Money - advice!

[sasguru]

Pay off mortgage. Then you'll have lots of disposable dosh to invest in a balanced portfolio - and don't forget the lifestyle choices.

[Pringle21]

The head honcho responsible for fidelity’s performance over the past few years has just left, I'd need evidence they can continue that performance without him before they see a penny of my cash.

It was the manager of their Special Situations Fund that left - I wouldn't put money into their own funds but I use them to purchase funds from the other 50 or so providers available.

[Buffoon]

If you are talking about surplus revenue at the moment rather than a lump sum the paying more towards the mortgage is always going to be the best bet. That is not say do something different if it was a lump sum, or a regular savings plan would not be better. I am thinking that you have surplus funds now, but that may be temporary and may not continue (e.g. the time between contracts).

[Rantor]

If you are talking about surplus revenue at the moment rather than a lump sum the paying more towards the mortgage is always going to be the best bet. That is not say do something different if it was a lump sum, or a regular savings plan would not be better. I am thinking that you have surplus funds now, but that may be temporary and may not continue (e.g. the time between contracts).

Lottery Scratch Cards - 1000 of these a month will stop you doing anything else that'll spend money.

[n5gooner]

Lottery Scratch Cards - 1000 of these a month will stop you doing anything else that'll spend money.

wonder what the return is on these ??

[Ardesco]

One of the accounts that lets you offset your savings against mortgage interest. This way you still have easy access to the cash if it is needed, you pay less interest on your mortgage and pay your mortgage off quicker.

It's a winner IMHO.

[Rantor]

wonder what the return is on these ??

Dunno, but probably better than most of my 'investments' in the period 2000-2001. I try not and think about htis too much

[TheRightStuff]

One of the accounts that lets you offset your savings against mortgage interest. This way you still have easy access to the cash if it is needed, you pay less interest on your mortgage and pay your mortgage off quicker.

It's a winner IMHO.

I agree. I've been with First Direct and I've got their offset mortgage account. Brilliant.

[IR35 Avoider]

Another vote for paying off the mortgage.

Due to low interest rates over the last five years, the cost of every kind of asset has risen as people borrow to invest, nothing is good value at the moment.

The highest return you can plan for is a nominal 7% from shares, considering how risky they are they make no sense compared to about 6% you'll get from paying off the mortgage.

When your mortgage is paid off, you can filter money into whatever is least expensive at the time.

[Euro-commuter]

Paying off mortgage is good compared to other savings that are not tax-sheltered. even Warren Buffett (world's most successful investor) said that for most people, paying off their house loan is one of the best investments they can make.

Remember though that using up your ISA allowance every year is free money from the Treasury, it doesn't get better than this.

If you invest in a Unit Trust, OEIC, or other managed fund, buy from a "fund supermarket". E.g. Hargreaves Lansdown (no particular recommendation there). The Fund Management Company will have built in an entry charge and an annual management fee: these are to pay the broker. A fund supermarket is a broker, but one that generously gives back most of these fees. Typical example: Fund charges 5% entry, and 1.5% per year. That's what it will cost you from an old-style broker, or from the Fund itself. From a fund supermarket, 0.5% entry (sometimes even 0%), 1.25% per year.

If you want to buy index trackers, Barclays iShares are registered in Ireland so don't attract Stamp Duty (0.5% on UK-registered stuff); and Selftrade.co.uk waive their 12.50 fee on iShares purchases. So this is a low-cost way of using up dribs and drabs of funds.

Man people recommend the High Yield Portfolio (HYP) as expoiunded on www.fool.co.uk. Well worth a read.

I'd note that you can find out more for free in readable form from the Motley Fool (fool.co.uk) than anywhere else. But at the end of the day, they are evangelists for buying your own shares, and (HYP excepted) for trying to make more by trading them more frequently. Personally I don't buy that.