barrenwuffett
Registered User
- Messages
- 11
What emergency?
Both are teachers so their income is secure.
They will get 9 months' notice of the arrival of the child and can start saving then.
They have surplus income anyway.
May I put it to you like this Gordon. If you had a mortgage of €235k and no cash. Would you borrow €20k @3.1% to have on hand in case of emergencies?
Brendan
So would there be an advantage to paying off straight away or keep saving for a number of years and then if there is still a big cash surplus paying off a larger amount then?
When paying off a large amount do you have an option to reduce the term or reduce the monthly payments and if so which is preferable?
Thanks
Past performance is not indicative of future returns...Investing some money in a well performing portfolio like this might be an option.
I'm in a similar situation. I'm a teacher and my wife is a Special Needs Assistant. If I invested an extra €20,000 a year on paying off my mortgage I'd hopefully be finished paying it in 10 years. However if I invested the same amount in an index fund which can earn an average of 10% annually I could have €361,000 saved after 10 years - about €60,000 more than what I have left on my mortgage. However if I was to sell my investment I presume I'd lose 41% on CGT. Would the €361,000 only really be worth 59% of that money? Or is there a more tax efficient way to draw down the money?
In other words: At these rates is it better to pay off the mortgage or invest in the index?
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