Aussie Firebug

Ask Firebug Fridays - 18


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www.aussiefirebug.com/aff/In Today's episode we chat about:- When to prioritise paying off a mortgage- What Super fund I'm with- High growth vs DividendQuestion (3:52)Hello,I have found a lot of information in regards to paying off a mortgage vs investing. However, I cannot find much to match my circumstances and am hoping you could shed some light.I live with my father and have a very low cost of living. I have an investment property and also invest in Vanguard index funds.If I lived in my property I would prioritise investing in the equity funds over paying extra on the home loan. My question is would there be anything to think differently about if the property is being used to create income as an investment rather than a debt burden if I was living in it? Is there any reason to prioritise paying extra on the mortgage?Thank you,StevenQuestion (11:27)Hey,First of all, thanks for the great content!I wanted to know if you have any posts on super or any advice on what to do with your super account for early retirement? Do you have an SMSF or do you go through a specific super fund? Basically, I want to know what I can do to optimise my super. I live in QLD and I'm with Qsuper.Thanks,JackQuestion (15:20)Hi Aussie Firebug,Thanks for your Great work on the blog and podcast.I wanted to ask about your move to Strategy 3, I think I understand the logic behind it and what you’re looking to achieve.If I can play devil’s advocate, wouldn’t it make more sense to invest in higher growth indexes for now (e.g. US Markets/VTS has massively outperformed ASX/VAS/A200 over the last 10 years even allowing for dividends), as this would grow your net wealth and allow you to achieve FIRE earlier. After that, you could sell VTS/VGS, convert to dividend paying shares and LICs, and live off the passive income?Key point being, while you’re working and not reliant on the dividend income, growth stocks/Index funds would allow you to grow the pie larger and more quickly. Once it’s at a sufficient size where the equivalent value in Aus dividend stocks/index funds would pay enough passive income to live off you would sell and convert right?Cheers and thanks for your time.Rando
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Aussie FirebugBy Aussie Firebug

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