Should You Pay Off Your Mortgage or Invest? (A 50-year historical backtest)

A look into the past to assess how often investing has beaten paying off your mortgage. Graphs from the video https://go.novawm.com/MortgageGraphs Financial Planning I am a Chartered Wealth Manager and Partner in a financial planning practice based in the UK. If you would like to find out more about our services, please follow this link: https://go.novawm.com/getintouch Capital at risk. Past performance is used as a guide only. It is no guarantee of future returns. Different funds and asset classes carry varying levels of risk depending on the geographical region and industry sector. You should make yourself aware of these specific risks prior to investing. Mortgage rates and eligibility are dependent on your personal circumstances. With interest only mortgages there is a chance that the repayment vehicle you have in place won't perform as well as you hoped, leaving you unable to afford the lump sum. In this case, you may need to sell your home or find another way to pay off the balance. Prevailing tax rates and reliefs are dependent on your individual circumstances and are subject to change. We do not provide tax advice. Any examples used in the video are for illustrative purposes only and you may get less back than the figures shown. This video does not constitute personal advice. We do not take any responsibility for third party websites and content we may link to from this video. Issued on behalf of Nova. Nova is a trading name of Nova Wealth Ltd, which is authorised and regulated by the Financial Conduct Authority (FRN: 778951) and is a limited company registered in England & Wales (10739796). James Shack™ property of James Shackell Copyright © James Shackell 2024. All rights reserved. The author asserts their moral right under the Copyright, Designs and Patents Act 1988 to be identified as the author of this channel and any video published on it. 00:00 The Problem with Averages 02:24 Tom & His Question 04:07 Historical Market Data 05:24 How the Test Works 07:13 ISA Results 09:24 Different Mortgage Sizes 09:47 Pension Results 12:28 Pension +1 13:34 Different Time Periods 14:27 60% Stocks 40% Bonds 16:31 Key Considerations 19:26 Why this was not for Tom