It’s one of the more questions that are common advisers get. Are consumers best off putting more money into superannuation or even the home loan?
Mainstream knowledge used to determine Australians were better paying down their mortgage loans and when financial obligation free turning their awareness of accumulating their super. However with interest levels at record lows and several super funds possibly providing an increased price of return, what’s the best strategy into the market? AMP’s Technical Strategy Manager John Perri investigates.
It’s the most typical concerns financial advisers get. Are consumers best off putting extra cash into superannuation or the home loan? Which strategy will leave them best off as time passes? No two people will get the same answer – but there are some rules of thumb you can follow to work out what’s right for you in the super versus mortgage debate.
The one thing to take into account could be the rate of interest in your mortgage loan when compared with the price of return on your own super investment. As banking institutions stick to the RBA’s lead in reducing interest levels, you might find the comes back you can get in your super investment are possibly greater.
Super can also be constructed on compounding interest. Continue reading “It’s one of the more questions that are common advisers get. Are consumers best off putting more money into superannuation or even the home loan?”