17 Jun 2019

Retirement Savings -Mortgage changes

The last two weeks we've all been sick. DH and I both ended up off work for a week - this latest cold really does knock you about! I'm going back to work today but I certainly don't feel like I'm 100%.

Yesterday I made a change to our retirement funds. They had been in the hostplus Indexed Balanced option and I have now changed them over to the Balanced option. Although the balanced option has higher fees, it is performing better and has a more diversified portfolio. I think that we are headed for difficult times in this country with the re-election of this dreadful government - maybe even a recession? So having a wider range of investments should help to buffer our savings a bit from a downturn.

I have also been reconsidering our extra mortgage payoff progress. Our mortgage is only 4% interest, our retirement savings could be getting 12% (based on last years figures). Financially its a smarter decision to put it in retirement funds than off the mortgage which is already well ahead. What I am thinking of doing is just paying the interest amount as the extra payment each month ( now just over $400) and putting all the extra into retirement savings. So the goals for the year will change a bit as we head into the new financial year.

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