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Any Advice On Investing A Modest Lump Sum?

This entry was posted on Saturday, December 5th, 2009 at 9:15 am and is filed under Repayment Mortgage. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

6 Responses to “Any Advice On Investing A Modest Lump Sum?”

  1. Never use capital to pay off debt if you can get a better ROI with it than paying off your debt would save you. But, without knowing what your debt is costing you, I would say six of one half a dozen of the other. Personally, I would use the interest off of the capital to do both, extra mortgage payments and save a little if possible. If you’re looking for a place to park it, I like equity-income funds like Fidelity(FEQIX).

  2. Hi there. You really need to speak to an IFA. Maybe transfer your mortgage to one that allows early repayments etc. Good deals and cash back around at the moment. So money you loose in penalty charges for transferring, might still leave you with your modest amount to invest. Get the best deal mortgage then decide what to do. regards.

  3. I would suggest speak with an independant financial advisor.
    They shouldn’t charge for the service as they will get there uncome from whereever you invest.

  4. More or less Cosmic on December 5th, 2009 at 10:28 pm

    Depending on the amount you have to invest, then I would go for an ISA using 2006 allowance before 5th April. Anything tax free these days is a bonus!

  5. PAY OFF YOUR DEBT !!! ALWAYS!!!!
    There are many good sounding reasons not to, but I have found in life, that things work better, go smoother, good things tend to happen, when YOU HAVE NO DEBT.
    Get out of debt, stay out of debt, and then get a good investment plan going.

  6. Zerg Proletariat on December 6th, 2009 at 3:04 am

    Like the other chap said, it depends on the current rate of interest you’re paying on the mortgage. If you can afford to meet the regular repayments, then you might be better off investing the lump sum.
    And as you’ve said, any contribution to your pension savings is effectively tax free. So if you’ve already paid tax on the lump sum, the government will have to pay YOU money. This is always nice!
    (Like, if you contribute £100, it’ll be worth about £120 straight off…)
    You could even invest (in mutual funds, collective investment schemes, etc.) WITHIN a pension scheme – tax free – if you’ve got access to a SIPP.
    So many options! Good luck.

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