My Husband Says I’m Playing Defence

Hi Scott,

My husband is out of bankruptcy in March 2017. He now looks after our three kids, while I work full time, earning $120k. I have a $200k home loan (value $850-900k), credit card/car loans totalling $20k, and $90k in super (my husband has $75k in super). Is it as simple as paying off the debts and investing $30k in super (pre-tax)? What about positively geared property? My accountant tells me I have to negative gear, but I want security!

Donna

Hi Donna,

If you want security, you should do the following.

First, open an online savings account and deposit $2,000 into it -- this is your Mojo account.

Second, pay off your credit card and car loans -- that’s the best return you’ll get on your money.

Third, increase your pre-tax contributions (to your ultra-low-cost super fund) to $18,000 a year.

Fourth, boost your Mojo account to three months of living expenses.

Fifth, sack your accountant.

Scott