Soon we will have some extra money each month to work with - how
should we invest it?
Q.
My partner and I want to sell our house and move around
September 2010. Our mortgage is currently $239,000 on a fixed rate
of 8% until November 2010, with fortnightly repayments of $814. We
currently save $40k a year for investments, cash savings and home
renovations. We will soon pay off our car loan and have an extra
$850 a month, or just over $15,200 by September 2010. Should we add
this to the amount that we save, or would we be better off using it
to make additional mortgage repayments?
A.
It would be great if you could add it to your existing mortgage
payments but it is probable that your lender will not allow it. The
other option is to invest it in high interest bearing bank deposits
in the name of the lowest income earner.
Each week financial advisor Noel Whittaker answers your
questions.
