I want to break free!
Like the song made famous by the British rock band, Queen, I have finally broken free from the shackles of corporation. It feels good, if not a little frightening!
Anyway, the reason why I chose the title of that famous song is not because of my new found freedom/anxiety, or because I like it, although I do. It is simply because many of you with mortgages may be sitting on a rate starting with a five or even a six. You may be looking at the current rates with a little bit of the green-eyed monster and wanting some of that, but scared of the break costs.
Well, you could be right. After paying the break costs it may well not be worth breaking your contract to go on to a lower rate. Some may tell you that you will make up the break costs paying lower interest. Don’t be caught out; compounding interest on even a small amount can catch up with you. Talk to us to find out if refinancing your mortgage will work for you.
On the flip-side, of course, we have the investors who are having to endure some of the lowest interest rates we have seen since…well, I can’t recall. And as Freddie Mercury sings: “But life still goes on, I can’t get used to livin’ without livin’ without…”
Term deposit rates are currently (at the time writing) around the 3.50%pa mark. Once you deduct tax and inflation, you’re left with a return of around 2.80%pa. For many who have retired and are living off their investments, this may choke them up.
If this is you, and you’re worried about how sustainable living in retirement is going to be, contact us to help you put a plan together. That’s what we do.
Now, back to the vacuuming!
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- Posted by Isbister
- On July 17, 2016