How should I invest £700 a month?

Oliver1191

Because of the Actuarial Reduction for early retirement. In itself it offers excellent value to the teacher and lousy value to the taxpayer.

I agree with ValiantSon, this is just an opinion. Most teachers retire or leave the profession with very little built up in the TP. It may be argued as worse value with so many leaving the profession as the average teacher has themselves had around 20 years of education (the vast majority of the costs are paid for by the state). It's common for teachers to do 3-4 hours of unpaid over-time each day, so combined with real pay cuts, worsening conditions, etc. you might argue that it's a bargain for the state.

aj23_2

Oliver1191 wrote: »

Thank you AJ23.



This would give a sense of increasing 'peace of mind'. But with interest rates so low, do I risk loosing a lot more money had it been invested? The 'opportunity cost' is what i'm concerned about. If investments do well, in the long run they could pay off the mortgage...

You'll be paying 0% on no mortgage the sooner you clear it. I think Martin Lewis says somewhere on MSE that if you have debts or mortgage, using savings/spare cash to clear those first.

redux

aj23 wrote: »

You'll be paying 0% on no mortgage the sooner you clear it. I think Martin Lewis says somewhere on MSE that if you have debts or mortgage, using savings/spare cash to clear those first.

For some users of this site, debts or mortgage could include credit card rates of interest, and that advice is certainly best for them.

Some people are keen to clear the mortgage as soon as possible, but for others if the mortgage rate is lower than prospective investment gains they don't feel need to hurry.

aj23_2

redux wrote: »

For some users of this site, debts or mortgage could include credit card rates of interest, and that advice is certainly best for them.

Some people are keen to clear the mortgage as soon as possible, but for others if the mortgage rate is lower than prospective investment gains they don't feel need to hurry.

No but the sooner you pay it off, the more you save long term with regard to interest. If you take ages you're paying the interest for longer.

redux

aj23 wrote: »

No but the sooner you pay it off, the more you save long term with regard to interest. If you take ages you're paying the interest for longer.

This is true, but some people offered chances to borrow money at 1.5 or 2% and invest it with average returns of 5 to 10% would pay it back as slowly as possible.