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  1. U

    ING at 4% or IP offset at 5.38%?

    One alternative strategy would be to invest extra funds in high-dividend yield shares with full/high franking credits (depending on your risk appetite). You will preserve tax deductibility on the IP loan interest, and with the franking credits your dividends will effectively be subject to...
  2. U

    ING at 4% or IP offset at 5.38%?

    I think you meant to say: Whereas if you put $100,000 in your IP offset where you pay 5.38% interest, you will save/avoid $5380 (less 38.5%) in interest.
  3. U

    ING at 4% or IP offset at 5.38%?

    sorry some of my comment relates to those who focus too much on tax deductions instead of the net cash flows. can you not set up a separate offset account for your holiday savings? ask your lender. or just keep a spreadsheet of your finances and update it weekly so you know you exact...
  4. U

    ING at 4% or IP offset at 5.38%?

    It amazes me when people are willing to lose lots more money just to save tax. Especially when their NG gamble has no guarantee they will get huge CG at the end. Too much of a gamble IMO.
  5. U

    ING at 4% or IP offset at 5.38%?

    why put your holiday money in the lower after-tax cashflow option when you can put it in offset?
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