“I generally avoid temptation unless I can’t resist it.” – Mae West
As most of us know the government has allowed us early access of up to $20,000 from our super in a prescribed set of circumstances. Hmmm, tempting.
I’ve had a series of questions about whether or not it’s a good idea.
There’s no clear cut answer here, it’ll come to your own set of circumstances, but the question you need to ask yourself is whether you need a smaller amount now, or a larger amount later. It’s as simple as that.
Please remember need, not want.
Yes, it’s your money, yes it’d be way more fun to spend $10k now, but there’s a reason it’s locked up until retirement. That’s likely going to be the time that we actually need it.
The graph shows what happens to $10,000 and $20,000 left invested at 7%pa through to age 65.