Knock Some Sense into My Mum

Hi Scott

I need you to knock some sense into my mum! My parents are both in early 50s, and both have no money in super (they are self-employed and do not pay themselves any). She now says she does not want to “keep paying someone’s else's mortgage”, so they are saving madly for a house. She is looking at houses worth $600,000 with a deposit of 10%, but I am suggesting she should start paying into her super, buy a small house when we all leave the nest, and enjoy her later years (not in debt!). What say you?

Matt

Hi Matt,

You’re making total sense, and you’re totally right -- but that totally doesn’t matter. Your parents don’t want to have their dreams doused by their own son! They are thinking emotionally, while you are thinking mathematically. So take a leaf out of a politicians playbook -- get someone else to deliver the bad news. Arrange for your parents to see an independent financial advisor, who’ll surely tell them the same thing. Then just agree with the advisor.

Scott