Going Barefoot

Hi Scott

We have been doing our best to ‘go Barefoot’. My husband and I (aged 58 and 47, with kids aged 7 and 5) have downsized our home, from a $750k mortgage to a $420k one -- and loving it! We also sold our investment prop and pocketed $80k after CGT. Now we have a big decision to make: my hubby will inherit $250k soon and he wants to buy shares (to add to his $200k in super). But I’m thinking we put it on the mortgage. What do you think?

Greg and Tina

Hi Guys,

You should focus on three things: having your Mojo funded, being debt free when you retire, and maxing out your pre-tax super contributions.

So if I were in your shoes, I’d save about $10,000 in a high interest online savings account (Mojo).

Then I’d take the $240,000 and pay it straight off the mortgage. Then I’d increase his pre tax super contributions to the maximum $25,000 each year. You’re doing well. Keep going!

Scott