Investment & Investing

You are reading a single comment by @rj and its replies. Click here to read the full conversation.

•

Howard in reply to @rj

We've managed to save some money in the last couple of years, so is it worth over paying the mortgage in a lump sum?

Dunno, but my sense is that in a situation where governments (US / UK particular) are basically printing a fuck load of money and a lot of it is finding its way in to asset prices and stocks / shares, it seems a bit silly and borderline dangerous to take money that you could invest and get 1.8% on it by paying down your mortgage, should there be inflation to match.

•

rj in reply to @Howard

Realistically we might want it in 3-5 years and with my limited understanding we would be exposing ourselves to short term fluctuations in the market. Could you explain what you mean by "should there be inflation to match"?

•

Howard in reply to @rj

Over three years:

Asset prices go up by 20%
Fairly easy to buy in to stocks / shares / indexes by 15%
Food / gas / elec by 10%
Your pay does not increase
You get 5% say by paying down your mortgage

About

Avatar for rj @rj started