Money magazine Comments - Ask Paul: Can we cash out super to pay down the mortgage?

Comment by Lynneo Clark ()

Lynneo Clark () — Wed, 02 Dec 2020 17:07:41 +1100

60 years old and a mortgage $450,000+! Man, my advice would be to sell that anchor around your neck and get out of debt before even thinking about traveling! And adding more debt with an investment property is sort of crazy?

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Comment by Celi Drake ()

Celi Drake () — Wed, 02 Dec 2020 17:40:14 +1100

Oh I agree with Lynneo - sell that Anchor : ) live simply. That debt at that age is a nightmare

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Comment by Graham Paull ()

Graham Paull () — Thu, 03 Dec 2020 09:38:47 +1100

A few percent interest on a mortgage is not an anchor however 8 or 10% would be an anchor .

if you do pay off some of the mortgage that money is no longer being actively invested in fact it's a waste.

if you can't get an average of around 7% return on a super fund you need to change your SuperFund.

your property will still be appreciating regardless of whether the debt is paid off or not. What difference is it going to make if you pay the debt down now or in 5 or 10 years time?

If a property is appreciating more than the interest rate then you will always be a head.

If I had a million-dollar dead and was 2% ahead of growth of my mortgage rate that would be an additional $20,000 a year.

How many people would love to have that anchor?

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Comment by Kim Davis ()

Kim Davis () — Sat, 05 Dec 2020 07:43:52 +1100

I would love that anchor. Beats renting and possibility of homelessness after retirement after working all your life. I'm 55, single with a new 570K Sydney mortgage and 200K in super. Thanks for your comment Graham.

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Comment by Charlie G ()

Charlie G () — Wed, 16 Dec 2020 13:15:21 +1100

Hi Paul,

My wife and I just pay off our home. We are 50 and now are planning on focusing on our super. We both have separate super funds, both with Australian super, and currently have a combine super of $700000.

What I understand and correct me if I am wrong but all Australian strong investment seem to be mining and the banks. But banks are heavily investing in property and our relationship with China has gone south.

Should I still leave our money in Balanced or should I just invest in international shares, the the thinking that there will be a fast market recovery then leaving our funds exposed to the Australian market.

Kind Regards

Charlie

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