What to do with £10,000

averi101

Hi
Iwill need your advise.I have £10000 which I saved over last few years.I am 52 yrs now and still has to pay £80000 on mortgage which will finish in next 7 years.Can you please suggest as what to do with this money.Shall I pay towards mortgage or invest some whare else.Your advise will be highly appreciated.

Averi

scotsbob

If the interest on the mortgage is higher than the interest you would get from savings then pay off the mortgage.

Alternatively buy a second hand MX5 and enjoy yourself touring Europe for a month.

laurel7172

How are you intending to repay the £80,000?

zygurat789

If that's all you've got saved at 52 then you need to have it all available fairly quickly, for a rainy day. Interest rates are appallingly low giving you £300pa on your £10K so, I'd get a few premium bonds, if the big ones come up you can bung me a bit.

averi101

scotsbob wrote: »

If the interest on the mortgage is higher than the interest you would get from savings then pay off the mortgage.

Alternatively buy a second hand MX5 and enjoy yourself touring Europe for a month.[/QUOTE

Thanks.
Interest on mortgage is 2.5%.

averi101

laurel7172 wrote: »

How are you intending to repay the £80,000?

I am in a full time salaried job and pay around £2200/pm towards mortgage.

averi101

zygurat789 wrote: »

If that's all you've got saved at 52 then you need to have it all available fairly quickly, for a rainy day. Interest rates are appallingly low giving you £300pa on your £10K so, I'd get a few premium bonds, if the big ones come up you can bung me a bit.

Yeah.It is a small saving so far.

Savvy_Sue

I'd start by reading Martin's articles on Saving which are all around here.

If you haven't got an ISA (to give you tax free savings) then that's a bit of a no-brainer, although you do need to make sure you get one which pays a decent amount of interest.

Pension, do you have a pension plan in place and are you paying enough into it?

Other questions are whether you have life insurance which would pay off the mortgage if you died (which may not matter), whether you're married or single, live alone or with others, have dependents.

Then you also need to identify what you're saving FOR. Dream holiday, or the roof on the house will need replacing next year? A comfortable old age, or going out with a bang while still young?

And so on ...

averi101

[

If you haven't got an ISA (to give you tax free savings) then that's a bit of a no-brainer, although you do need to make sure you get one which pays a decent amount of interest.

Pension, do you have a pension plan in place and are you paying enough into it?

Other questions are whether you have life insurance which would pay off the mortgage if you died (which may not matter), whether you're married or single, live alone or with others, have dependents.

Then you also need to identify what you're saving FOR. Dream holiday, or the roof on the house will need replacing next year? A comfortable old age, or going out with a bang while still young?

And so on ...[/QUOTE]

Thanks a lot!!!

It looks I haven't done much with my life...After your answer I pulled out my mortgage papers and one good thing is mortgage will finish in 4 years as I am overpaying.I have a pension which will give a oneoff of £100,000 at 60 yrs and annually around £24000. I have insured my life for the amount of mortgage. Whole objective now is to save for old age.I better keep £10000 for sudden emergency as previously advised.Any comment?

nlj1520

I think keeping that amount reasonably accesible for rainy day money is the best idea. You seem to have everything else (mortgage and pension) covered.

zygurat789

It looks I haven't done much with my life...After your answer I pulled out my mortgage papers and one good thing is mortgage will finish in 4 years as I am overpaying.I have a pension which will give a oneoff of £100,000 at 60 yrs and annually around £24000. I have insured my life for the amount of mortgage. Whole objective now is to save for old age.I better keep £10000 for sudden emergency as previously advised.Any comment?[/QUOTE]

One of the best things to come out of this is that you have now started to take stock of your situation and plan.
I would suggest that you and spouse, if applicable open cash ISAs and put as much of your instantly available cash into them. The interest is tax free whereas at the moment you are probably paying 40% tax so that's increased you income by 2/3rds.
Is your mortgage insurance mortgage protection or for the full amount of the original mortgage and is there any savings element?
Look atv other relevant boards on MSE particularly Savings, Pensions particularly "the number".
Trust me you can have hours of fun making yourself more financially secure