Join our community of smart investors

‘Can I pay off my mortgage and retire with £1.5mn?’

Portfolio Clinic: Our reader invested rather than paying off debt when rates were low, but now needs to pay off a loan and boost his retirement funds. Taha Lokhandwala helps find a way
June 14, 2024
  • Reader has nine funds invested across his different accounts – but might have too much style focus
  • Wants to grow portfolio by 7 per cent a year and retire in 10 years
  • Needs to clear a huge debt in two years
Reader Portfolio
Ed 50
Description

Pensions, Isas, general investment accounts, cash

Objectives
  • Grow investment pot to £1.5mn in 10 years
  • Pay off £550,000 mortgage
  • Retire at 60 and live off a 4 per cent natural yield
Portfolio type
Investing for growth

Taking advantage of low borrowing costs can be a risky but effective way to boost your portfolio. Stock market returns should, over the long term, outstrip interest rates. However, this can cause short-term problems when interest rates do rise.

This is subscriber only content
Start your trial to keep reading
PRINT AND DIGITAL trial

Get 12 weeks for £12
  • Essential access to the website and app
  • Magazine delivered every week
  • Investment ideas, tools and analysis
Have an account? Sign in