Bonus time - How best to decide what to do with it

[Karoeline]

Hi All,
I have a bonus coming up later this month. I'm trying to decide if I should put the budget into (a) my pension, as an AVL (b) my mortgage or (c) invest it.

I know this is a big question but can someone offer advice on what to consider? I'm looking to build a little calculator that would allow me to see which one yields the best profit because there's no other factor driving this really (my pension is in an OK state, my mortgage is on track and I have some idea of how to invest sensibly)

But I have no idea how to think about this
I'm in the higher tax bracket, I have a variable interest mortgage (only since last month and for now at least) and I'm 40

 

[Gordon Gekko]

Rule out the investment option.

Given the mortgage is okay, I’d AVC it.

Investing personally whilst carrying a mortgage makes very little sense.

 

[MrEarl]

Agree with Gordon,

Assuming you are:

- in relatively secure employment,

- not under pressure with regards to your monthly outgoings

- not already maxing out your annual AVC allowance, for tax purposes (ie that you can get maximum tax relief on the contribution).