Join Early Retirement Today
Thread Tools Search this Thread Display Modes
UK motrgage and financial industry needs an enema.
Old 02-12-2013, 08:52 AM   #1
Thinks s/he gets paid by the post
nun's Avatar
Join Date: Feb 2006
Posts: 4,332
UK motrgage and financial industry needs an enema.

Here is a UK newspaper article about the pros and cons of paying off the mortgage early. I'm not interested in that, but that the article only mentions saving account interest as an investment benchmark against the mortgage interest rate. No reference to equities or bonds at all. This really highlights the vastly different savings/investment landscape in the UK and the US. In the UK people are even less educated about investing than in the US and very conservative. They will probably own something like a mutual fund in a tax free Individual Savings Acount (ISA), which is like a ROTH but without the age limits on withdrawals, but savings accounts and annuities are how most people invest. If they do want to buy mutual funds the expenses are high. It's rare to see expense ratios below 1%.

Also mortgages in the UK come with far more restrictions than the US when it comes to early pay off and fee. The UK financial industry needs a big Vanguard enema.

Paying off your mortage v saving | Money |
"The needs of the many outweigh the needs of the few, or the one." - Spock
Retired Mar 2014 at age 52
Target AA: 70% equity funds / 28% TIAA-Traditional/ 2% cash
Target WR: 0.0%,
Income from pension, rent, and eventually SS
nun is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


All times are GMT -6. The time now is 09:21 PM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2016, vBulletin Solutions, Inc.