Bury it, invest it, or what?

Last week I wrote a blog about cashing the $10k/$20k of super and that was well received.

This prompted a few queries from clients feeling a little guilty about doing rather well at the moment, especially given a big drop in their discretionary spending. It’s great that they are concerned that many are doing it tough and that they are looking at ways to support their local businesses; equally they need to be doing the best for themselves too.

So, what could you do with those ‘extra’ savings?

Bury it?

This was a suggestion raised. I wouldn’t recommend you do this, or if you do, make sure you send me a map where “x” marks the spot! Seriously though, buried money is likely to be lost and be a bonus in the future for someone unrelated. Let’s move on…  

Invest it?

Also suggested was investing. With shares “on sale”, this could be a good time to invest, remembering that there could be an even better sale down the track before any sustained recovery.  If you can commit to a long-term time frame, additional share investments now may be a good idea.  The best returning periods often start after big market falls – it can be harder emotionally to invest at this point and the journey may be a bit of a roller coaster ride. Remember not to have all your eggs in the one basket. 

Or what?

Another option is debt reduction or tucking it away in your mortgage offset account “just in case”.   Alternatively adding to your super (limits apply) and claiming a tax deduction, may be a good option – just remember it is locked away typically until retirement.

There’s more you could consider, but it really depends on your specific circumstances. 

If you’d like to speak with me about what you could do, or are keen to book a Discovery Meeting please send me an email and we can discuss, bruce@highview.com.au 

Stay safe
Bruce Chisholm
Financial Planner

Authorised Representative No. 1235025 of InterPrac Financial Planning Pty Ltd Licence No. 246638 Highview Wealth Solutions Pty Ltd Trading as Highview Accounting & Financial

Bruce has written his article for general information purposes only and it does not constitute personal advice. This information has been prepared without considering any individual’s objectives, financial situation or needs.  You should not act solely on the basis of material contained in this article.  We recommend that formal advice is sought which considers all your individual objectives and needs.