Mortgage v Super: Where should you invest your extra money?

In a recent Money Editor piece for the Sydney Morning Herald, The Wealth Designers’ Senior Wealth Adviser Dawn Thomas weighed in on where you should invest your extra money.

Is the smartest move to channel your surplus income into their mortgage to maximise their mortgage repayments to pay down their home loan quicker? 

Or is it wise to supercharge their Superannuation to capitalise on the tax benefits and set yourself up for a comfortable retirement?

Dawn is an advocate for boosting your Superannuation wherever possible. According to her, the tax benefits of superannuation are unbeatable.  Making additional contributions to your super fund immediately positively impacts your tax by reducing your taxable income.  Plus, Superannuation earnings are taxed at just 15%, meaning that growth is maximised.  

Dawn cautions, however, that Superannuation funds are locked away, so investors considering boosting their Super should make sure that they first build up an emergency fund. This should ideally be the equivalent of six months’ salary and should be in an offset account that runs alongside their mortgage account.

Read the entire article here: https://www.smh.com.au/money/saving/mortgage-v-super-where-should-you-invest-your-extra-money-20240919-p5kbzt.html