Pay off the mortgage or invest? It’s one of those money questions that sounds simple, until you actually start running the numbers.
Tash and Ana unpack the trade-offs between getting ahead on your home loan, keeping money in an offset, investing, making extra super contributions, and using strategies like debt recycling. More importantly, they look at why the “right” answer can depend just as much on your goals and risk tolerance as the maths.
In this episode:
🏠 Why paying down your mortgage and investing don’t have to be an either/or decision
🏠 The trade-offs between a guaranteed saving on mortgage interest and uncertain investment returns
🏠 Why your goals, risk tolerance and need for flexibility matter when deciding what to do with spare cash
🏠 How an offset account can fit into your strategy, and why you should check yours is actually linked to your loan
🏠 What debt recycling is and how it can potentially make some home loan interest tax deductible
🏠 Where extra super contributions could fit into the equation
🏠 Why building an emergency fund may come before deciding whether to invest or pay down more debt
🏠 How Tash and Ana approach the mortgage-versus-investing decision differently in their own lives
The big takeaway? There may not be one perfect answer. Your strategy can change as your income, family, goals and appetite for risk change. The important thing is understanding your options and choosing an approach that makes sense for your own “why.”
Disclaimer:
Any advice is general and does not consider your financial situation needs, or objectives, so consider whether it’s appropriate for you. You should also consider seeking professional advice before making any financial decision.
Tash Invests Pty Ltd is a Corporate Authorised Representative #1317713 of Rask Licensing Pty Ltd. Read the FSG available from https://tashinvests.com/links
Pearler is an Authorised Representative #1281540 of Sanlam Private Wealth Pty Ltd AFSL #337927. Read the FSG available from https://pearler.com/financial-services-guide
If you are considering any of the products we spoke about during the show, be sure to read the Product Disclosure Statement & Target Market Determination available from the product issuer’s website before deciding.
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