Should I pay £20k off the mortgage or invest it in my pension?
I have about £50,000 to invest but do not know what to do for the best. I have a good sized pension which I pay into every month (I am 45); 2 new ISAs and a rather large but affordable mortgage with 18 years to run. I have no option to move to an offset mortgage at the moment. I also have £15k in savings in the bank.
I was thinking of doing one of the following things but have no idea of the pros and cons of these routes:
- pay money off the mortgage
- pay more money into my pension
- buy some shares
- pay more into my ISA
- buy a buy-to-let using the equity from my house to fund a new flat
- buy a plan for a new house not yet started and hope to make money on it when it's built and/or rent it out
Can anyone offer any advice? My financial advisor just tells me to do what I think is best and is now hassling me to put £10k immediately into my pension - my £20k would give me £5k back in tax relief and provide £25k into my pension...Report