Invest in a Fidelity Index Fund or overpay on mortgage?

Albermarle

Circle1987 said:

Albermarle said:

Contributing more to your pension is a tax efficient form of investing. Especially as the OP is a higher rate taxpayer , they should at least contribute enough to get the max 40% tax relief , somewhere around £7Kpa depending on bonus size and the method of making contributions , Even more so if your employer increases their contribution if you increase yours. Absolutely 

Maybe set yourself a target of age 55 to have zero mortgage and a large pension pot.

I would pay to have advice from an independent expert. You're at an age when you don't want to make any mistakes. 

See additional comments in Italics above .

When you say "40% tax relief" are you referencing the higher 40% tax bracket "[Higher Rate tax – 40% on income between £45,001 (£43,001 in Scotland) and £150,000]" ?

Yes except your figures seem out of date . In England and Wales and Northern Ireland, the higher rate tax threshold is normally £50,270 
Tax rates 2022/23: tax bands explained - MoneySavingExpert

Depending on how your pension contributions are taken , you may have to claim back the extra tax relief ( maybe you already are?)
If your contributions are taken via a salary sacrifice scheme, or your contributions are taken out before they are taxed, you will get the full tax relief automatically ( as you never pay tax on the contributions in the first place )
If your contributions are taken out after tax , then the pension provider will add 20% tax relief and you have to claim back the additional relief from HMRC . 

Thrugelmir

Do what meets your objectives. Money tied up in a pension is inaccessible. Being mortgage free brings with it a freedom.£200k is a sizable debt to owe in an era of rising interest rates. 

mattywallace121

On a joint income of that value, why only £50 per month? Makes the conversation rather pointless?

Haven't read the full thread but I would probably go for a  S & S LISA.

jimjames

jimexbox said:

Albermarle said:

jimexbox said:

Circle1987 said:

jimexbox said:

Myself I would be maxing out my pension contributions and overpaying on my mortgage. 

In which case, I'm thinking stop the Investment ISA payments altogether, up my pension contribution through my work (also with Fidelity) and start overpaying the mortgage.

Contributing more to your pension is a tax efficient form of investing. Especially as the OP is a higher rate taxpayer , they should at least contribute enough to get the max 40% tax relief , somewhere around £7Kpa depending on bonus size and the method of making contributions , Even more so if your employer increases their contribution if you increase yours. Absolutely 

Maybe set yourself a target of age 55 to have zero mortgage and a large pension pot.

I would pay to have advice from an independent expert. You're at an age when you don't want to make any mistakes. 

See additional comments in Italics above .

I would pay to have advice from an independent expert. This would seem a bit unnecessary in this situation . In any case they seem to have only small investments , a teachers pension and a normal workplace pension , so not sure any independent financial advisor would even be interested.

Taking huge financial decisions on advice from strangers off the Internet, is sometimes a bad decision. 

This forum doesn't give advice. If you hire an IFA you will get advice although I doubt they would advise you to overpay mortgage. On here you will get ideas to investigate and you need to then make your own decisions on them. Following a suggestion without any follow up would be a bad idea, that doesn't mean that all the suggestions provided are bad.

Circle1987

mattywallace121 said:

On a joint income of that value, why only £50 per month? Makes the conversation rather pointless?

Haven't read the full thread but I would probably go for a  S & S LISA.

Currently paying for a wedding and don't really want to make any sizeable investments until I know what I'm doing, or least know that I'm heading in the right direction.

Taking into consideration the above posts (very grateful and appreciate the suggestions), I think I'm going up the pension contribution, and instead of putting money into an Investment ISA, I'll look for a LISA instead.

grumiofoundation

mattywallace121 said:

On a joint income of that value, why only £50 per month? Makes the conversation rather pointless?

Haven't read the full thread but I would probably go for a  S & S LISA.

For a money that would attract 40% tax pension beats LISA in terms of tax relief vs bonus.