Overpay on Mortgage or Pension?

Hobo_2

DavidLaGuardia wrote:

Sorry, I don't mean to be rude, but what a load of old tosh! I need not even go into defending the whys and wherefores of share investment. A Pension is just the WRAPPER. Within a few limitations what you invest it in is up to YOU, be that shares, bonds, gilts, commercial property (+residential from next year) or plain old cash JUST LIKE MtANY OTHER INVESTMENTS!

No offence taken david, but i was talking in the context of a company pension, good (in theory) because of employer contribution life cover etc,also i`am aware of the possible long term benefit of shares, pound cost avg etc, my earlier post suggested a mix in different opportunities Pension=stockmarket
Cash = Isa
Property= overpay mtg

Hobo_2

It depends i think on your level of savings , for me it`s "a shot to nothing" having just over 50% of mtg offset it gives another degree of choice as it`s the same wether money in isa pot or savings pot/curr acc offseting thus saving mtg int payed.
Indeed no int earned/compounded on ISA while offset, but will allow (when mtg payed off) too still have savings & in ISA wrapper for tax free income in the future OR what the heck if needs be use ISA lump sum to pay mtg off sooner when they reach breakeven.

IF.com now have a good site calculator to play with, interesting in that with some senario for me i only end up paying in total £82K on £77K borrowed over 15+yrs N.B. assumes int rate vari remains constant for term

DavidLaGuardia

Hobo wrote:

No offence taken david, but i was talking in the context of a company pension, good (in theory) because of employer contribution life cover etc,also i`am aware of the possible long term benefit of shares, pound cost avg etc, my earlier post suggested a mix in different opportunities Pension=stockmarket
Cash = Isa
Property= overpay mtg

Hobo I agree 100% with a mix of assets, but again, even a company pension is not necessarily invested in shares (just as an ISA isnot necessarily cash only) An example recently of a big company with no equity investment was Boots -everything was in cash or fixed interest securities. You may be awareof this already, but what I want to drive home to anyone who might not know (because of a wide prejudice against pensions because of some funds) is that pension plans are not any type of fund in themselves, but merely a useful tax efficient facility which invites a plethora of investment choice.

dunstonh

I do have to point out that having read the posts on this thread, there is so much misinformation going on and assumptions without knowing the facts.

It appears many on here are disregarding tax status, childrens tax credit potential, wife's retirement provision, interest rate on the mortgage, the fact that added years are available now but are unlikely to be available in the future, assumptions on attitude to investment risk (with misinformation on what pensions invest in), the pension rules changing after April 06 which may or may not impact (its mostly high earners that it does) and when and how he want's to retire.

If you were to follow some of the posts and treat them as advice, you would be potentially costing yourself a lot of money.