credits, should have plenty of dosh then.

jamesd

You're choosing to invest now and for the next few years. I don't see a reason for you to change from investing to paying off the mortgage in five years when you clearly have a long term wealth objective that's best served by long term investing.

Market conditions will dictate the short term plan five years from now. If it's clearly a boom you might want to be more cautious until the next bust part of the cycle.

Equities long term are expected to deliver a few percent more than the mortgage repayments will save. If you want to go more with what your girlfriend wants you'd take some of the investment paper profits during boom times and use that to pay off more of the mortgage. If you want a simple method to work out when to do that, take 10% whenever the gain in one year is 20% or higher. There's no particular significance to those two numbers, other than being a reasonable amount to withdraw and a reasonable indicator of rapidly growing markets that may be approaching a peak.

If you are or will be a higher rate tax payer and don't mind clearing the mortgage until you're 55 you might look at a pension mortgage, which is a very efficient way to invest to pay off a mortgage. But you may already have more than ample pension provision from your job.