Musings by the FIRE-side

QrizB

The question is whether to do the full £150k now, or split it 50/50

You could even do £30k a month for the next 5 months. It depends on exactly how much risk you want to carry, and only you know that.

Bostonerimus1

https://forums.moneysavingexpert.com/discussion/comment/81989840#Comment_81989840

You've just described why I like paying down principal when things are good and getting rid of it asap. When times are troubled having equity in your home is nice and owning it outright is even better. Those troubles can range from geopolitical instability and a stock bubble you are expecting to burst to losing your job.

michaels

Few would be in equities for a fixed spend due in the next few months, or anything under 5 years.…

NormalNorman

For myself, when your 50's start it was time to start mixing things up for the transition to that [semi] retirement mindset.

Mortgage gone - had one since 1994 so enough is enough.

Zero debt of any kind, loans, cars etc not that I ever did really. Did a 0% solar loan once.

Ceasing any outgoing that does not fit in with quitting full time work.

Max the pension contribution and build up the fk u employer fund.

Funnelling lots of money to daughter for her life chances so it will never factor into IHT, DOA etc £50,000+ so far. These things are likely to be decades away anyway.

Been doing outdoor voluntary work beside similarly minded people that will carry on into quitting the day job.

Picked up a second job that will continue into retirement although atm 100% of the salary from that is pensioned whilst creating another small DB pension. Stacking they call it, lol!

Very choosy about whose agenda I give airtime too and ceased jumping through hoops like more qualifications, out of hours work etc.

More health conscious, cook almost everything from scratch and never buy ready meals.

Simplify everything in life, fewer accounts, finances documented and filling the landfill bin. You think you miss/need stuff. No you don't, clears the mind. Even got rid of a car for max savings as it just seemed to get used to drive other folk around…

Now just worship the wife for a happy life!

chile_paul2

https://forums.moneysavingexpert.com/discussion/comment/81989847#Comment_81989847

£65k of my S&S ISA now sold, so that gives us £100k of the £150k needed for the mortgage sitting in safe cash funds. I'm comfortable leaving the remaining £50k invested for the time being and will keep an eye on the markets over the next month or so.

This may be a daft question, but am I best leaving the £65k sitting in short term money markets in my S&S ISA, or transferring it into my Cash ISA?

I'm thinking transferring into one place will make admin a lot easier when I'm moving money in and out of the offset mortgage to maintain the ISA allowance at each tax year end, but given the proposed rule changes to Cash ISA's I'm thinking it would make sense to have that larger Cash ISA allowance now anyway?

Notepad_Phil

I'm thinking transferring into one place will make admin a lot easier when I'm moving money in and out of the offset mortgage to maintain the ISA allowance at each tax year end, but given the proposed rule changes to Cash ISA's I'm thinking it would make sense to have that larger Cash ISA allowance now anyway?

I think in your shoes I'd also transfer out to a cash ISA - the only potential negative I can see is that you may have to do quite a bit of ISA transferring to keep it at a decent interest rate , but the positives you list would swing it for me.

Smudgeismydog

Isn’t there also the potential for transfers out to Cash ISAs for under 65s to be restricted post April 2027?

mrklaw

https://forums.moneysavingexpert.com/discussion/comment/81996164#Comment_81996164

are transfers limited, or only new contributions?

mrklaw

why do you want to keep such a large amount of ISA savings? At some point you have to settle the mortgage - that either means using some of your ISA, or drawing from your pension - either taxed or using your PCLS which may be better deployed to reduce tax on normal drawdown.

and you have enough to pay off the mortgage with less than 40% of the balance of your ISAs, still leaving 265k ISA liquid and available.

I’m not sure the value is there vs just settling it and being done with it?

Roger175

https://forums.moneysavingexpert.com/discussion/comment/81995426#Comment_81995426

If it's only till the end of Sept, I wouldn't bother transferring to a cash ISA. What's the point? You will be getting a similar rate in your STMM fund anyway. Just remember you will need to sell the STMM fund in sufficient time for the funds to clear before you request the payment out of your ISA.

Personally, I would be selling all the remaining equities required to clear your mortgage - you will be getting roughly 4%/pa in a STMM between now and Sept, why risk it at this late stage.