Overpay mortgage or buy silver/gold

M

mr-dead

Member
I'm having a run of good luck at work at the moment having recently got a promotion and looking likely that ill be getting another promotion shortly too with another pay rise. Been with the company a long time - 19 years and counting.

Im 36 and purchased my own property 8 years ago with 16 years to go with a current balance of 58k.

Now im a little older and wiser I don't want to end up wasting the extra cash or just get used to spending the extra every month so im split between either overpaying on the mortgage every month paying it off in around 6 years or putting all the extra cash into gold/silver hoping for a nice value increase aiming to pay the mortgage off even quicker.

So whats everyone's opinion on the best way forward?
 
I would see an actual financial adviser who can give you professional advice with the clarity of seeing all of your financial situation on paper, rather than relying on the advice from random people on the internet who have a precious metal bias and have no stake (other than personal ego) in your financial well being and outcome.

Call me crazy...
 
Before deciding, check with your with your lender to see what penalties you incur if you pay off your mortgage early. Some mortgages charge a heavy penalty for early payoff. If you have no such penalties or they are negligible to you, then decide if you want to pay off, split the difference or go fully into PM's.

Auspm also makes a good point about the financial adviser but also keep in mind that an advisor is trained and educated with a paper mindset. He also doesn't get a commission for telling you to go buy gold and silver on your own. His job is to sell portfolios. When picking an advisor, do your research well and find and outfit with an above average success rating and high customer satisfaction scores.
 
auspm said:
I would see an actual financial adviser who can give you professional advice with the clarity of seeing all of your financial situation on paper, rather than relying on the advice from random people on the internet who have a precious metal bias and have no stake (other than personal ego) in your financial well being and outcome.

Call me crazy...
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IMHO:

financial adviser = random person with no stake (other than personal ego) in your financial well being and outcome.
 
Financial advisers are a joke. While I don't suggest taking advice from strangers on the internet, their advice often makes more sense than a 'professional' financial adviser.

My wife is an accountant, and her previous employer wanted her to become a financial adviser. Despite having all the UNI degrees and qualifications she didn't know how new money was created. The financial advice industry is there to direct you toward certain products.

Be your own financial adviser, make your own decisions, do your own research. Yes, you may make mistakes along the way, but you will learn and grow from them.
 
willrocks said:
Financial advisers are a joke. While I don't suggest taking advice from strangers on the internet, their advice often makes more sense than a 'professional' financial adviser.

My wife is an accountant, and her previous employer wanted her to become a financial adviser. Despite having all the UNI degrees and qualifications she didn't know how new money was created. The financial advice industry is there to direct you toward certain products.

Be your own financial adviser, make your own decisions, do your own research. Yes, you may make mistakes along the way, but you will learn and grow from them.
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+1 from me
+1 from my wife
 
Wealth advisors (in Australia) always say the same thing.
10 -20% in 5-10 stocks. bHP, Woolies, RioTinto etc. I think most ppl are capable of doing that themselves rather than pay someone. slow way to get rich. Still has risk.

I'd go 40% Au, 40% Ag & 20% fiat buffer in case you break a leg (but looking for bargains)
 
I wish I never met my ex financial advisor (referred to me by my accountant) the biggest financial stuff up and loss I ever made was due to his proffessional costly advise.

If in this economic climate the goal is to have
1. No debt
2. hold pm's

I would do as cojo suggested 50/50. When spot is down, buy pm's in the dips,
other times when spot goes up, put that months money into the mortgage.

But do your own research and goodluck :)

p.s think of the interest on that mortgage over the years you would save !
 
wrcmad said:
Bart said:
Stack,, and wait for the hyperinflations to clear your mortgage.
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^^^This, if you think hyperflation is going to happen.
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Risk of course is that the central banks will (in their infinite wisdom) jack up interest rapidly at the start of a high inflation period, but it takes time for your income (rental incomes, dividends etc) to flow through. Hence, if you can't bear a +5% overnight interest rate increase on today's income then I'd probably (a) fix your interest rate for a few years and stack PM's or (b) prioritise paying off the mortgage down to a sustainable point. Remember, cash flow is king.
 
True ^

I have read that mortgage payments have been reset after a major bout of inflation or hyperinflation. Some people thinking they can stack away some gold coins and pay off their mortgage after hyperinflation hits may be in for a rude awakening as those mortgages will be recalibrated for the inflation.

Just something else to consider .
 
wrcmad said:
auspm said:
I would see an actual financial adviser who can give you professional advice with the clarity of seeing all of your financial situation on paper, rather than relying on the advice from random people on the internet who have a precious metal bias and have no stake (other than personal ego) in your financial well being and outcome.

Call me crazy...
Click to expand...

IMHO:

financial adviser = random person with no stake (other than personal ego) in your financial well being and outcome.
Click to expand...

Yes, but at least they can be held liable if they make an error.

Asking random people on the internet how to manage your finances?

0.o

I've seen some incredibly stupid 'advice' parsed on this forum to genuinely naive people in the past (and even present) born nothing more than from 'well it worked for me' and even worse... looking for the next sucker to offload onto.

Sorry, whilst I personally don't use a financial investor myself, I would consider it leaps and bounds above asking random people you don't know on the internet with absolutely no financial accreditation beyond 'cause I said so'.

How many SS members are here simply because someone told them 'silver was a good idea' or simply because of the $40 market move in recent times?

Make absolutely no mistake, there's as much 'stupid money' here as there is anywhere else in the markets and I don't assume the advice dolled out here is any better simply because they have a little Ag/Au in their portfolio as well.

No offense intended.
 
auspm said:
Yes, but at least they can be held liable if they make an error.
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I find this hard to believe. What errors are financial advisers liable for?

I've seen professional qualified financial advisers who've sent people bankrupt due to poor advice.
 
willrocks said:
auspm said:
Yes, but at least they can be held liable if they make an error.
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I find this hard to believe. What errors are financial advisers liable for?

I've seen professional qualified financial advisers who've sent people bankrupt due to poor advice.
Click to expand...
+1
 
auspm said:
Asking random people on the internet how to manage your finances?
Click to expand...

I would hazard that getting the random opinions of multiple people from the Stackers website is a benefit precisely because you are generally getting a wide range of opinions than from a single individual. As with the advice from an "expert" you still have to sift to find the nuggets that suit you but unlike a single expert you are more likely to hear counter arguments/theories/opinions rather than a disclaimer saying you should have done this before taking the expert's advice.

Although all websites have a natural bias in terms of the types of people who post I've found that SS has a fairly broad mix because it brings together a wider range of interests/experiences.

[Edit: But I agree fully that sometimes you simply end up with completely stupid advice and that many experts do actually have stuff that is worth listening to.]
 
You have obviously posted to get ideas from other people to assist with your own decisions.

What I have generally tried to do over time is split any pay greater than my "living expenses" into four portions ...

- one portion to pay down my mortgage (it has always been a priority for me to get my mortgage down quickly to a manageable level)
- one portion into a home loan interest saver account (which acts as a cash buffer for either opportunities or shtf, whilst allowing the interest payments on my mortgage to be reduced);
- one portion into precious metals (or other investments);
- one portion into having fun and experiences now in life (the above three are useless when you end up in a coffin).

The portions have varied over time as priorities have changed. Initially a greater proportion went into the mortgage, and then into other investments, and now into gold and silver (a reflection of the rock bottom trust I have in the current political and monetary climate).

And always remember, there is no correct answer ... and you can always change your mind tomorrow, as you gain further information.

Good luck
 
bordsilver said:
auspm said:
Asking random people on the internet how to manage your finances?
Click to expand...

I would hazard that getting the random opinions of multiple people from the Stackers website is a benefit precisely because you are generally getting a wide range of opinions than from a single individual. As with the advice from an "expert" you still have to sift to find the nuggets that suit you but unlike a single expert you are more likely to hear counter arguments/theories/opinions rather than a disclaimer saying you should have done this before taking the expert's advice.

Although all websites have a natural bias in terms of the types of people who post I've found that SS has a fairly broad mix because it brings together a wider range of interests/experiences.

[Edit: But I agree fully that sometimes you simply end up with completely stupid advice and that many experts do actually have stuff that is worth listening to.]
Click to expand...


I will guarantee you without a shadow of a doubt, no matter how 'sound' a nugget of information might be idealistically or economically speaking, if you put the idea on the table in a crowded room you are guaranteed someone will take a huge crap on it.

SS has pages and pages of threads displaying that exact same thing over and over and over again.

Look, at the end of the day you can ask all and sundry for advice and there's honestly no harm in getting people's opinions on anything - as long as you treat it purely as opinion.

What is of far greater concern is that people will invariably treat advice here as gospel and make personal investment and finance decisions based upon it.

You need to think for yourself.

Getting advice is great and all, but at the end of the day your financial well being is your responsibility and whilst there's definitely some sage advice given on these hallowed pages, there's an awful lot of crap as well.

Caveat Emptor on financial advice here or on any public forum.

I've seen some great folks with common sense advice on SS for sure, but there's been a lot of sharks circling here too looking for easy prey... and I think many of you will know what I'm talking about.
 
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