Frequently Asked Questions

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Should I start salary sacrificing into Super or pay off my mortgage?

This is a common question, especially right now with interest rates where they are.

The answer is very much a personal one, and depends on a few factors like; comfort in holding debt, taxable income, appetite for investment risk and investment timeframe.

As an example, if you are comfortable with holding debt, you are positioned in one of the higher tax brackets and you have an investment timeframe of 10 years or less until you can access your Super, then there may be support for the investing path.

However, if any of these factors has a NO answer, then the investing path may not be the best option for you and we should have a chat sometime.

How can I repay my mortgage faster beyond just making extra repayments?

Depending on your situation, preferences and banking provider; you may be able to start considering a debt recycling strategy that swaps tax non-deductible debt for tax deductible debt, and without taking on more borrowings. It's a way to boost wealth through tax efficiencies and there is a level of complexity so make sure you sit down with a professional mortgage broker, tax accountant and a financial planner that works in this space.

I have some money that I'd like to invest, is now a good time to get into the market?

This is a great question.

There's an old investment saying when it comes to trying to time getting in and out of the market, and it goes along the lines of trying to catch a falling knife. If can be done but, you'll run the risk of taking a bad position which will provide some pain.

Long term, these failed timings become less impactful but, it's still a consideration.

The point I'm making here, is there is no good or bad time to get into the market if you have a long term strategy.

If you're anxious about losing capital in the short-term, try staggering your investment approach eg. split the total into smaller alloments and invest on a regular basis over a longer period of time. This is often referred to as DCA (Dollar Cost Averaging) and it has proven to provide better returns over the long term as it smooths out the good and bad entry prices.

If you want to learn more, reach out to me and we can chat.

At what point should I seek financial advice?

Great question, and just by asking it you're on the right path.

You can seek financial advice at any point in time but, some key trigger points are starting a new job, buying a house, receiving a windfall like a bonus or inheritance, the birth of a child, or considering retirement.

The main point in any of these situations is to seek advice early, rather than wait to the last minute. The more time you have to plan, the less profound any changes need to be.

How much does financial advice cost?

This is a very open question because it really depends on the complexity of the advice and which professionals are involved.

For a very simple advice solution a ballpark figure may be somewhere around A$2,000. On the other end of the spectrum, it could cost north of A$6,000; especially when considering the involvement of financial advisers, accountants and solicitors.