Paying off your mortgage is a big financial milestone and one that can free up cash to invest elsewhere. Given house prices today, mortgage payments often monopolise our budgets and can leave us with less to save than we might wish. Once done, you can switch your focus to other, potentially neglected areas, such as your retirement savings.
Charlotte, 50, has found herself in this situation. She’s paid off her mortgage and is keen to increase her regular investments ahead of retiring in 15 years. In addition, she has several fixed-rate savings accounts that will mature this year, giving her a further lump sum of £90,000 to £100,000 to invest.
Excluding her property, which is valued at £420,000, Charlotte has close to £500,000 in assets. Just under a third of this is in cash, while the rest is split between her workplace pension and her Isa, plus a not insignificant crypto holding.
