When interest rates are high, putting extra money into your offset account can feel like the obvious decision. It reduces the interest on your home loan, keeps your money accessible, and gives you a return that is hard to ignore.
But if you are trying to build wealth over the long term, is the offset always the best place for your money?
In the first episode of our Essentials Series, we revisit one of the most common questions homeowners ask: should extra savings stay in the offset, or could that money be working harder elsewhere?
In this episode, we look at how to weigh up the trade-off between reducing mortgage interest today and investing for growth over time. We also explain why tax, inflation and timeframe can all change the way this decision looks.
If you have extra money available and are unsure whether to leave it in offset or invest it, this episode will help you think through the decision with more clarity and confidence.
Please note: This episode was originally recorded in 2023, so any interest rates or market return figures mentioned reflect the environment at the time of recording.
WANT PERSONALISED ADVICE ON WHAT OPTION IS RIGHT FOR YOU?:
At Guidance Financial Services, we use sophisticated modelling software to test different options for your personal situation and provide advice on investment strategy, based on your goals and circumstances. Book your appointment here.
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