Paying down mortg versus other invest options

J

jim

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Hi,

Is paying down the mortgage really the only viable option for using disposable income/accumulated savings?

I have a mortgage and am comfortably paying it each month. I have accumulated €10k in savings recently and have/will have approx. €2.5k in leftover disposable income each month going forward.

Whilst I know that paying down the mortgage is advisable given the interest rate, and I will do this to some extent, Im not mad about the idea of my savings been tied up after I pay down mortgage and so am wondering is there any investment alternatives out there.

Im not interested in savings a/c's so I suppose really what I am driving towards is some sore of investment in shares or funds. Would appreciate any advice.
 
jim said:
I suppose really what I am driving towards is some sore of investment in shares or funds. Would appreciate any advice.
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Nobody can tell you what to do. This depends on your time window, your attitude to risk, your potential need for access to your funds in the future, and your interest in investing/economy/business.

If you want to be an active investor, read as much as you can. Avoid anything that sounds too good and avoid anything that is essentially a gamble.

The worlds most famous investor, Warren Buffet, had some advice to give over the weekend (google his letter to his shareholders) where he noted that for the average investor the best invetment was an index fund. Advisors and professional investors that claim to be able to get you better returns than the market average, almost never do after their fees have been paid.
 
There is a fatal flaw in that argument though; what about the behavioural side of investing which makes the investor with the index fund cash out in times of market stress?
 
Thanks sunnydonkey. At the risk of sounding a bit lazy. How can i go about investing in an indexed fund? Would i not need to go through an advisor?
 
Jim, you've enough posts on here to know you should give all the figures before we can see what is or is not advisable for you to do. You didn't even mention if you have a low tracker in your post ! It's a no brainer if you're paying 6% to a bank in interest.
 
Hi Bronte,

I felt that the info I provided in my OP was sufficient to have my question answered to my satisfaction - and it turns out it was by Cremeegg.

Out of curiosity what other figures would you have needed from me in order to advise in relation to my specific question?

I am aware that having a Tracker equates to a low interest rate and therefore might not make sense to pay off on a Tracker and the reverse is true if paying a lot of interest!:p

Thanks anyway,
Jim
 
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