Decisions Decisions Decisions HELP !

Perrysburg

Thank you for looking ….

I was fortunate to retire last summer at the age of 52 years.

My retirement included a lump sum and a monthly pension. You would think everything would be plain sailing. Don't get me wrong I am enjoying retirement. However the biggest dilemma is the financial aspect. Please I would welcome any views to utilize my money the best possible way.

I currently have £160,000 lying in a High Street account earning 0.2%, I know you don't have to tell me.

I receive a monthly pension of £1,316 per month, net, and guaranteed my lifetime. I am a basic tax payer, single with no dependants or family. Out of this monthly pension I pay out £1,015 for bills. Thus leaving me £300.00 for food, petrol, socializing and any other necessities which is tight. At this age I still have places to visit and things to do whilst I can.

My biggest outlays are my car loan which is £256.76 a month. I have only 10 more payments left. A total of £2,567.60 outstanding. If I paid in full today I would save myself £24.62.

The next one being my repayment mortgage, which is currently £524.99 a month. Interest rate is 1.24 %. There is 14 years left on it with an outstanding sum currently today at £80,872.49. People say why pay the mortgage off who are you going to leave the house to. Another strand for me it would give me more pension flexibility per month.

Therefore do I pay my mortgage off in full ? Or part ? If so why ?
Do I invest the £80,000 that I could have used to pay the mortgage off ? If so what investments ?
Do I pay the car loan off today.
If I did pay these debts off in full where would I place the remaining £80,000 to ensure it gets the best growth.

I have thought deeply about investing in S&S ISA . But cannot succumb myself to pay some of the hefty fees IFA's are guaranteed regardless if my money goes up or down. Besides the market is very volatile. Do I want to take the risk ? I am aware of inflation plus the fact you should always try and tax free wrap, ISA.

How lucky I am I to be in such a position ! But simply cannot make a decision to ensure that I maximise the best potential.

I have to get this sorted sooooon, Please HELP !

I hope I am on the right thread, please direct me if I am wrong !

miss_undastood

You need to move your savings to a place that pays more than your mortgage interest rate to make it the best thing to do.

There will be some accounts that could make this work

Please please please split your money up. Don’t keep it all in 1 Bank - you’re only guaranteed £85k per institution through the FSCS.

Get yourself a financial advisor who can make your money work better for you. But basically get all of your “cash” paying you more than 1.24% and the interest on the mortgage is less than the interest you are earning on savings so you are “better” off.

Also it may be worth looking to switch your mortgage to interest only as your assets will pay off the loan. But again discuss this with a financial advisor.