R
rep21
Guest
I have 75k to invest i have a mortgage with 74000 left to pay
which will end in 8 years am i better off paying it off now or investing the 75k
which will end in 8 years am i better off paying it off now or investing the 75k
You have the option of both - If you would like to pm me I can give you the number of an investment broker that we have found very good.Clearing the mortgage now is likely to save you about €15K in interest charges judging by the results of entering €74K, 8 years and an assumed interest rate of 5% into Karl Jeacle's mortgage calculator. This may not be 100% accurate but it should give you some idea of the potential savings/guaranteed "return" available by going that route.
If it were me, I would transfer the mortgage to an interest only National Irish Bank Mortgage. Your mortgage is very low and (assuming your house is valued at more than 150k) you will get a rate of 4% on your mortgage with NIB. However, you will also be receiving TRS on your interest payments which will bring the total interest paid to 3.2%. As the long term average of the stockmarket is somewhere around 11%, you should win hands down.
With this approach, your monthly mortgage payments will be reduced to a bit under €200. I would then put the entire 75k into a low cost fund (such as Quinn Life's) and also put the difference between your current monthly payments and the new monthly payment of €200 into the fund on a monthly basis.
Of course, using this method, your mortgage balance would remain at 74k. However, you could continue this approach whilst the value of your investment goes up (theoretically). Then, at any point, you could withdraw 74k from your fund to pay of the mortgage and should have a tidy amount left to continue investing or spend as you please.
With this approach, your monthly mortgage payments will be reduced to a bit under €200. I would then put the entire 75k into a low cost fund (such as Quinn Life's) and also put the difference between your current monthly payments and the new monthly payment of €200 into the fund on a monthly basis.
Of course, using this method, your mortgage balance would remain at 74k. However, you could continue this approach whilst the value of your investment goes up (theoretically). Then, at any point, you could withdraw 74k from your fund to pay of the mortgage and should have a tidy amount left to continue investing or spend as you please.
R
rep21
Guest
Thanks Ronaldo sounds good