Lump sum planning

fred246

Within the next five years I will receive a lump sum and an inheritance which I won't know what to do with. Would it be possible to remortgage the house at under 2% and then invest the cash in S&S ISAs. I could then pay the mortgage off with the lump sum. I could just imagine a bank manager saying 'borrow to invest' no way but it seems to make sense. Anyone done this?

AnotherJoe

Maybe I'm missing something but why wouldn't you just invest the cash directly into ISAs?

Without numbers impossible to say much more. How old are you, what pension provision do you have?

fred246

I could possibly end up with £300k in cash. People on savings & investment board always asking what to do with this sort of money. Just struck me that if my wife and I invested £20k each year for 5 years from re-mortgage it would give me something to use money on. I am basically regretting paying off mortgage instead of investing and wondering if I can reverse the process.

AnotherJoe

Ok my apologies I didn't understand your question properly but that's my bad.amd I see what you are getting at now. Yes, this is seen in the MFW forum here people obsess about paying their mortgage off but miss the bigger picture.

So, it comes down to your age, your and wife's earnings, how much you currently put in pension, any other pensions you may have. You could probably do with a couple of hours with an IFA. Investing isn't really about the money you have to invest it's about your goals and your appetite for risk and also your ability to tolerate it such as with forthcoming pensions.