24. Face your longterm demons
‘The best thing about the future is that it comes only one day at a time.’
Although there are some worrying signs about mortgages and pensions in the long term, we don’t have to sit back and wait for financial disaster to strike.
Take the following example. Endowment mortgages are based on the idea that you pay the mortgage lender enough over the term of the loan to cover the interest on the amount you choose to borrow. To pay off the core amount borrowed, you take out an endowment policy, typically from a life assurance company. Your payments are invested in the stock market in the expectation that over a number of years increases in the value of shares will generate a lump sum equal to or higher ...