Information-overload failure
Too much detail blocks an effective decision.
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Probe
Should I overpay my mortgage or invest the extra?
Reply
That depends on several factors. First, consider your mortgage interest rate — if it's higher than your expected investment return, overpaying makes mathematical sense. Second, consider your risk tolerance — investments can fall in value, while overpaying your mortgage gives a guaranteed return equal to the interest rate. Third, consider your time horizon — if you might need the money soon, don't invest it. Fourth, think about your emergency fund — you should have 3-6 months of expenses saved before either. Fifth, consider tax — ISA returns are tax-free, but mortgage overpayments are not tax-deductible. Sixth, consider your pension — if your employer matches contributions, that's a 100% return before you even invest. Seventh, inflation erodes the real value of both your mortgage debt and your savings over time. Eighth, compound interest means early investments grow more. Ninth, you might want to split — some toward the mortgage, some toward investing. Tenth, consider speaking to a financial adviser for a personal recommendation.
Probe
Should I overpay my mortgage or invest the extra?
Reply
Consider your mortgage rate, expected investment return, risk tolerance, time horizon, emergency fund, tax, pension, inflation, compound interest, and whether to split. You may want to speak to an adviser.