Hi Guys
I am 35 years old, not married, no children, no car, no loans.
Salary 90k/year.
Maximum pension 20%.
Emergency savings OK
Mortgage 200k, variable rate at 4.1%.
Savings of 2k/month
My question is, what would be the most efficient way to make work this extra 2k/month
1) Current account at 0.1% return but -2% inflation.
2) Savings account at 4%, but less fees and taxes (33% or 41% depending on your fund) is actually a ~2% return and inflation is at ~2%, so you neither gain nor lose.
3) Make mortgage overpayments of 4.1% interest but interest rates are likely to fall, so it would be better to wait for them to fall and then make the overpayments so you don't overpay interest.
4) Stocks/ETF/Crypto return 4-8%, but less fees and taxes probably 3-6%
5) Create a Business or buy to let, but for this you would have to save 20% deposit so again, what would be the best way to save that 20% or make that extra 2k/month work efficiently.
What would you do, another option?
I am 35 years old, not married, no children, no car, no loans.
Salary 90k/year.
Maximum pension 20%.
Emergency savings OK
Mortgage 200k, variable rate at 4.1%.
Savings of 2k/month
My question is, what would be the most efficient way to make work this extra 2k/month
1) Current account at 0.1% return but -2% inflation.
2) Savings account at 4%, but less fees and taxes (33% or 41% depending on your fund) is actually a ~2% return and inflation is at ~2%, so you neither gain nor lose.
3) Make mortgage overpayments of 4.1% interest but interest rates are likely to fall, so it would be better to wait for them to fall and then make the overpayments so you don't overpay interest.
4) Stocks/ETF/Crypto return 4-8%, but less fees and taxes probably 3-6%
5) Create a Business or buy to let, but for this you would have to save 20% deposit so again, what would be the best way to save that 20% or make that extra 2k/month work efficiently.
What would you do, another option?