In this update we address a top question that we get asked by people in their 40’s, 50’s and beyond…
What should I do? Should I contribute money to my mortgage or pay off my superannuation?
We’ve prepared a video to give you a brief insight into some of the factors you should consider when weighing up this important question.
https://www.youtube-nocookie.com/embed/-akezeFopnY
VIDEO TRANSCRIPT:
One of the questions we get asked most by people in their 40s and 50s is whether they should pay off their mortgage first or focus on their super and retirement, and one of the main themes that people come to us with is that it’s always best to pay off their mortgage.
Unfortunately, that’s not always true and it’s not always the case that people should pay of their mortgage first because people’s situations are different and it’s a little bit more complicated than that.
So when your mortgage isn’t your only debt or your superannuation isn’t your only investment things might not be so straight forward.
So as an example if you’ve got bad debt such as credit cards or personal loans or other investments such as an investment property, the more assets and liabilities we have, the more complicated things can be.
So you’re probably thinking “am I alone?”
Well no, lots of people have complex situations and it’s about how you wade through all that information.
So some of the financial questions you might be asking are:
- “How I best structure myself for retirement?”
- “How do I minimise my tax each year?”
- “What’s the best structure to save interest on my mortgage?”
- “What government benefits am I entitled to in retirement?”
So all of these are great questions and they all need to be answered.
Now, the interesting news is that there is no hard and fast rule for everyone.
Everyone’s situation is different and it takes a bit of time to work through what’s the best approach for you.
3 factors to consider when deciding over retirement savings or paying off your mortgage quicker are:
- When you want to retire
- How much you need in retirement
- How much you have now to put away
So not only do a lot of people find managing their finances quite challenging, but there are also other things to take into account like changes in legislation, changing governments, all of these things can have an impact.
So just when you feel like you’re getting in control of things, the goal posts are moved so with all of this to take into account, why not sit down with a professional to look at your personal situation to get some personal advice.
To gain more clarity around your finances you can book in a time to have a quick chat with one of our advisers today by clicking this link.
