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  1. #11
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    Quote Originally Posted by Acadaca View Post
    You don't lose it unless you sell. In the meantime the growth you will see in your invested account will far outstrip the loss you will take keeping it in a bank account. Between now in your say 30s and when you access your super in your 70s you'll have made lots of gains and will be able to weather a downturn in the market.
    but what happens in stock market crashes is that your super fund (which is managed by financial advisors) sell stocks and assets that the super fund owns, and the capital value of your account goes down.

    People can and often do lose money in their super from stock market crashes.


    Whether you are better off putting your money into super or pay off your mortgage is a decision that can only be made assessing your own individual circumstances.

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    I don't believe in super either. By the time we retire they will have changed retiring rules etc. if you access your super early you are taxed heavy. No point. I would rather pay our mortgage off, money in bank or buy our own shares/investments.

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    Quote Originally Posted by BH-KatiesMum View Post
    but what happens in stock market crashes is that your super fund (which is managed by financial advisors) sell stocks and assets that the super fund owns, and the capital value of your account goes down.

    People can and often do lose money in their super from stock market crashes.


    Whether you are better off putting your money into super or pay off your mortgage is a decision that can only be made assessing your own individual circumstances.
    After doing a lot of research I really doubt it's in anybody's best interest to not put money into super in place of putting extra into your home loan. Of course put extra money in your home loan but not at the expense of super. The Noel Whittaker article linked above is really a good reference for the benefits of super. I feel worried for women who will have no super to retire to as it will be very hard in retirement, especially once huge changes are made to the aged pension once all the compulsory super kids come of age.

    Just my opinion of course.

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    Quote Originally Posted by A-Squared View Post
    I just ran your $500 extra repayments idea through a mortgage calculator and at $20 extra a fortnight ($500 a year) on a $600,000 mortgage you'll save yourself 10 months worth of repayments and $18,114 over the life of the loan. Or $603.80 per year so you would have made $103.80 on top of the $500 a year you would have saved/invested in your loan.

    Increase it to $30 a fortnight you're saving $26,668 and 14 months off your loan.
    You're assuming we have a mortgage.... we don't. And won't for afew years yet (by that stage I'll be back at work and my employer will be making contributions, so yes any extra money will go into the mortgage)

    Quote Originally Posted by HappyBovine View Post
    OP at home now so I can give a better answer.

    If you are a SAHM and you put money into your Super fund (from your DH's salary) he will be entitled to a tax rebate of up to $540. That's money in your pocket now for topping up your super. If you were really disciplined and could afford it, you could even put that $540 rebate into super as well:

    https://www.ato.gov.au/Individuals/T...f-your-spouse/

    In terms of the putting money into the mortgage vs super, have a read of Noel Whittaker:

    http://www.smh.com.au/money/investin...914-15a23.html

    http://www.moneymanager.com.au/money/blog/ask-an-expert
    You're assuming my hubby has a salary.. he is a uni student and only works afew hours a week. But thanks for the links :-)

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    I'm VERY pro adding to your super. But if your hubby is a student and you don't have a mortgage yet, but are planning on buying one, I would put the money into a bonus saved account and add to it each month. Then use the money for your deposit. It might help you avoid mortgage insurance. It will definitely help with your loan. Though adding enough to keep the insurance valid could be a good idea.

    I add a lot to my super, 12k a year on top of what my employer puts in. Because the money isn't taxed it's automatically 25%(ish) more.

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    Quote Originally Posted by Wise Enough View Post
    I'm VERY pro adding to your super. But if your hubby is a student and you don't have a mortgage yet, but are planning on buying one, I would put the money into a bonus saved account and add to it each month. Then use the money for your deposit. It might help you avoid mortgage insurance. It will definitely help with your loan. Though adding enough to keep the insurance valid could be a good idea.

    I add a lot to my super, 12k a year on top of what my employer puts in. Because the money isn't taxed it's automatically 25%(ish) more.
    Agree entirely.

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    Question for those who may know. As the have raised the age that we will be eligible for the aged pension, does this affect the age you can access your super fund as well? By the time I reach old age what if the pension age has been raised again to 72 etc. is that the age I can access my super? Or does super remain at 65 years?

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    As part of my work contract I must contribute 5% of my income to super. I started in my early 20's and yes I would lived to have had access to that money whilst saving ( then paying ) off our mortgage I'm also grateful for the rule.
    Just 5% a week compounded will make a huge difference in the end.

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    Quote Originally Posted by goldencrumble View Post
    Question for those who may know. As the have raised the age that we will be eligible for the aged pension, does this affect the age you can access your super fund as well? By the time I reach old age what if the pension age has been raised again to 72 etc. is that the age I can access my super? Or does super remain at 65 years?
    You can access it earlier but get taxed. If you are born in the 80s or later I wouldn't plan on accessing it until you are 75. That may mean for some people that they need to plan a less physical career in their later years which is sad and difficult for some.

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    Default Super - extra contributions

    Quote Originally Posted by blissfulfairy View Post
    You're assuming we have a mortgage.... we don't. And won't for afew years yet (by that stage I'll be back at work and my employer will be making contributions, so yes any extra money will go into the mortgage)
    You're right, I did make an assumption, sorry. But that leads me to think then that surely then that money is best put into a deposit so you can buy sooner (pay less rent / someone else's mortgage) and avoid paying thousands of dollars in mortgage insurance if you have to borrow over 80% of the loan.

    Either way though there are many different options and the fact you're looking to put away your money in some way shape or form is always going to help you financially in the future.

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