#9: What can we do to get ahead financially while interest rates are low?

While paying down your mortgage reduces your debt and helps you work towards owning a significant asset, there may be more appropriate strategies to manage your finances and build your wealth for the long-term.

These strategies may help you get ahead financially while interest rates are low:

Restructuring your debt: There could be significant advantages to refinancing your mortgage to a provider with a lower interest rate or more flexible payment options. You could consider an offset bank account which enables you to offset your mortgage against your savings, potentially saving thousands in interest in the long-term.

Debt recycling: This wealth accumulation strategy involves using an investment loan to invest in income producing assets, with the income earned, used to pay down your mortgage. It’s a continual process where the debt in your mortgage (non-deductible debt) is replaced by debt associated with an investment loan (deductible debt). This strategy can be especially worthwhile during periods of low interest rates and may also have tax advantages.

If you would like further advice about strategies to help you get ahead financially, I encourage you to contact our office on 07 3720 1299 or email admin@wealthfundamentals.com.au

Lane Moses Pty Ltd ABN 56 092 186 117 trading as Wealth Fundamentals and its advisers are Authorised Representatives of Fortnum Private Wealth Ltd ABN 54 139 889 535 AFSL 357306.

This is general advice only and does not take into account your objectives, financial situation or needs, so you should consider whether the advice is relevant to your personal circumstances. You should also read the relevant Product Disclosure Statements (PDS) before making any financial decisions.

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