We understand it’s easy to get overwhelmed about your finances but talking to a financial planner is just the first step in creating your financial freedom. In this latest QandA with Steve, we talk about some of the questions we receive from people so you can understand how financial advice could help you.
This is a great question! Purchasing a property is a big step and what most people forget is that it’s usually a 30-year loan. Meaning if you take out a mortgage at age 35, you won’t pay it off until you’re 65! If you only make the minimum repayments, the amount of interest you pay over the 30-year term is sky high!
By putting money away into superannuation, you are technically locking it away until you can access it at retirement time. In my opinion, it might sound like a good idea of forced savings within super, but when you’re young, it’s best to try to make additional repayments off your mortgage as a priority. Even a few extra dollars here and there can significantly reduce the term of your loan, and in turn, the interest you pay.
At this time of your life, you will have many changes in your circumstances and expenses in the coming years, especially if you decide to have children. It’s best to keep your money accessible, whilst working best for you now by reducing interest on your loan. You can reassess your additional superannuation contributions in 10 – 15 years’ time when retirement is more on your radar (and hopefully your mortgage will be less).
The above is general information for professional financial advice specific to you you can book an appointment here.