Couple should pay off home debt for better cash flow
A couple, aged 55 and 57, is planning for retirement with low superannuation savings but four investment properties. They earn $51,500 annually, and their properties generate $1,500 monthly after expenses. They have $160,000 and $435,000 in super, along with $455,000 in savings. Their debts include $294,000 on their home and $490,000 on the properties. To improve retirement income, they could use savings to pay off their home debt. This would increase cash flow from rental properties, providing a better financial foundation for retirement.