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(
rob, Sun 1 Apr 2001, 1:00)
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For a Life & Pensions company.The brief is just to do a presentation on which is best for an individual to invest in, a pension or a mortgage?
Hence a straight comparson with 5% pa growth for each. Obviously neither of these take place in a vacuum in the real world, but I need to compare and contrast. You can't predict investment growth either, so for the sake of the question I've made them both behave in the same way. Where the outcome becomes different is with tax relief and inflation. I want to do a basic illustration first, followed by then going through the pros and cons of both (taking into account a property's legal fees etc when buying and selling, maintenance costs etc) and hopefully end up demonstrating that pensions are better for people to invest in.
I assume that is what they want to hear.
(, Mon 17 Oct 2011, 22:10, 1 reply, 14 years ago)
I'm sure that's what they want to hearSo surely you need to keep it to a basic calculation.
Again, property maintainence isn't part of the investment - it's an external increment which isn't analogous with pension contributions.
You're probably right in your approach. The pension is an investment impacted only by economic factors. The mortgage is an investment subject to erosion by any number of economic, socio-ecomic and geographic factors.
If you want - the pension is a rock in the Yorkshire Dales. The mortgage is a rock on the Yorkshire Coast.
(Try that line, or something like it. I've come out with worse in the past and got work!)
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The Disappointed Caravanner of the year, Mon 17 Oct 2011, 22:28,
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Property maintenance may not be part of the investment but surely it needs to be factored inin the same way as the annual management charge, amirite?
(, Mon 17 Oct 2011, 22:34, Reply)
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