Invest cash or pay off mortgage

jonnyb

No, she is public sector so no SAYE. My plan is just to transfer the shares to her trading account, then effectively bed and isa them into her isa - will have to pay the fees obviously but it will be worth it.

And she will sell up to her capital gains allowance, and withdraw the money, into out joint account, at which point it's free for me to use legally within my share account !

I will probably do the same with my own CGT allowance, but use the proceeds to diversify into other shares so it's not all tied up in the company I work for - nice safe dividend earning shares.

Then come next financial year, move things into my ISA again.

talexuser

I paid off my last mortgage in 7 years and bought the next house for cash. Peps and ISAs, and savings went maximum every year after getting rid of the mortgage payments and has built up to a goodly sum over the years with re-investment to supplement pension.

At your low rate I know it makes sense to try and get a greater return from stock funds etc, but the feeling of security of owning the bricks and mortar is good, and the freedom of doing what you want with the extra money is worthwhile. Just keep a worthwhile rainy day fund to keep your lifestyle in event of emergencies.

gadgetmind

jonnyb wrote: »

No, she is public sector so no SAYE. My plan is just to transfer the shares to her trading account, then effectively bed and isa them into her isa - will have to pay the fees obviously but it will be worth it.

Here is what I do every year.
1) Send Hargreaves Lansdown share certificate and letter of instructions.
2) As per letter, they transfer one ISA allowance into my ISA on April 6th and the rest goes into my trading account. (In reality it all goes into the latter and then 1xISA beams into ISA later.)
3) I then sell 1x CGT allowance in my name and also sell shares in my ISA.
4) I send HL another letter telling them to move some shares to my wife's trading account.
5) She then uses the "Bed and ISA" to sell shares and fund ISA. HL don't charge a fee for this.
6) The spare cash from my CGT allowance goes into my wife's trading account and she buys unwrapped funds in there. She also trickles £240pcm into her SIPP.

Note that if you exercise SAYE in mid Feb then you can do two ISA transfers within the 90 days.

newjchosen1

You want to do a little of both. I think you should pay off your mortgage and make a smart investment afterwards. There is nothing better than having a house paid off.

-Smart investor