Super vs Mortgage: Which Debt to Tackle First?

0:00It's March 1st in Adelaide, let's get into the news. A common money question is whether to pump extra cash into your superannuation or pay down the mortgage. Take this 33-year-old guy, earning $180,000 a year. His 32-year-old wife just started a business with no income for about two years. They have $630,000 in property debts, including $250,000 on an investment in $380,000 on their home. The combined super sits at $300,000. He's been salary-sacrificing $600 weekly to super-using carry-forward rules. But with 30 years until retirement, he's wondering if that locked away money is too risky versus knocking off debt now. The financial advisor recommends paying down the family home loan first since it's not tax deductible. Life throws curveballs like job loss or kids, so low-deck is flexibility and peace of mind. Their super balances are already strong for their age. They can pause super boosts and revisit catch up contributions later, once total super

1:03hits $500,000. On another note, couples can't merge super accounts into one. But options exist like spouse contributions with up to a $540 tax offset if the lower earner makes under $40,000. Contributions splitting or caching out and re-contributing their retirement can help balance things too. Please chat with an advisor first. Thanks to our sponsor for helping bring you this episode. Comfort you can hear. Sound you can relax into. S-O-L-L-I-SOLYPELLOW.com