M
malcolm72p
Guest
I'm new here so I hope this is the right place.
I'm 50 and planning to retire in 5 years.
I've been saving AVC's in my company scheme for a while and I am allowed to take them out as a cash lump sum when I retire. Currently, they are gaining 10% interest per year.
My question is this.
If I raised say £30,000 on my house and paid interest only (6% ish) and then paid the money into my AVC fund, I'd get 40% tax back plus the interest generated by the scheme. So, after 5 years, I should have way more in my hand than I owe back to the mortgage company.
Am I being stupid or is this a good saving plan?
Thanks
M
I'm 50 and planning to retire in 5 years.
I've been saving AVC's in my company scheme for a while and I am allowed to take them out as a cash lump sum when I retire. Currently, they are gaining 10% interest per year.
My question is this.
If I raised say £30,000 on my house and paid interest only (6% ish) and then paid the money into my AVC fund, I'd get 40% tax back plus the interest generated by the scheme. So, after 5 years, I should have way more in my hand than I owe back to the mortgage company.
Am I being stupid or is this a good saving plan?
Thanks
M