Investing in stock market vs paying off mortgage

purch

Have 50K lump sum, best to invest or pay off mortgage, or do a bit of both? .... where do I start? Am complete newbie ...

I am quite shocked by the totally irresponsible "advice" being bandied about on this thread. The OP's situation, knowledge and most of all the current Economic Reality seems to have no bearing whatsoever to what is being suggested.

If the OP follows this "advice" probably in 12-24 months time they'll have the same debt secured against an asset that has reduced in value, and a lump sum worth less than it is now.........no doubt when they come back and ask 'what should I do now ?' they'll get the usual drivel....'investing is a long term blah blah blah'

Wonderful :T ............is it any wonder the Financial "Industry" has such a bad reputation.

dunstonh

I am quite shocked by the totally irresponsible "advice" being bandied about on this thread.

I must be reading a different thread. I cant see any advice being given on this thread. Certainly none that results in what you suggest.

is it any wonder the Financial "Industry" has such a bad reputation.

...because of a discussion thread on MSE?

sabretoothtigger

Jonbvn wrote: »

You couldn't possibly be telling porkies and really you're just about to do your mock O or A levels?;)

Pay off your debts first doesnt sound like a 15 year old to me. I certainly didnt think at 15 to divide my rate of debt interest by my tax rate to work out a comparable rate of return

purch

I cant see any advice being given on this thread

You must be going blind duns

I can count about 8 different people offering advice on this thread (not counting your input of course :cool: )

sabretoothtigger

Im offering opinions, my advice is always make your own decisions because no one but you can know how important the money is or when it'll be needed next.
One mans junk bond is another mans fortune or something like that

Even you offered an opinion on future returns in your post above.
I agree on the long term comment, its not enough to just say that when timing is essential and too much time could be the death of an investment as we saw with the banks, citi:

StevieJ

FWIIW, my twopenny worth.

Cash Isa 3600 2008/9 fixed
Cash Isa 3600 2009/10 fixed
Stocks Isa 3600 2008/9
Stocks Isa 3600 2009/10

500 * 24 = 12000 Mort overpay.

13,600 High bank rate account

Review April 2010.

Sorry Purch, not advice but what I would do.

StevieJ

purch wrote: »

You must be going blind duns

I can count about 8 different people offering advice on this thread (not counting your input of course :cool: )

Hey Purch, what about your advice to pay his mortgage off?

mark13

Pay off debt..... the stock market is a gamble. look at all the big banks they are the "experts" and look at the mess they are in.

purch

Hey Purch, what about your advice to pay his mortgage off?

I counted that !!! .... and yes it was advice not opinion

dunstonh

look at all the big banks they are the "experts" and look at the mess they are in.

Banks are anything but experts when it comes to personal investments. They never have been and almost certainly never will be.