Claims extracted
23
sentences that state something as happening or true
Uncertain
9%
2 of 23 hedged
("reportedly", "may", "according to")
Leaning
not political
takes no side on a contested political question
Publisher signals
61/100
The Sydney Morning Herald's corrections and
hedging, across everything collected from it. Not a measure of accuracy.
Outlets on this story
1
Economy/Business
Same framing elsewhere
1
articles that frame the event the way this one does
Fifty-somethings often feel a long way from retirement.
asserted
somethings → feel → retirement
Currently, they’re generally too busy working, supporting families and managing cost of living pressures.
asserted
they → ’re → pressures
And the decisions they make today can have a profound impact on their lives in 10 or 20 years.
asserted
they → make → years
He is typical of his age group, according to Australian Bureau of Statistics (ABS) data which notes that more than half of the 55-64 demographic is still paying down a home loan.
uncertain
half → accord → loan
Here’s what he wants to know:
asserted
he → ’ → what
“I have about $30 per week I can save.
asserted
I → have → week
My father says to put money away for retirement, by salary sacrificing, saying the tax saving and compounding of super will be the most effective long-term use of this money.
asserted
saving → say → money
But with a $600,000 mortgage, and an interest rate of 6.75 per cent I wonder if an extra $30 per week against the principal is a smarter way to go?
asserted
30 → wonder → principal
Financial Adviser, Nicole Bell from Retirement Essentials agreed to answer Gavin’s question.
asserted
Adviser → agree → question
To do so, she made the following assumptions:
- that super compounds at 7.5 per cent over the period,
- that Gavin’s marginal tax rate is 30 per cent
- he is making minimum mortgage repayments over a loan term of 20 years
So which option delivers a higher net gain?
Option 1: Additional $30 per week mortgage repayments:
asserted
option → do → week
An extra $30 repayment means that Gavin will now pay $1082 ($1052 plus $30) weekly, saving $5255 in interest and reducing his principal by $15,600.
asserted
Gavin → mean → 15,600
This option will reduce Gavin’s net income by $30 per week.
asserted
option → reduce → week
Using a projected compounding rate of 7.5 per cent, the total extra super Gavin will have after 10 years is $28,185.
asserted
Gavin → use → years
This means that the net benefit of the second option, salary sacrifice, delivers $7330 more than the first option, paying extra off the mortgage.
asserted
benefit → mean → mortgage
However, this result is not advice that Gavin should choose salary sacrifice over mortgage repayments.
asserted
Gavin → choose → repayments
His attitude to carrying higher debt is one factor.
asserted
attitude → carry → debt
If he has a mortgage with a redraw facility, he may consider that the extra money in this account provides an accessible financial buffer for unexpected needs – not available if the money is tied up in super, at least until he turns 60.
uncertain
he → have → super
His planned date of retirement is also relevant.
asserted
date → plan → retirement
And if he was partnered, his other half’s financial situation would also need to be considered.
asserted
situation → partner → ?
Nevertheless, it’s always helpful to have some straightforward sums at hand when you have a financial ‘turning point’ decision to make.
asserted
you → ’ → decision
- Advice given in this article is general in nature and is not intended to influence readers’ decisions about investing or financial products.
asserted
Advice → give → investing
They should always seek their own professional advice that takes into account their personal circumstances before making any financial decisions.
asserted
that → seek → decisions
Expert tips on how to save, invest and make the most of your money delivered to your inbox every Sunday.
asserted
tips → save → inbox
The Aporia
