Thanks Ken. We overpay by £250 at the moment and it makes a MASSIVE difference over the length of the mortgage. Reduces it by something like a third. And that is right now with two young kids so we will continue to increase this where we can. I'm surprised when I push this advise onto friends and point them at calculators and they aren't that interested. Makes me wonder how these finance companies and society in general are set up to persuade us to be blind borrowers.
Hey Frank! Welldone!! It's absolutely crazy that many people prefer to be in debt. It's Western culture thing and it will unfortunately continue to exist for many people because they see others around them with debt and it's seen as a norm. Hoping we can begin to change that a bit with out message on this channel :)
Great video. My sacrifices: 1. In the process of returning my car which has been on finance. Looking to get rid of finance altogether and buy a banger! 2. No more takeaway/restaurant food but worst case scenario: once a week! Home food is the healthiest and cheapest👍🏽
@@TheHumblePenny agreed. I want to be in your position by the time I am 40. God willing. I am currently 27. Not made the best of choices in the past when it comes to money, but we live and learn! Hey, I think it will be a good idea if you do regular videos of answering questions from your viewers, based on realistic and live financial problems. Nevertheless, all the best! Keep up the advice and wisdom you are giving, it’s really helped me.
@@TheHumblePenny sold my car yesterday and cleared the finance off! Feels great. Now for the monthly bus pass until I clear the rest of my debt off. ☝🏼
I am an American but am watching your videos to get motivated and learn how y'all do it! Any young person reading this, be smart pay off your mortgage early. If coronavirus has taught us anything it is to reduce our expenses to be prepared for the unexpected.
Ken, I'm surprised this video has not been viewed by a million people. This information is cracking.!! and although we have only have 6 years left on our mortgage we think your information is absolutely invaluable especially at this time. Thanks tor sharing your financial brain with us . God bless you and your lovely wife. 👍🏾👍🏾
I've been doing this for a couple years now, currently overpaying double my mortgage payment at the moment. Hoping to be mortgage free in 5 years 🙏 I'm a firm believer in setting life goals, always have something to aim for and you'll do it :)
Yayyyyyyyy, you picked my question. Thank you. I’m now a homeowner as of August 17th. I’m here now because I want to know how to be mortgage free🙈🙈🙈. I’ve started over paying monthly. I can not over pay by 10% a year. Can’t even afford a more than 10% over payment.
That is EXCELLENT news!! Huge congrats getting on the ladder! You're changing the stats about home ownership. It's no small thing owning your own home. Huge welldone! 😊
We've been overpaying AND investing for 5 years now. This current period we are investing only, and increasing our emergency fund. I feel 2022 will bring problems, so will probably start overpaying again next year sometime once we've got 18 months emergency fund. It'll be hard but worth it.
I already compressed my term back in 2013 to finish in 2026, when the pandemic started in 2020 I decided to overpay on steroids, paying an extra 154% extra on the normal monthly payment. Result (and it rhymes) - mortgage free by January 2023!
We are on an organised budget every month. Paid off our debt last year and currently building our emergency fund before making any overpayments on the mortgage. Excited to start paying it off early 😊
Hi Ken, Agree with you completely that living mortgage free gives you mental freedom too! I can’t believe more people don’t over pay their mortgage, even if it’s by a tiny amount it all helps! Thanks for a great video as always, Gary
Hey Gary, I think most don't overpay simply because they aren't aware and possibly because they don't understand the impact of small overpayments. Thanks for watching! Keep pushing! 💪🏾💪🏾😀
Excellent content Ken, your passion and enthusiasm is apparent. I paid a lump sum toward my overpayment to accommodate the impact of COVID on the economy. I own London properties, myself and my wife will keep calm and carry on.
Due to your other video I've started making overpayments on my mortgage. As you say in this video, you can start with small amounts (as I am) and I'll then increase it as and when I can. I will also increase as my circumstances change. The other idea you gave me was to reduce one payment for something else so I can increase my mortgage overpayments. So I reduced my electricity bill DD amount as my account with the supplier is a lot in credit. So I'm going to pay another 20 quid off my mortgage every month. Not a massive amount but it's all going to help. In short, thanks for the ideas and tips😊
My aim is to pay off an investment property mortgage in the next 4 years ( £97k left ) as well as pay down my own home mortgage ( £198k left ) by 10% per year ( over payments of +£1580 pcm ) with the aim to fully be mortgage free by the time I’m 40 ( currently 34 ) . And I’m doing this all by myself with no one else plus I invest in the stock market ISA ( 1k pcm ) and I have other property up north . Sacrificing a lot but then again Iv always been a good saver . I could be driving around in a new Range Rover and wear named cloths but I’m choosing to stick to my 2009 banger with 190k miles on the clock and I shop at the cheapest cloths shop in the uk so you could say my style has taken the biggest hit 😂. I also sacrificed my sport of racing cars so I could turn the garage at my home into a granny annex which I rent out and helps massively with paying my now massive monthly mortgage repayments .
You inspired me. I can only overpay 10% of my mortgage what we do from the beginning (1 year) when we remortgage next year I will ask my advisor for no limit overpayment mortgage. I think we could manage pay about 100 pounds every month.
I won’t be overpaying on my mortgage at 1.54% what’s the point adjusted for inflation it’s basically 0%. I actually took a longer term mortgage than I needed to keep the cash flow. Invest all the extra money in the market and easily make more than double the return
Hi David, please proceed :). Everyone should do what works for their long term goals and immediate personal circumstances. If you haven't seen it, please see our video on "Overpay mortgage vs Invest". Have a fab day!
My mortgage minimum repayment is AUD$1210 per month. Currently, I make AUD$1500 payment bi-weekly - on track for paying it off in 9 years. I also chose to live in an area where a 3 bed house cost AUD$350k rather than the average AUD$600k.
Brilliant! Good move for sure. Do you have friends living in the more expensive areas? What do others close to you make of your goal to become mortgage free in 9 years?
The Humble Penny One or two friends who live in the more expensive areas and it’s a double hit for them, because there’s also wine bars and fancy restaurants which are just going to make it even harder to save. Generally, I surround myself with people of a similar mindset, so I go camping with other families for holidays and find free activities that are provided by the local shire council. All our kids have great fun and we spend a lot less money. And fortunately, the closest person in my life, my wife, will happily shop at three different supermarkets to make sure that she keeps our food bill to a minimum. Makes such a difference when your partner has the same mindset.
@@TheHumblePenny I have to disclose though that in order for folks to really pay their mortgage off in a similar time frame - they really need to be in high salary paying jobs ie 30K + for both, and without kids. As a professional earning 40K and a partner on a similar salary it’s doable. If they’re working at Tesco’s etc it’s going to be a much harder slog in my humble opinion. But there are some good points here to help them mitigate that which is fantastic stuff to know. Cheers bro.
Hi Ken, my help to buy loan is approaching 5 years but considering the high interest rate and I was planning on remortgaging to pay it off. However considering the current high interest rate is it worth NOT paying the help to buy yet as I believe interest on htb should be lower than re-mortgage loan
Awesome video Ken! I have always been comfortable with slow paying the mortgage and investing the extra cashflow. This video has definitely made me question this approach. I need to start over paying asap!
This is definitely a goal of ours so I can't wait to watch the whole video. I was one of the 5000 people that subscribed off the back of the last video on this topic. #goals
Hi Ken, please can you advise how to make overpayments if your mortgage is in sub accounts. Do you make overpayments as one whole or do you target a sub account and how do you make this decision? The interest rate is the same for all accounts.
Ken great video .What about the 10 percent overpayment but are you also allowed to reduce the term .Ken my residential morgage is 1.89 percent .Im not sure do I pay it off or invest in a isa and use that to pay it off in a few years cheers
Hi, I have a question on the 2 weeks payments. If my mortgage payment is 3rd week of the month and interest is added last week of the month, would it not be better for me to make the overpayment right after interest is added rather than 2 weeks after the usual mortgage payment?
Hi Ken great video as usual I can confirm that being mortgage free gives you a great feeling. I had made up in my mind that I would be mortgage free before my 60th birthday which was in August. So I joined a mentoring program which helped to change my mindset and I made sure each month I made an overpayment and by May I was mortgage free 🎉🎊🎉🎊🎉🎊💃🏾💃🏾 it really is a fantastic feeling. I am do glad that I made the sacrifice to pay it off before the due date although it would have been in July those extra two months of being debt free was and still is an amazing feeling. I am now on the investment ladder and have savings pots to help to keep me on track 😊 so that the extra money doesn't just get spent 😂 Keep up the good work Ken 👍🏾🙏🏽
I do my overpayment at the same time as the mortgage is due. Should I change the date of when the additional £500 per month is paid. It seems as you advise the you made two payments per month!
Is your interest calculated daily? If it is, then if you can make an earlier overpayment then you're charged less interest for that month - this all adds up! The other idea of making two payments a month is related to paying bi-weekly. If you pay bi-weekly, then you make 26 payments per year, so you in effect make an extra month's payment per year. Quick example... Monthly payment of £1000 = 12 x £1000 = £12000 per year Bi-weekly payment of £500 = 26 x £500 = £13000 per year With the bi-weekly payment, not only do you pay more every year, but you're reducing the principal earlier every month, so it has a double effect. If this option is available from your lender, and you can afford to do it, then you should seriously consider doing it.
There must be a psychological hack or profile for someone who use a lot of hand gesture when communicating. Maybe clever and passionate individuals tend to do so ..who knows
@@TheHumblePenny now they tell me if I take 2 years mortgage, rate is 1.4 ... in two years it is 3.5 .... but if I take 5 years, it is 1.56 and stays the same for five years .. 3.5 is higher ... no?
@@shahilagh It will rise to 3.5% if your 2 year fixed rate mortgage rate ends. The bank will advise you to re-mortgage 3 to 6 months prior to the end of your fixed rate. Therefore you can choose another 2 years if you wish and the interest rate will not increase to 3.5% rather it will be the rate you have chosen for your remortgage. Hope that makes sense.
By hustling hard!!!! We paid off just over £100k in our last mortgage year. Basically, you'd need to explore side hustle ideas (I'd suggest online ideas) combined with your job income savings. It's very hard but it's possible. In summary, taking calculated risks helps hugely. You've done the right thing to set it as a goal though. That's usually the beginning.
I think your videos are great some brilliant content but on this point although I love the idea of saying I have cleared my mortgage the rational side of me says this makes little sense. Interests rates could go up but historically they have never been lower than now. Returns on ETF's such as the S&P 500 through Vanguard could smash any extra interest paid over the term on your mortgage (if you paid the same amount into these that you would have thrown at your mortgage) plus this money is easily accessible a house is not an ATM you can't take money out of it through the letterbox when you need it! People who pay off their mortgage early while not ensuring they have sufficient emergency cash and other investments could find themselves in a lot of trouble the simple advice often heard is don't put all your eggs in one basket.
I hear where you're coming from Chris, but this is where I landed on this one. Say you make 7% return on ETF - then Capital Gains Tax takes 25% (not sure what the rate is where you are, but that's my rate) so now I'm at 5.25% and I'm taxed 37.5% on dividends. Then inflation is running at 2%, so now I'm at 3.25% real returns. My mortgage is rate is just under 3% and that's guaranteed. Returns on the ETF, especially in these COVID times could be flat or even negative over the next year or two. The world stock markets have only recently returned to where they were about a year ago. The result, I'm doing a bit of both, with a 65/35 split towards the mortgage.
Hi Chris, thank you for watching. You make an excellent point especially about having sufficient emergency cash and other investments. Putting all eggs in one basket is not a good move. I made a video about paying off the mortgage vs Investing or both. Check it out here: ua-cam.com/video/80b5SFnZgoM/v-deo.html . We did both and recommend that everyone factors in their current circumstances and future goals in order to decide what works best for them :)
What sacrifices are you making in order to become mortgage free? And how's it going? Please share below and give others some inspiration 😀💪🏽💪🏽
Thanks Ken. We overpay by £250 at the moment and it makes a MASSIVE difference over the length of the mortgage. Reduces it by something like a third. And that is right now with two young kids so we will continue to increase this where we can.
I'm surprised when I push this advise onto friends and point them at calculators and they aren't that interested.
Makes me wonder how these finance companies and society in general are set up to persuade us to be blind borrowers.
Hey Frank! Welldone!! It's absolutely crazy that many people prefer to be in debt. It's Western culture thing and it will unfortunately continue to exist for many people because they see others around them with debt and it's seen as a norm. Hoping we can begin to change that a bit with out message on this channel :)
Great video. My sacrifices:
1. In the process of returning my car which has been on finance. Looking to get rid of finance altogether and buy a banger!
2. No more takeaway/restaurant food but worst case scenario: once a week! Home food is the healthiest and cheapest👍🏽
Hi Akib, those are big sacrifices but ones that will really serve you well. Good work! :)
@@TheHumblePenny agreed. I want to be in your position by the time I am 40. God willing. I am currently 27. Not made the best of choices in the past when it comes to money, but we live and learn!
Hey, I think it will be a good idea if you do regular videos of answering questions from your viewers, based on realistic and live financial problems. Nevertheless, all the best! Keep up the advice and wisdom you are giving, it’s really helped me.
@@TheHumblePenny sold my car yesterday and cleared the finance off! Feels great. Now for the monthly bus pass until I clear the rest of my debt off. ☝🏼
I am an American but am watching your videos to get motivated and learn how y'all do it! Any young person reading this, be smart pay off your mortgage early. If coronavirus has taught us anything it is to reduce our expenses to be prepared for the unexpected.
Great to have you watching! 👊🏾. You're 100% spot on about what we've learned from this pandemic
Ken, I'm surprised this video has not been viewed by a million people. This information is cracking.!! and although we have only have 6 years left on our mortgage we think your information is absolutely invaluable especially at this time. Thanks tor sharing your financial brain with us . God bless you and your lovely wife. 👍🏾👍🏾
It's a no brainer. Renting out spare rooms in my house and using it all to overpay mortgage. Have a few years knocked off already
Brilliant, Barry! 😀
Well done barry
I've been doing this for a couple years now, currently overpaying double my mortgage payment at the moment. Hoping to be mortgage free in 5 years 🙏 I'm a firm believer in setting life goals, always have something to aim for and you'll do it :)
Amazing, Jamie!! You can do it! 5 years will come very quickly! :)
Yayyyyyyyy, you picked my question. Thank you. I’m now a homeowner as of August 17th. I’m here now because I want to know how to be mortgage free🙈🙈🙈. I’ve started over paying monthly. I can not over pay by 10% a year. Can’t even afford a more than 10% over payment.
That is EXCELLENT news!! Huge congrats getting on the ladder! You're changing the stats about home ownership. It's no small thing owning your own home. Huge welldone! 😊
We've been overpaying AND investing for 5 years now. This current period we are investing only, and increasing our emergency fund. I feel 2022 will bring problems, so will probably start overpaying again next year sometime once we've got 18 months emergency fund. It'll be hard but worth it.
18 months is very healthy
I already compressed my term back in 2013 to finish in 2026, when the pandemic started in 2020 I decided to overpay on steroids, paying an extra 154% extra on the normal monthly payment.
Result (and it rhymes) - mortgage free by January 2023!
🔥🔥🔥
We are on an organised budget every month. Paid off our debt last year and currently building our emergency fund before making any overpayments on the mortgage. Excited to start paying it off early 😊
Whoop whoop!😀
Hi Ken,
Agree with you completely that living mortgage free gives you mental freedom too!
I can’t believe more people don’t over pay their mortgage, even if it’s by a tiny amount it all helps!
Thanks for a great video as always,
Gary
Hey Gary, I think most don't overpay simply because they aren't aware and possibly because they don't understand the impact of small overpayments.
Thanks for watching! Keep pushing! 💪🏾💪🏾😀
Excellent content Ken, your passion and enthusiasm is apparent. I paid a lump sum toward my overpayment to accommodate the impact of COVID on the economy. I own London properties, myself and my wife will keep calm and carry on.
Good move! Your London properties will pay off if in great locations.
Due to your other video I've started making overpayments on my mortgage. As you say in this video, you can start with small amounts (as I am) and I'll then increase it as and when I can. I will also increase as my circumstances change. The other idea you gave me was to reduce one payment for something else so I can increase my mortgage overpayments. So I reduced my electricity bill DD amount as my account with the supplier is a lot in credit. So I'm going to pay another 20 quid off my mortgage every month. Not a massive amount but it's all going to help. In short, thanks for the ideas and tips😊
You're most welcome, Marty 😊
Love your tips
My aim is to pay off an investment property mortgage in the next 4 years ( £97k left ) as well as pay down my own home mortgage ( £198k left ) by 10% per year ( over payments of +£1580 pcm ) with the aim to fully be mortgage free by the time I’m 40 ( currently 34 ) . And I’m doing this all by myself with no one else plus I invest in the stock market ISA ( 1k pcm ) and I have other property up north .
Sacrificing a lot but then again Iv always been a good saver . I could be driving around in a new Range Rover and wear named cloths but I’m choosing to stick to my 2009 banger with 190k miles on the clock and I shop at the cheapest cloths shop in the uk so you could say my style has taken the biggest hit 😂. I also sacrificed my sport of racing cars so I could turn the garage at my home into a granny annex which I rent out and helps massively with paying my now massive monthly mortgage repayments .
This is a great video! The way you explain things makes it all the easier
Thanks a lot, Stacey! :)
You inspired me. I can only overpay 10% of my mortgage what we do from the beginning (1 year) when we remortgage next year I will ask my advisor for no limit overpayment mortgage. I think we could manage pay about 100 pounds every month.
I won’t be overpaying on my mortgage at 1.54% what’s the point adjusted for inflation it’s basically 0%. I actually took a longer term mortgage than I needed to keep the cash flow. Invest all the extra money in the market and easily make more than double the return
Hi David, please proceed :). Everyone should do what works for their long term goals and immediate personal circumstances. If you haven't seen it, please see our video on "Overpay mortgage vs Invest". Have a fab day!
My mortgage minimum repayment is AUD$1210 per month. Currently, I make AUD$1500 payment bi-weekly - on track for paying it off in 9 years. I also chose to live in an area where a 3 bed house cost AUD$350k rather than the average AUD$600k.
Brilliant! Good move for sure. Do you have friends living in the more expensive areas? What do others close to you make of your goal to become mortgage free in 9 years?
The Humble Penny One or two friends who live in the more expensive areas and it’s a double hit for them, because there’s also wine bars and fancy restaurants which are just going to make it even harder to save. Generally, I surround myself with people of a similar mindset, so I go camping with other families for holidays and find free activities that are provided by the local shire council. All our kids have great fun and we spend a lot less money. And fortunately, the closest person in my life, my wife, will happily shop at three different supermarkets to make sure that she keeps our food bill to a minimum. Makes such a difference when your partner has the same mindset.
💯😊
Good advice Ken!! Keep it up bud
Much appreciated, Gerry! 😀
@@TheHumblePenny I have to disclose though that in order for folks to really pay their mortgage off in a similar time frame - they really need to be in high salary paying jobs ie 30K + for both, and without kids. As a professional earning 40K and a partner on a similar salary it’s doable. If they’re working at Tesco’s etc it’s going to be a much harder slog in my humble opinion. But there are some good points here to help them mitigate that which is fantastic stuff to know. Cheers bro.
I dont understand how i can pay more than my 20% cap at the 'end' of my fixed rate deal? I would have to wait four years?
You do it before you remortgage.
@TheHumblePenny thank you. The penny just dropped. I'm really glad i found your channel!!🤣
Hi Ken, my help to buy loan is approaching 5 years but considering the high interest rate and I was planning on remortgaging to pay it off. However considering the current high interest rate is it worth NOT paying the help to buy yet as I believe interest on htb should be lower than re-mortgage loan
Awesome video Ken! I have always been comfortable with slow paying the mortgage and investing the extra cashflow. This video has definitely made me question this approach. I need to start over paying asap!
Definitely worth making sure that your approach is suitable for you :) See my video on "Pay off mortgage vs Investing"
This is definitely a goal of ours so I can't wait to watch the whole video. I was one of the 5000 people that subscribed off the back of the last video on this topic. #goals
Hey Tolu, wonderful! Much 💛 for subscribing! #goals indeed!! 😊
Hi Ken, please can you advise how to make overpayments if your mortgage is in sub accounts. Do you make overpayments as one whole or do you target a sub account and how do you make this decision? The interest rate is the same for all accounts.
Ken great video .What about the 10 percent overpayment but are you also allowed to reduce the term .Ken my residential morgage is 1.89 percent .Im not sure do I pay it off or invest in a isa and use that to pay it off in a few years cheers
Hi Stephen, great question - Please watch this - ua-cam.com/video/80b5SFnZgoM/v-deo.html
@@TheHumblePenny Thanks ken will check it out tonight have a great weekend and thanks for the great videos and advice
Hi Ken- different question, what email address I should use to send out the blog opening receipt to get bonuses? Thanks
Totally agree with you Ken. 👍
😀👊🏾
Hi, I have a question on the 2 weeks payments. If my mortgage payment is 3rd week of the month and interest is added last week of the month, would it not be better for me to make the overpayment right after interest is added rather than 2 weeks after the usual mortgage payment?
Hi Ken great video as usual
I can confirm that being mortgage free gives you a great feeling. I had made up in my mind that I would be mortgage free before my 60th birthday which was in August.
So I joined a mentoring program which helped to change my mindset and I made sure each month I made an overpayment and by May I was mortgage free 🎉🎊🎉🎊🎉🎊💃🏾💃🏾 it really is a fantastic feeling.
I am do glad that I made the sacrifice to pay it off before the due date although it would have been in July those extra two months of being debt free was and still is an amazing feeling.
I am now on the investment ladder and have savings pots to help to keep me on track 😊 so that the extra money doesn't just get spent 😂
Keep up the good work Ken 👍🏾🙏🏽
I do my overpayment at the same time as the mortgage is due. Should I change the date of when the additional £500 per month is paid. It seems as you advise the you made two payments per month!
Is your interest calculated daily? If it is, then if you can make an earlier overpayment then you're charged less interest for that month - this all adds up!
The other idea of making two payments a month is related to paying bi-weekly. If you pay bi-weekly, then you make 26 payments per year, so you in effect make an extra month's payment per year. Quick example...
Monthly payment of £1000 = 12 x £1000 = £12000 per year
Bi-weekly payment of £500 = 26 x £500 = £13000 per year
With the bi-weekly payment, not only do you pay more every year, but you're reducing the principal earlier every month, so it has a double effect. If this option is available from your lender, and you can afford to do it, then you should seriously consider doing it.
@@downwind_david thank you ever so much for taking the time to explain this! ❤
@@downwind_david Excellent job explaining this 😀
There must be a psychological hack or profile for someone who use a lot of hand gesture when communicating. Maybe clever and passionate individuals tend to do so ..who knows
GOALS!!! 🔥 🔥 🔥
💪🏾💪🏾😀
Really good tips in this video! I'm in the pre-mortgage phase, trying to find a suitable house to buy that's not completely in the sticks lol.
Super important phase to be in. We're making a video soon to help in this area :)
@@TheHumblePenny yay! Can’t wait!
Do you know if one wants to buy with mortgage now is it better to have two or five years fix rate?
Personally, if I can, I'd choose 2 year over 5 years. Interest rates are highly unlikely to rise any time soon.
@@TheHumblePenny now they tell me if I take 2 years mortgage, rate is 1.4 ... in two years it is 3.5 .... but if I take 5 years, it is 1.56 and stays the same for five years .. 3.5 is higher ... no?
@@shahilagh It will rise to 3.5% if your 2 year fixed rate mortgage rate ends. The bank will advise you to re-mortgage 3 to 6 months prior to the end of your fixed rate. Therefore you can choose another 2 years if you wish and the interest rate will not increase to 3.5% rather it will be the rate you have chosen for your remortgage. Hope that makes sense.
Love your videos! Could you make more videos on blogging 🔥
I'd love to make more blogging videos but I'm not sure as many people are that interested!? 🤔
Hi sir ,
How can you pay off a mortgage of say £80,000 in 2 years please. Thanks
By hustling hard!!!! We paid off just over £100k in our last mortgage year.
Basically, you'd need to explore side hustle ideas (I'd suggest online ideas) combined with your job income savings. It's very hard but it's possible. In summary, taking calculated risks helps hugely.
You've done the right thing to set it as a goal though. That's usually the beginning.
15% to future: FIRE / Retirement then rest to getting that mortgage debt gone!
I think your videos are great some brilliant content but on this point although I love the idea of saying I have cleared my mortgage the rational side of me says this makes little sense. Interests rates could go up but historically they have never been lower than now. Returns on ETF's such as the S&P 500 through Vanguard could smash any extra interest paid over the term on your mortgage (if you paid the same amount into these that you would have thrown at your mortgage) plus this money is easily accessible a house is not an ATM you can't take money out of it through the letterbox when you need it! People who pay off their mortgage early while not ensuring they have sufficient emergency cash and other investments could find themselves in a lot of trouble the simple advice often heard is don't put all your eggs in one basket.
Good points there. I'm hedging a bit at the moment. Just started on the s&p, and will overpay on the mortgage on any overtime money.
I am with you. Long term, i am better off investing the money instead.
I hear where you're coming from Chris, but this is where I landed on this one. Say you make 7% return on ETF - then Capital Gains Tax takes 25% (not sure what the rate is where you are, but that's my rate) so now I'm at 5.25% and I'm taxed 37.5% on dividends. Then inflation is running at 2%, so now I'm at 3.25% real returns. My mortgage is rate is just under 3% and that's guaranteed. Returns on the ETF, especially in these COVID times could be flat or even negative over the next year or two. The world stock markets have only recently returned to where they were about a year ago.
The result, I'm doing a bit of both, with a 65/35 split towards the mortgage.
Hi Chris, thank you for watching. You make an excellent point especially about having sufficient emergency cash and other investments. Putting all eggs in one basket is not a good move. I made a video about paying off the mortgage vs Investing or both. Check it out here: ua-cam.com/video/80b5SFnZgoM/v-deo.html . We did both and recommend that everyone factors in their current circumstances and future goals in order to decide what works best for them :)
@@relarras Watch this if you haven't already - ua-cam.com/video/80b5SFnZgoM/v-deo.html
The privileged penny
😂. Slight edit - The Privileged Penny (after 10 years of solid hustling and mindset shifts)