Originally Posted by OKOC
I retire in 3 months time and up until now I have always intended to use my Terminal Gratuity to pay off part of my mortgage. I have just done the Financial Aspects of Retirement Course which sadly now no longer benefits from a session with an Independent Financial Advisor, which it used to, and the question of what best to do with your Gratuity wasn't covered on the course.
I can afford to keep paying my mortgage premiums, as luckily I am going into full time employment.
I know we are all different but I really would appreciate any advice please on whether to pay off part of the mortgage (5% fix) or invest, and in what.
It all depends on what your aspirations are I suppose. First priority would be to pay off any high priced loans e.g. credit card debts or other loans. If you can invest and gain interest above the mortgage rate, remebering the tax man will take a % of your interest, then best to invest and keep paying the mortgage out of income. Always handy to have some money available to meet surprise costs such as major repairs, kids education, weddings etc. etc. depending on where you are in the family support stakes.
Main thing is to lock the money into something that prevents you from spending it on frivolous items like cars and electrical goods - it may look like a big number but it will soon go if not looked after.