Investing: Five things you might want to consider doing right now

22nd August 2011

1) Pay off your mortgage

Interest rates are still pretty low at the moment, so if you can overpay your mortgage do so. While rates are not likely to rise any time soon, inflation continues to overshoot the Bank of England's 2% target. Economists are agreed that it won't be long before the cost of borrowing increases again, plus as a large debt the sooner you pay off your mortgage the less interest you'll pay.


2) Drip feed money into a stockmarket ISA 

One of the biggest dilemmas an investor faces is how to time their purchase, after all even star fund managers can have problems getting their timing right.

One way to avoid this is via pound cost averaging. The website of Morningstar explains this as "the concept of investing money in equal amounts at regular intervals."

Most funds, such as ISA schemes, allowing investors to put a fixed amount in on a monthly basis.

So by investing, say £50 a month you are investing no matter what the market is doing.

This may sound scary but think about it, when the stock market is falling lots of investors pull out. They may gain in the short term but they won't be buying shares when their price bottoms out, so they miss out when the price of those shares goes up.


3) Go for gold, or diamonds.

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