Massive fan of the podcast, listened to the entire thing from beginning to dividEND within only under 2 months! Superb content!
One perhaps 2 questions:
1. If you have a mortgage (which I’m sure most people eventually end up doing) and an offset account, what would you guys consider doing in regards to investing? Do you slog it out and try to make all the repayments and add in lump sums as and when you can and try to pay it all out BEFORE starting to invest? Or do you pay it off as fast as possible as well but also saving a tiny bit for investment purposes? (I suppose something safer like ETFs or Indexes).
The main reason I ask is because I do want to start investing, but a lot of opinions out there weigh towards paying off the mortgage first to avoid the compounding interest you end up paying if you take the entire 20 years to pay the mortgage off..Also I guess I wasn’t that keen on starting investing in 10-15 years AFTER I’ve paid off the mortgage as time in the market is what is important..
If for example I’m paying 4.1% interest on the mortgage, I am wondering if money in a simple ETF like the ASX200 would (hopefully) bring about more returns than 4.1% and hence be better invested in small amounts there instead of sending it all towards the mortgage?
2. If you own ETFs (I have a few), would you prefer to get paid in dividends or to get paid in extra shares? If you get paid in dividends, do you end up having to pay brokerage to redistribute back into those ETFs?
Noobie questions, but then I don’t pretend to be anything but.