Investment & Investing

Brewdog

Too nice. I want something that absolutely makes me rich at the expense of the planet and everything on it.

Hey man, I’m just going with the flow, just trying to fit in.

Amazon?

It's funny in light of the ongoing conversation about people in history who did good things but became rich through slavery

Maybe some pharma would fit the bill?

Although quite a few are choosing to go bankrupt in the face of group litigation.

I think that would be the aim of any corporation you can buy shares in.

I'm pretty sure there's a bunch of orgs out there that aren't flat out ruining the planet.
Everything has an impact, sure, but investing in pharma is probably better than petroleum in terms of impact on the planet and investing in software also likely less damaging than some mob making the latest smart bombs.

Team Ineos

Mmm fracking. Who needs clean water when you have shale oil!

VT Gravis Clean Energy Income

This is doing well for me, even had chance to top up further with the recent dip.

Live nation

Is overpaying my mortgage (3%) the best place to put extra cash at the moment?

always a good, low risk option.

For your peace of mind - maybe
For your returns - unlikely

I am just about the most financially risk-averse person ever so thanks for the confirmation.

the most financially risk-averse person ever

didnt you have an AARN chainring?

I reckon I could turn a profit for that on Reddit.

Where's that picture of the decision tree for what to do with your money?

IIRC, it's something like pension -> mortgage -> isa -> savings -> mattress -> sToCkSaNdShaRes

Other factors would be your age, risk appetite, liquidity requirement, current risk-free interest rate etc...

It's up thread somewhere.

This one? Doesn't really say anything about overpayment for debt at 3%. I just resent 75% of my payment going on interest. Looking to move in a couple of years so would also increase our LTV for that.

@umop3pisdn
No, the best place to put your cash is in my bank account.

Looking to move in a couple of years so would also increase our LTV for that.

Doesn't matter too much there - if you've saved elsewhere you can always just pull the money out and use that for the deposit and you've got your better LTV that way instead.

It's the usual tradeoff.
Paying off a 3% mortgage is a very safe way of investing at 3%
Putting money into a tracker/stocks/shares is a less safe way of probably making more than 3% but maybe not if the markets go weird.

Right now obviously the markets are very volatile. So you've got a good chance of making quite a bit if they recover and a good chance of losing quite a bit if they tank again at the wrong time.

So it's entirely down to risk appetite.

I overpaid as much of my mortgage as I could when I had it and I don't regret paying it off.
If I'd tried to get clever and put that money into shares or something, Covid would've tanked them and I'd still have a mortgage.

That's a good flowchart. I'm glad that (at 38) I'm saving for retirement, I just wish I'd started that 15 years ago instead of 7.

It doesn't, but then it is a simplistic model that can't take into account all permutations of people's circumstances.

It seems that you're already thinking along the lines of reducing total interest paid, and the way to do that is to overpay.

The reasons for not doing so would be 1) utility of liquid assets (you need cash now for some reason) or 2) you can earn better rates of interest elsewhere, that can offset the interest paid (including transfer costs), without any appreciable increase in risk.

2) is hens teeth.

[Edit] The alternative would be chucking it into your pension. The best comparison would be to a spreadsheet showing you the net present value of both.