40K to invest

foghlu77

Hi,

I'm hoping for some advice here please. I am 46 and my only debt is my mortgage (20 years left). I have 40K available to somehow invest as I don't want it sitting in a bank costing me money due to inflation.

I have looked at Irish Life and Zurich's MAPs and Prisma funds but the thoughts of paying 41% exit tax after 8 years makes these less attractive. I don't want to put the money in Trade Republic or Degiro as I'm too under educated in those services and it's a bit daunting.

Statebonds seems like my best bet but 1.6% is a bit rubbish albeit tax free. I'm sure other people are in a similar situation and i wonder if anyone can offer any advice please?

TIA

dxhound2005

If your lender allows it, you could make extra payments on the mortgage. This calculator shows how much you could save off the repayments.

https://www.ccpc.ie/consumers/money-tools/extra-mortgage-payments-calculator/?gclid=CjwKCAjwscGjBhAXEiwAswQqNIyRXxe2QjOsmyAvPVMwIp3V7u7kBYcGxOyedI9q1V6rSKB4JVtyeRoCxS8QAvD_BwE&gclsrc=aw.ds

foghlu77

So you feel, I'd be better paying the 40K off the mortgage?

dxhound2005

It would depend on the variables on that calculator. Did you feed them in, and how much will it save you with a lump sum, or how long will it take off the 20 years?

the_amazing_raisin

Another option is to keep the term the same and make the monthly repayments lower

It'll give you a bit more money in your pocket every month which you can use to increase your regular savings

At the very least it'll give you a bit of breathing room against cost of living increases

Alkers

What is the state of your pension?

foghlu77

https://www.boards.ie/discussion/comment/120644073#Comment_120644073

It saves me 20K in 'Cost of credit'. My repayments reduce but my term (21 years) stays the same

foghlu77

https://www.boards.ie/discussion/comment/120644343#Comment_120644343

Thanks

foghlu77

https://www.boards.ie/discussion/comment/120644859#Comment_120644859

Have a pension with work, so I feel I'm good there.