Pay your mortgage off early or invest?

[Pawnless Endgame]

Rule one in life, pay off your mortgage. Being mortgage free in your fifties opens up much more to life. Unless you are still trying to climb higher on the property ladder.

Problem is health can seriously get in the way at 50s.

I agree with you both. I'm 44 now with 8.5 years left on my mortgage. I'm currently in a 2.79% fix due to end in mid-2026 then there will be 5 years left on whatever the new interest rate is. I'm over-paying now at a rate, that if I keep it up, I'll be able to shorten my original 25-year plan to 21.5 years. This means that I'll be fully paid off in early 2028, when I'm 49.

 

[413x]

I agree with you both. I'm 44 now with 8.5 years left on my mortgage. I'm currently in a 2.79% fix due to end in mid-2026 then there will be 5 years left on whatever the new interest rate is. I'm over-paying now at a rate, that if I keep it up, I'll be able to shorten my original 25-year plan to 21.5 years. This means that I'll be fully paid off in early 2028, when I'm 49.

Always a balance between protecting future and enjoying now. But feel fortunate to at least be able to make that decision I guess.

 

[fez]

Or just spend everything and hope state picks up the tab. When means tested pension comes in. Maybe investing will be the worst investment! That's kind. Of my. Nightmare. That I spend all my time being responsible. But not rich. Then come "retirement" someone who's spent it all away ends up with same!

This is already how these things are going. The people who are least financially responsible and spend every penny they get will be the ones who bleed the system dry and both ends when they retire and have no money.

If you are wealthy you will be fine. If you are a middle earner and sensible you will get ******.

 

[413x]

This is already how these things are going. The people who are least financially responsible and spend every penny they get will be the ones who bleed the system dry and both ends when they retire and have no money.

If you are wealthy you will be fine. If you are a middle earner and sensible you will get ******.

It is I agree. Might as well put it all on red. If you win. Yay you're wealthy. If you lose? State well pick up the tab.

Even the middle is getting harder to get to. And with inflation and all recent costs its getting difficult to get past it.

 

[Mercenary Keyboard Warrior]

I think yes and no to that

For sure if you spend everything your going to get "looked after" by the state
But that "looked after" is basically guaranteed to be a pretty poor existence.

I dont think many look forward to retirement, they look forwards to not working.
But imagine being poor, not enough to eat and warm yourself, let along do anything else, and that being what you face basically every day until you die.

If you can afford to get your own house by the time you retire and save a reasonable amount your retirement shouldnt be too bad.
If you can't afford a house you should probably spend everything now.

Uuuurgh

 

[413x]

I think yes and no to that

For sure if you spend everything your going to get "looked after" by the state
But that "looked after" is basically guaranteed to be a pretty poor existence.

I dont think many look forward to retirement, they look forwards to not working.
But imagine being poor, not enough to eat and warm yourself, let along do anything else, and that being what you face basically every day until you die.

If you can afford to get your own house by the time you retire and save a reasonable amount your retirement shouldnt be too bad.
If you can't afford a house you should probably spend everything now.

Uuuurgh

That's the line. If you can pay off your mortgage yes. You probably can have at least (as things stand) a retirement out of poverty. Providing health etc holds up.

If you can't escape the rent trap? RIP


As less and less people escape the rent trap wealth divide will grow. Burden on state will grow. House of cards economy is built on will implode and/or have to change.

 

[malachi]

If you are lucky enough to retire and not work till the day you die.

 

[fez]

Unlike France, we just keep sucking up the changes to pension age. By the time I retire (35 now) I would be astonished if the retirement age isn't 70+.

Something will have to give because we have an ageing population, more and more people require help from the state throughout their lives, taking care of people is getting more expensive and more people are going to be either still paying mortgages or renting when they retire and you need a damn good pension to be able to pay either of those.

Thats a problem for 20 years from now though. The current government won't be in charge then and the people who have screwed the country won't be affected either way.

Just got to play the game the best you can.

 

[Bassmansam]

Been thinking about this and i should get about 250k inheritance from family at some point in the future. My plan is to buy a place in the next 5-10 years for 325k with 25k deposit. So in real terms i’m only paying 75k, that doesn’t seem so bad.

 

[CaptainRAVE]

Invest in property, that’s what I’ve always done. It goes up far more than most investment returns. Plus the value of our house now massively outweighs a mortgage that we will eventually pay off anyway.

 

[413x]

Unlike France, we just keep sucking up the changes to pension age. By the time I retire (35 now) I would be astonished if the retirement age isn't 70+.

Something will have to give because we have an ageing population, more and more people require help from the state throughout their lives, taking care of people is getting more expensive and more people are going to be either still paying mortgages or renting when they retire and you need a damn good pension to be able to pay either of those.

Thats a problem for 20 years from now though. The current government won't be in charge then and the people who have screwed the country won't be affected either way.

Just got to play the game the best you can.

It will have to happen for France too.
There is no more cash.
Wheels are coming off capitalism. Cost of living is just too high. Standard of living has to go down. It will mean people dying younger, or having poorer quality of life than parents. But can't keep taxing more and more to plug the ever more expensive welfare bill.

 

[nightwish]

Invest in property, that’s what I’ve always done. It goes up far more than most investment returns. Plus the value of our house now massively outweighs a mortgage that we will eventually pay off anyway.

Stock market does better long-term I believe, though is more volatile.

Property vs the stock market - The Gosling Factor

For most people, the stock market is a better bet than buy-to-let.

thegoslingfactor.com

 

[Uther]

It will have to happen for France too.
There is no more cash.
Wheels are coming off capitalism. Cost of living is just too high. Standard of living has to go down. It will mean people dying younger, or having poorer quality of life than parents. But can't keep taxing more and more to plug the ever more expensive welfare bill.

The French are rioting because Macron is trying to put the pension age UP to 64, from 62. They'll probably get the guillotine out again if he tries for 67-68!

 

[413x]

The French are rioting because Macron is trying to put the pension age UP to 64, from 62. They'll probably get the guillotine out again if he tries for 67-68!

Are there even proposals or how it will be funded if don't put it up?

Those lot over there get so much holiday too! Sounds amazing compared to us here!

 

[fez]

It will have to happen for France too.
There is no more cash.
Wheels are coming off capitalism. Cost of living is just too high. Standard of living has to go down. It will mean people dying younger, or having poorer quality of life than parents. But can't keep taxing more and more to plug the ever more expensive welfare bill.

Well, the other option is for companies/wealthy individuals to pay their fair share of tax and for people to take better care of their health. The world is wealthier than ever, its just getting funnelled to a tiny proportion of the people. There is no reason why a future where people have lots of leisure time and plenty of money isn't possible beside the fact that it would mean that some people would have to only be mega wealthy rather than obscenely wealthy. They are going to have to do something as automation and AI starts replacing more and more jobs which just concentrates wealth even more.

 

[Mysterae_]

Well, the other option is for companies/wealthy individuals to pay their fair share of tax and for people to take better care of their health. The world is wealthier than ever, its just getting funnelled to a tiny proportion of the people. There is no reason why a future where people have lots of leisure time and plenty of money isn't possible beside the fact that it would mean that some people would have to only be mega wealthy rather than obscenely wealthy. They are going to have to do something as automation and AI starts replacing more and more jobs which just concentrates wealth even more.

Getting a bit off topic now but I read a story (can't find it now) where they said the future would consist of people who wanted to work and did because they liked it, and those that didn't work because they couldn't or were born lazy. A citizen credit scheme (akin to money but non-inflationary) would be given to each person to do with what they wished. Those that benefitted society got more credits, those that didn't just got by on what they were given.

 

[413x]

Well, the other option is for companies/wealthy individuals to pay their fair share of tax and for people to take better care of their health. The world is wealthier than ever, its just getting funnelled to a tiny proportion of the people. There is no reason why a future where people have lots of leisure time and plenty of money isn't possible beside the fact that it would mean that some people would have to only be mega wealthy rather than obscenely wealthy. They are going to have to do something as automation and AI starts replacing more and more jobs which just concentrates wealth even more.

I guess while individuals and corps can hide in tax havens, and we don't properly address this (world wide) this inequality will continue.

I don't hear much faith in that unfortunately. We are, after all, selfish by design.

I don't want to get into brexit, but for all its flaws I do think this is where countries working together can have an impact.

Big mega corps, you only get to operate here if you pay more. Etc etc.


Still, you see the effects no hitting the big boys too. Amazon, Google etc laying off jobs.


Is there enough wealth around to move tax around? I'm not sure. When it gets to super big picture stuff like that, I'm too layman to know. But I get a feel that we are entering a trough phase.

Maybe we aren't immune to nature, even with all our tech and a decline is inevitable? At this point my mind is blown. But the growing wealth divide doesn't seem to be going anywhere at the moment.

 

[413x]

Getting a bit off topic now but I read a story (can't find it now) where they said the future would consist of people who wanted to work and did because they liked it, and those that didn't work because they couldn't or were born lazy. A citizen credit scheme (akin to money but non-inflationary) would be given to each person to do with what they wished. Those that benefitted society got more credits, those that didn't just got by on what they were given.

I was. Actually talking about this very thing today. (came from talking about chatgpt taking jobs) if it really does end with say 50pc of jobs going. Permanently. What will all the doleys (lol) do? Sounds like a eutopia in some ways, in others, solent green!

Fascinating and scary in equal measure!

 

[413x]

Well, the other option is for companies/wealthy individuals to pay their fair share of tax and for people to take better care of their health. The world is wealthier than ever, its just getting funnelled to a tiny proportion of the people. There is no reason why a future where people have lots of leisure time and plenty of money isn't possible beside the fact that it would mean that some people would have to only be mega wealthy rather than obscenely wealthy. They are going to have to do something as automation and AI starts replacing more and more jobs which just concentrates wealth even more.

AI, yeah. Nothing scares me more.
Could create an amazing new world. Or it could be controlled by a power maniac and we all live in a true imprisoned existence, surplus to requirements.

I like to think it will be amazing. But human nature, power...



In which case, who cares about paying off the mortgage? Live for today!

 

[Mark M]

I was. Actually talking about this very thing today. (came from talking about chatgpt taking jobs) if it really does end with say 50pc of jobs going. Permanently. What will all the doleys (lol) do? Sounds like a eutopia in some ways, in others, solent green!

Fascinating and scary in equal measure!

Would need to look at a 24 hour purge for sure! Are there any security company/roller shutter companies that are worth investing my mortgae money in?