New Parents Wonder Where To Go Now

We are just wondering what our next best move would be at this stage.

- Paul Clitheroe

I’m 34 and earn $100,000 a year. We currently have a one-year-old baby and my wife (30) is a full-time mum. We have combined super of $160,000 and currently owe $440,000 on our mortgage (two years into repayments) with the house being valued at around $700,000, leaving us $260,000 equity with minimal savings (and no other debt). My wife is looking to go back to work, where she would earn about $70,000pa.

We are just wondering what our next best move would be at this stage. We are looking at the options: buying shares, or should we prioritise the mortgage, or place cash aside for the baby’s future expenses? Would a self-managed super fund be a sensible option? David

Congratulations on the birth of your first child. Enjoy every moment. One of the best pieces of advice I have ever received is that time with the kids goes in a flash. When I was given this advice, Vicki and I had a new baby, a four-year-old and a six-year-old and I thought it was nonsense. But as I recently went to my youngest daughter's graduation from a four-year degree and we look forward to our 30-year-old son's marriage at the end of the year, I realise that the advice I was given was spot on.