Pay down mortgage or invest

[lesnock]

@anniejey Hey, rather not say sorry because there’s only a handful of jobs in my field.

 

[bearpat]

@lesnock If you wouldn’t mind, could I ask what you were doing before becoming GM that led to you becoming GM?

 

[lesnock]

@bearpat I was a senior subject matter expert in an area. I was then lucky to get to lead a team. Then got given a few more teams and the role just kind of grew organically. If I’m honest it’s a combination of hard work and luck. Right place and time, and because I was enthusiastic and get on well with other I was given opportunities.

 

[bearpat]

@lesnock Awesome, good on you and cheers for the insight!

 

[laura_d]

@lesnock With interest rates so high, it will be near impossible to beat.

With investing, even if you manage to make the same gains or a little more, you're also taxed on that.

You can consider your home loan payments as equivalent after tax gains.

 

[lesnock]

@laura_d Thanks. That’s a great way of thinking about it.

 

[kokie]

@lesnock Normally they advise paying off the mortgage before investing any major amount of money outside of kiwisaver. Get the house paid off as fast as you can then build a portfolio.
But do what you want its your money.

 

[rukado]

@lesnock Mortgage: Is the size of your mortgage troubling you? How much do you value peace of mind? Emotional benefits cannot be measured in strictly financial terms.

Invest: If you don’t pay down your mortgage, where are you going to invest your money? Are you a savvy investor? Potential higher returns also mean higher risk. Are you comfortable with that? If not, you might want to attack your mortgage as the savings are guaranteed.

Hope I’ve helped!

 

[lesnock]

@rukado That’s good- thanks.

I’m actually pretty relaxed about the mortgage level. My partner will start earning properly again in a year or two and I think my salary is sustainable. We can ride out the rates and then get on top of the actual debt as we go.

I’m terms of investing- I am not a savvy investor. I think it’s worth knowing that and staying in my lane.

I’m going to look at upping my principal repayment rate.

 

[rukado]

@lesnock Upping your monthly repayments sounds good. Depending on your financial game plan, you could still put aside some money to invest. You’re in your mid-30s, so you have a long time horizon. Your investment will pay off in the long run.

Personally, I crushed my mortgage five years ago. I was planning for early retirement and didn’t want any debt. Everyone has different goals and strategies.

 

[lesnock]

@rukado Nice one! Good work getting rid of that mortgage!

 

[resjudicata]

@lesnock Start at that IO loan

Make sure to get life insurance until its easy paid down

If you died your partner will not be able to cover such a large amount

What industry are you in that pay 270k a year