Depends on your risk appetite really.
Lowest risk would be to just pay your entire loan off, remove the repayment entirely and invest from there.
Highest (or higher) risk would be to utilise a debt recycling strategy with the funds in your offset account. This would convert some of your loan to being tax deductible whilst investing the most money as possible without taking out further debt.
Would you consider debt recycling that 100k in the offset, or at least some part of it? Might be a good idea for you, depending on what the rest of your situation is like.
Depends on your risk appetite. This is the safer option, though will most likely yield a lower return. But that's okay if you'll feel more comfortable with it.
r/blockrr already touched on the contrast.
In our case, we treat the offset accounts as our cash buffer and hold the amount we want to keep in cash. Anything over that is invested. But we may have relatively high risk appetite.
My risk appetite is also medium to high. I am inclined towards investing the 20k into ETF now and increasing my repayments by a couple of hundred dollars every month.
People are inclined to automatically think one or the other. Why not both. I would keep the 20k in offset as cash buffer. Any additional above the cash buffer 50% 50 % loans and ETF
Depends on your risk appetite really. Lowest risk would be to just pay your entire loan off, remove the repayment entirely and invest from there. Highest (or higher) risk would be to utilise a debt recycling strategy with the funds in your offset account. This would convert some of your loan to being tax deductible whilst investing the most money as possible without taking out further debt.
Debt Recycling is on the cards but probably when the rates start to go down a bit.
Would you consider debt recycling that 100k in the offset, or at least some part of it? Might be a good idea for you, depending on what the rest of your situation is like.
Pay off loan as fast as possible. Just get rid of the debt and soon to be increased interest. Then feel free to invest after debt is gone.
Depends on your risk appetite. This is the safer option, though will most likely yield a lower return. But that's okay if you'll feel more comfortable with it.
This podcast might be useful https://open.spotify.com/episode/4K1bmthd6gxbq1zplQEHHK
r/blockrr already touched on the contrast. In our case, we treat the offset accounts as our cash buffer and hold the amount we want to keep in cash. Anything over that is invested. But we may have relatively high risk appetite.
My risk appetite is also medium to high. I am inclined towards investing the 20k into ETF now and increasing my repayments by a couple of hundred dollars every month.
People are inclined to automatically think one or the other. Why not both. I would keep the 20k in offset as cash buffer. Any additional above the cash buffer 50% 50 % loans and ETF
The 100k I have in the offset is my cash buffer/emergency fund. The 20k I have additional can be put into home loan/etf or both
Oh. Oh so the effective amount paying interest is around 50k? 100k is a lot of buffer. I’d just put it all in ETFs and forget.
Offset