Recession Looming - so pay off mortgage instead of investing?

Audaxer

AnotherJoe wrote: »

So you've invested 100% in the UK? Why? ............. oh why oh why?
Go global.

Most UK funds have performed a lot better than that one over the past year. But I'd agree OP would be better going for a global tracker or a multi asset fund.

mark13

Agree with all that is being said, need to move out of current fund, the performance over the periods mentioned has been very poor and the UK is far from stable at the moment.

mark13

Pay off mortgage vs investing, on paper investing would seen the best option, make enough to pay off mortgage and have some left over, realistically, pay a chunk off the mortgage and invest the rest to give some peace of mind. As has been mentioned, once the mortgage is paid you will then have some disposable income to invest and in the mean time learn about invwsting strategies.

newatc

Probably heresy on money saving forum but the pyschological benefit of paying off your mortgage should not be ignored. I had a large bonus paid to me at work some 2 decades ago and paid off my remaining mortgage with it. I dare say it was not the most effective use of money but it was a great day and I've never regretted it.

nick1234

Personally i think the crash will last a lot longer than the past due to govt debt and currencies becoming worthless, i would be paying down any debt including mortgages and investing in precious metals or even a very small portion in bitcoin.

MaxiRobriguez

People who have a large % of the equity in their property (as in, could nearly cover all of it) may want to consider an offset mortgage too.

It means:
1) A low risk "investment" in more volatile times.
2) Implicitly beats savings accounts like Marcus.
3) Allows speculative buy-the-dip opportunities.
4) Allows immediate shift into equities if there's a major market correction without a remortgage.
5) No need to remortgage a fix rate when it comes to and end (if your savings cover the debt)

I'm finding it pretty useful at the moment, although the hard part has been finding worthwhile investments which is enough to convince me to move an allocation from the offset into the ISA.

N.b: Doesn't replace pension salary sacrifice which is still really important to get the tax bonus.

seacaitch

nick1234 wrote: »

Personally i think the crash will last a lot longer than the past due to govt debt and currencies becoming worthless, i would be paying down any debt including mortgages and investing in precious metals or even a very small portion in bitcoin.

Maybe print off the last 10 years' of Zero Hedge for something to read and keep the spirits up through the Coming Long Winter.

Plus, if - When! - the utilities all fail, can always burn it to stay warm.