Repay home withdrawal pillar 2 and repurchase or pay the tax and invest

Investing / Portfolios
1

Hello, I’ve had a windfall and am working through the options to invest. I withdrew 150k for house purchase and have the option when that’s done to put in another 250k. I’m 54.

I’d welcome thoughts on the right way to look at this? Back of a cigarette packet suggests that if I leave it as-is and pay the tax and invest the rest in the market, then depending on the return over around 20 years this pays off vs repayment and repurchase with the tax saving and the usual low return for pillar 2.

Contra is then I would be say early 70s and would only then be in the money benefitting from the investment in the market.

Is this the right way to look at it - ie, it’s essentially a question governed by my age so if I were 35 I might look at it differently? many thanks

2

Spontaneous thought:

  • Leave the windfall (250k) aside
  • Then look at your income (not including the windfall)
  • Does your income cover your expenses and leaves some extra money to invest? If yes, invest the windfall with a 10-20 year horizon. If no, allocate the missing part from the windfall money to cover your expenses and invest the rest with a 10-20 year horizon.
  • Alternatively, think of something that will increase your happiness but that is out of reach with the current income. Allocate the windfall money to pay for this increase in happiness and invest the rest of the windfall money with a 10-20 year horizon.
3

Difficult to evaluate / give an opinion without knowing income, income perspective and networth imo.

Also, please everyone tell me I’m not the only one who’s brain thinks obsessively about some health advice containing pun​:speak_no_evil_monkey::see_no_evil_monkey::weary_cat::speak_no_evil_monkey:

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