Whilst lawyers are not permitted to provide financial advice, clients BE AWARE, the words “We’re here to help” from any of your Lenders may actually be lining the pockets of the advertiser.
Many of us will have thought about the offers to defer mortgage payments or credit-card payments. Think more, get advice and only do it if you have no alternative. The reason: the interest and fees are continuing and the lenders receive interest on interest. That is COMPOUNDING.
Equally important an issue, is the ability to potentially dip into your retirement savings as a result of losing your employment due to the coronavirus crisis. This should be an absolute last resort and believe it or not that is the message your Super Funds are doing their best to spread. Speak to an expert and you will have it explained how losses will be crystallised if you withdraw the allowable $10,000.00 or $20,000.00 from your Superannuation at the bottom of the market and what’s more, the younger you are, in the same way as lenders receive interest on interest in the above example, the greater your losses are to your retirement savings.
We have all seen “panic” in action. Think toilet paper. Should a majority withdraw cash from their Superannuation and some 456,000 have been approved to do so since the scheme opened on 20th April, 2020, or switch growth shares to cash, then it is highly likely that everyone will suffer.
Long term thinking is the way forward and a little less selfishness please.
This article is intended only to provide a summary of the subject matter covered. It does not purport to be comprehensive or to render legal advice. No reader should act on the basis of any matter contained in this article without first obtaining specific professional advice.
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