House or pension?

[wonderwish]

I am a business owner and have some dividends due this year.

I currently don't have a pension running, as I have been reinvesting into my business. I have a few years from civil service, but not much.

This year I'll be able to take £50k from my business. I am about to purchase a house (with separate finances).

Would you spend the £50k on paying more off the mortgage, a separate investment or put some into a pension?

We had a similar dividend windfall last year.

I put £20k into pension
£10k on a once in a lifetime holiday
£20k back into the business to fund a change in direction

If I wasn't doing that last bit, I probably would just invest it. Even with everything that's going on in the world, our investments are doing better than the mortgage rate but that would depend on your rates / balance etc

So I'd split it

Sorry for the slow reply!

Thank you all for some great advice. It won't be something we can do right away anyway, so will be looking at things a bit closer after April. It may be that we split the money or decide to do some house refurbishments this year - which in a way is our own investment.

Thanks again for your time and knowledge - much appreciated

You would be best to look at it before the end of the tax year 5 April.