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AVC vs Accelerated Mortgage Repayment

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  • 25-06-2007 10:57pm
    #1
    bzpc26
    Registered Users Posts: 26 ✭


    Hi. I'm paying AVCS and getting around 8-9% yoy return. Upside is tax reflief. Downside is my money is at risk and exposed to markets.

    My mortgage repayments like everyone else are increasing.

    Anyone know what makes more financial sense. To pay off mortgage asap or let the mortgage run and max out AVCs.


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    #2
    Chipboard
    Closed Accounts Posts: 428 ✭✭Chipboard


    IMO max your AVC's. Don't worry about the mortgage, rates have never been more low and stable. People my age (34) or younger dont know what high interest is.

    You get int relief on your mortgage.
    You get tax relief on your pension contributions.
    Your pension contributions grow exponentially (if your fund mgr is any good).
    As long as your mort repay will discharge mort by retire age - your in good shape.

    This is my personal opinion. Remember, they say you should never listen to free advice.


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