What do you do with 250K (Fund generated from remortgage)

csgohan4

Thrugelmir said:

IamWood said:

enthusiasticsaver said:

Are you able to reject the mortgage or is there a penalty? I am with Thrugelmir and wouldn’t borrow to invest. 

I was of the same mind before. It's also why I paid off my mortgage in the first place (mistake?).

When investing never fall into the trap of using hindsight. If you can now afford to risk your capital. Choose more adventurous investments gpong forward. You might get it right you might not.  Like playing musical chairs, when the music does stop some investors will always lose out. 

using hindsight in investment is akin to gambling mentality. It's like If only i invested in Apple or Amazon 10 years ago I would be rich mentality. 

Tread carefully, investing is not 0% risk. More so with individual shares

Albermarle

AlwaysLearnin said:

To be honest, although it's not normally a popular suggestion on these boards, I think perhaps from your position/worth/income/assets and questions (reading the other thread too), you might actually be someone that would benefit from the services of a good IFA. 

I am surprised that one of the anti IFA faction has not replied yet !
In fact when I glanced at this thread earlier , it crossed my mind that someone with all this money and not sure what to do with it might benefit from some professional advice, even though it would have to be paid for .

Thrugelmir

AlwaysLearnin said:

To be honest, although it's not normally a popular suggestion on these boards, 

An investor shouldn't require reassurance if they've confidence in their own thorough reasoned decision making process. If in there's any doubt don't is my motto. Leveraging with debt not only increases the returns it also magnifies the losses. A double edged sword. 

london21

IamWood said:

Dear All,

The original post was in https://forums.moneysavingexpert.com/discussion/comment/78895178#Comment_78895178

I'm creating a new post because it's more about investment.

I just re-mortgaged my current home, which is owned outright by me. My original plan was to use the funds to purchase a flat in Reading. However, I'm not sure I'll go ahead with the purchase at the moment. In the event that I withdraw my purchase, how should I do with the fund, 250K.

I can put 10K in my wife's SIPP and 10K in her ISA, however, my pension and ISA allowance for 2021-2022 was already exhausted.

The mortgage is a 5-year fixed deal with an interest rate 1.54%.

What can I do with the remaining funds? Or I better reject the mortgage offer altogether.

All comments and suggestions are welcome.

Thank you!

Unless you Really know what you are doing I would suggest not taking the re-mortgage money if you are not buying the property.

Investment can go up or down. 

You can invest in lower risk funds but no guarantee of your returns. 

IamWood

A quick update:

I've formally withdrawn my purchase for the Reading flat and started to look for temporary accommodation in London for 3/4 nights a week at a budget of £500-600 per month.

I'll hold the mortgage offer for a few months to see if I want to do anything with my accommodation close to London.

IamWood

My pension and ISA pots are down 12% so far this year.

Tempted (slightly) to withdraw the mortgage funds to invest. The offer is going to expire in July if I keep doing nothing.

Albermarle

My pension and ISA pots are down 12% so far this year

They must be invested pretty aggressively ?

IamWood

Albermarle said:

My pension and ISA pots are down 12% so far this year

They must be invested pretty aggressively ?

All 100% equities. I'm relaxed with it with the hope that they will come back in the long run.