I have an inheritance. I have spoken to an IFA but was seriously unimpressed. I will speak to another but want to be a bit more clued up first. I know it seems insensitive to talk about what to do with money at the moment but its not the kind of thing I can talk to in real life with so many people struggling.
I am early 50s. We have 10 years & £150,000 left on our mortgage. No repayment charges due. We could pay this off and still have £250,000 left to invest.
My plan is to pay it off and set a direct debit for the mortgage payment into a stocks and shares ISA up to the max. By the time we repaid the capital amount of £150,000 to ourselves (not accounting for growth) we would have saved 2 years in mortgage payments which is roughly £33,000. Plus any growth from the ISA which would accummulate.
Can anyone explain the downsides to paying off early in this way? Does this represent a poor return for the money ?
I have looked at previous threads but a lot of the reasons don't apply ie we don't have a repayment penalty, we would still have a significant sum to invest elsewhere & the money wouldn't be swallowed up in living expenses. Pensions are ok but not amazing.
I appreciate this is a very privileged dilemma to have but it only comes at the expense of losing both parents. I would much rather they were here.