3 ms·
An even better strategy is to park you savings as redraw in your debt account (like housing loan), since the interest you are likely to pay on your debt is alwa
by wanderingmind 2y ago
An even better strategy is to park you savings as redraw in your debt account (like housing loan), since the interest you are likely to pay on your debt is always more than the interest you are likely to make on your assets. Further, its completely tax free.
- zbobet2012 2y agoNope, my house loan is 2.3% my liquid savings in FDLXX are about 5%. What you are saying is only true if your debt is incurred at the same time as your savings are accumulated. That's actually rather unlikely.
- wanderingmind 2y agoUS is an outlier with 30 year Fixed mortgage especially during COVID. Now for any new debt its significantly higher across the globe.
- zbobet2012 2y agoYou missed the point. Most people take on debt when it's cheap (low interest) and take on savings when they have high returns (high interest). You save when interest rates are high, you buy when interest rates are low. That interest rates change is global.
- dalmo3 2y agoDoesn't that assume you're always in debt AND the debt is greater than your savings?
- wanderingmind 2y agoYes you need to always have current debt more than current liquid assets (like cash).