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How would you invest £100 a month

(10 Posts)
wearymum73 Fri 12-Feb-16 16:07:30

I have a spare £100 a month I can invest until I retire in 25 years, and I have 3 options, which option in your opinion would be the best?
To pay £100 extra of the montage, this would save me 3 years on the Mortgage with 18 years left, so I could save the mortgage money each month into a ISA, approx £600.
Pay £100 a month into a ISA
Or pay a extra £100 a month into my pension?

Cindy34 Fri 12-Feb-16 16:18:25

Personally I would pay it off the mortgage as it is such a nice feeling to be mortgage free. It may not be best investment though, may be better in pension due to cumulative interest.

Presumably all high interest debts are repaid, such as credit cards, car loans etc. If those do exist then those would be first thing to pay off.

wearymum73 Fri 12-Feb-16 17:52:43

I have no other debt, never believed in credit cards or loans...though I have never managed to start saving in a pension until last year, and it's really starting to scare me, as I will only have £6k a year when I retire.
Is paying into a pension a good idea, as if I only live till 75 I would only get the extra money for 10 years, rather than having a savings I could pass onto my kids?

Sunseed Fri 12-Feb-16 20:06:11

Pension rules changed last year. You don't have to buy an annuity with your fund. You can keep it as a lump sum and it can pass down to your kids. You get tax relief so would be worth more than putting same in an ISA. Downside is that you can't get it out again till age 55.

squarepea23 Thu 25-Feb-16 15:22:36

With £100/month you could find yourself with a nice return in a peer to peer lending website. It's a new industry and I can't say I'd necessarily recommend it (there is some risk), but from what I hear it's growing very rapidly.

friggssake Mon 07-Mar-16 22:17:50

Bump ... Interested...

TuttiFrutti Tue 15-Mar-16 21:49:29

I would pay off the mortgage every time. You will nearly always be paying more in interest on a mortgage than you can make in an ISA.

Diddlydokey Tue 15-Mar-16 21:57:23

Peer to peer l ending isn't for someone new to investing.

Do you get any further benefits from your employer if you contribute more? Do they match it?

Pension is a tax free savings environment and exempt from your estate so has a benefit with IHT planning too.

friggssake Sat 26-Mar-16 18:39:39

If you are mortgage free & already paying into £100 into a pension... Would people invest the £100 into a cash ISA or highest interest rate account? (Also 25 years from retiring... )

NameChanger22 Sat 26-Mar-16 18:43:00

Pay off the mortgage. This would always be the best option.

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