Debt reduction strategy
I had this idea and sometimes it just helps to talk it through. So thought I'd ask.
- 46M
- Single no kids, don't see that changing
- 150k in Mortgage - Edit again: PPOR value is about $1.1M
- 40k in offset
- Portfolio 140k
My plan was to FIRE in about 10 years time. Only something I started considering about 18months ago. I don't hate working but had a couple of events that changed my view on my life.
I wasn't sure because it feels a little like I'm just shuffling money from one bucket to another.
Sell out the portfolio, put about 45k into carry forward super. Short of a market going backwards is is the last year I'll be able to do it, as it'll tick over 500k this year, it was just under at the end of last FY (edit: about 480k). 45k is the full amount I can carry forward. Use the rest to pay off/offset mortgage for essentially debt free. Some of this is personal piece of mind. Some of it is guaranteeing a 6% return.
Use my mortgage payments and investments contributions to rebuild portfolio. I'd expect this to be approx $2-4000pm (my income varies). Part of this was to use the CGT discount while still available, I'm not sure how significant it will actually be. I was aiming for $450k+ out side of super.
Any thoughts or suggestions?
Edit: Sorry it was late when I posted. The carry forward as a deduction would at least offset the discounted CGT.