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  • #802
    vitta95
    Participant

    Hi, i am new to investing and i need some help. Is it worth to have cash in my home loan offset account or invest in etfs? Thanks for your help

    #813
    TheHouse
    Participant

    Your home loan offset account is saving you 2-3% depending on your mortgage rate. Money in an etf might earn you 7-10% per annum based historical figures. Nobody can predict the market so if you were to invest right now it might loose 10-30%… or could go up.

    It all comes down to personal risk tolerance. A guaranteed 2-3% return on money in your offset may seem pretty good right now. Especially if you think you may need the money in the short term.

    #815
    vitta95
    Participant

    Your home loan offset account is saving you 2-3% depending on your mortgage rate. Money in an etf might earn you 7-10% per annum based historical figures. Nobody can predict the market so if you were to invest right now it might loose 10-30%… or could go up.
    It all comes down to personal risk tolerance. A guaranteed 2-3% return on money in your offset may seem pretty good right now. Especially if you think you may need the money in the short term.

    Thanks for that, I guess i’m still trying to work out my risk tolerance but it is hard with everything going on in the world. I’m am wanting to work towards FIRE so I known I have to start making some moves and not just playing it safe by keeping my money in the bank.

    #846
    R.D.
    Keymaster

    Your risk tolerance does need to be taken into account as you won’t enjoy your life if you can’t sleep at night. But everyone starts somewhere so maybe start off small. When I first started investing I couldn’t help but check up the price every day, eventually, I changed my view on what I value and now short term fluctuations don’t bother me.

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