My Husband Is After My Super

Scott,

I need your help. I am 31 years old, earning $60,000, and my husband wants me to pull $20,000 out of super (which I can do because of the coronavirus situation) and put it on our mortgage to reduce our interest payments. He is convinced this will make us more money in the long run and that it is better for us to have control of our money rather than a superannuation company. I feel this is risky and do not have much in my super fund as it is. I feel pressured to do this.

Rebecca

Hi Rebecca,

There are a few reasons this sounds whiffy.

First, you should only raid your super as a last resort: if you’re in genuine hardship and you can’t pay your bills.

That doesn’t sound like you.

Second, you don’t want to end up with all your eggs in one basket:

I meet a lot of old people who end up at the end of their life owning their home, but have nothing else to live on. I also meet a lot of older, divorced women who don’t have a home or enough super.

The key to building long-term wealth is to spread your money around: property and shares (through super).

The final thing that stinks is that your husband is pressuring you.

This is your money.

Tell him to back off … but do it over a beer. Take him out on a Barefoot Date Night and show him the steps I lay out in my book: you’ll be making tax-effective super contributions and paying extra off your mortgage in no time!

Scott