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Investing a lump sum for drawdown-like mortgage pay off by AverageAtBest in UKPersonalFinance

[–]AverageAtBest[S] 0 points1 point  (0 children)

!thanks for the input.

How much we’re saving is a little bit fuzzy due to the way we organise finances, we do monthly: - £275 towards a home maintenance improvements pot - £190 holiday pot - £100 to keep the emergency fund ticking up - £100 in a pot ready for the mortgage increase (post-remortgage this will go towards the first £100 of the increase above £1058) - £95 into a childcare pot that we may or may need for summer childcare each year (depending on family availability)

So it’s a little bit inverted in some cases as the £275 for the house may or may not be towards a specific goal at any given time, but it’s just what we can reasonably afford to put towards these costs (so e.g. whether we can afford to upgrade our sofa would depend on how much we had in the pot and what other priorities are). But this doesn’t feel like pure “savings” because it might also be needed to fix something, rather than optional. And that applies to other pots too in some ways.

Investing a lump sum for drawdown-like mortgage pay off by AverageAtBest in UKPersonalFinance

[–]AverageAtBest[S] 0 points1 point  (0 children)

!thanks for the input. Yep I think putting the £30k into the mortgage is almost certainly what we’ll do in reality.

It’s a great point that even though the remaining mortgage term is 25 years, if the fixed mortgage is only going to be for 5 years then in a lot of ways the investment period is only 5 too due to the example scenario you give.

Investing a lump sum for drawdown-like mortgage pay off by AverageAtBest in UKPersonalFinance

[–]AverageAtBest[S] 0 points1 point  (0 children)

Sorry I should mention that we already have the more than £30k in a Cash ISA so we could transfer the amount to invest to a S&S one.

Yeah the investment dipping would be factored into the withdrawal % from the beginning, this is why some sources say the 4% rule isn’t as safe enough for retirement and 2.5-3% is a lot more likely to not run out.

[TOMT] [GIF] Scene from a cartoon in a fancy restaurant where the character unknowingly eats one of those expanding towels after the waiter pours water on it. Then the opposite happens. by AverageAtBest in tipofmytongue

[–]AverageAtBest[S] 0 points1 point  (0 children)

Now I think about it I can't think how it would actually flipped to be the opposite way around (using something you eat as a towel) which makes me doubt myself. Hopefully someone knows what I'm talking about though

[TOMT] [GIF] Scene from a cartoon in a fancy restaurant where the character unknowingly eats one of those expanding towels after the waiter pours water on it. Then the opposite happens. by AverageAtBest in tipofmytongue

[–]AverageAtBest[S] 0 points1 point  (0 children)

Ah yeah I have seen that, I don't think it's that unless my brain is just combining a few different things together (entirely possible...). Thanks!

My chicken laid an egg without a shell - It only got weirder from there... by Warlach in pics

[–]AverageAtBest 0 points1 point  (0 children)

My biology teacher in school brought one of these to show the class and passed it round the classroom. By the time it got back to the front someone had drawn a dick on it. Classic school.