I have a margin loan that I've let the interest owed on accumulate. The interest accrued offsets my tax. I'm now nearing retirement (within 2 years) and wondering if i should start paying off the interest now and close it by retirement stage. The loan was used to purchase shares and i'd like to keep the shares if possible. Should i pay it off in the next 2 years or wait until post retirement?
As a finance broker I can only give you my opinion. I would suggest that if it is possible you would pay the margin loan off prior to retirement but this would depend heavily on what your current and projected incomes are and your overall financial position and financial goals.
Interest bearing debt is only good if that debt creates income greater than the net interest paid. Keeping the debt just to reduce tax is counter-productive. I would recommend you contact a financial planner on this platform or try Endorphin Wealth in the city
Best of luck
General rule of thumb is to pay off your debts by retirement (or as close as possible).
Given only a couple of years away you should also consider making pre-tax super contributions. There could be more tax benefit in the super contributions and leaving the loan until you retire.
You'd be best placed discussing your options with a professional financial adviser, in person.