Week 5, Question 2
So it’s “no” to term deposit saving and “yes” to upping our mortgage payments.
Your votes made the decision clear on this one but thanks also to the helpful feedback from Martin, tiktok and JB.
However, Matt’s employer has just thrown a spanner in the works (potentially a nice spanner, though!). He’s starting up a workplace savings scheme and has offered everyone a place in it. The deal is Matt can contribute up to 3% of his gross pay each month and Matt’s employer will match it dollar for dollar.
So that would take care of our surplus (around $2,000), but could be a better option than putting it into a term deposit or even the mortgage? Or maybe this just isn’t the right time for us to be looking at retirement saving?
Martin Hawes will give us his view later this afternoon.
What do you think?
Steph
posted by sortme @ 9:41 AM
1 comments
1 Comments:
Normally I would say go with the savings scheme as basically your earning more on any contributions made (compared to a reduction in interest if you applied that budget surplus to your mortgage)...
However, what are the terms of the scheme?
Is the money invested and hence you're exposed to high(er) risk (i.e. potentially, could you get negative returns with the scheme)?
How long must you be in the scheme before you can withdraw money?
Can you elect to not make payments just in case an emergency crops up?
As your surplus is so low, less than $15 per week, I'm a bit hesitant to say go for it without knowing more information about the scheme...
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