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The $1,000 question.

I have a home mortgage and I figure I can set aside an extra $1000 a month. What should I do with that money? Put in onto the mortgage or look at other investment methods?

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Posted by Piper L on 01/05/2014 @ 17:43

Thanks for the question Piper.

You can work towards paying off your mortgage early – but then you have your money locked up in a rich asset but does this mean you have neglected you other needs? And remember – your home does not earn you any income!

Have you built up a cash reserve for emergencies? Have you got a long term wealth creation plan outside of your home?

When you consider this wealth creation strategy you need to spread the wealth over different asset categories – shares being the one that you need to consider as you have all your eggs in the property basket at the moment.

Also, depending on your circumstances – marital status, age and dependent children – you should also be looking to grow your superannuation – there are great tax benefits to be had in doing that, but not at the expense of other more pressing needs.

Posted by Martin Speedie on 02/05/2014 @ 10:09
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