Is this a good plan for £70k savings?

Hallion

jimjames wrote: »

Again speaking from personal experience I've not paid off the mortgage and have invested in share based funds instead. Rather than being in the situation where I could pay off the mortgage I could now pay it off three times over if I wanted. The security is still there but I'd prefer to try for higher return on funds than clearing the mortgage when debt is so cheap.

Hi Jim,

That sounds appealing. You seem to be making good choices with your fund selection. Could you recommend anything in particular or comment from your experience on the best way diversify the portfolio in terms of UK, international etc funds?

Thanks

planteria

jimjames wrote: »

Again speaking from personal experience I've not paid off the mortgage and have invested in share based funds instead. Rather than being in the situation where I could pay off the mortgage I could now pay it off three times over if I wanted. The security is still there but I'd prefer to try for higher return on funds than clearing the mortgage when debt is so cheap.

that is great. well done. that approach does depend on a certain surety that you are going to keep earning enough to pay the mortgage, and probably invest too, though...i can understand the logic of those who focus on 'getting out of all debt' first.

planteria

kidmugsy wrote: »

In which case the equities idea is less attractive (two years is too short term for equities), the high interest idea less attractive - though not unattractive - and the Premium Bonds idea not too silly.

agreed, the further info changes thoughts. Premium Bonds are a 'fun' idea. beyond those i think just exploiting the best Current Account and Regular Savings accounts is the best strategy.

Thrugelmir

kidmugsy wrote: »

It could be worth your while to contribute a bit to a personal pension of some type while the 40% tax relief is still available. There's talk by some of the political parties of reducing it to 30%.

That's an immediate gain with no risk.