Main-stream knowledge utilized to determine Australians were better paying down their home loans and when financial obligation free switching their focus on accumulating their super. However with interest levels at record lows and several super funds possibly providing an increased price of return, what’s the proper strategy into the economy? AMP’s Technical Strategy Manager John Perri investigates.
It’s the most questions that are common advisers get. Are consumers best off putting money that is extra superannuation or the home loan? Which strategy will off leave them better with time? 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 on your own mortgage loan compared to the price of return on your own super investment. As banking institutions proceed with the RBA’s lead in reducing interest levels, you could find the comes back you can get in your fund that is super are greater. Continue reading “It’s the most common concerns financial advisers get. Are consumers best off putting money that is extra superannuation or perhaps the home loan?”