I am 60 years old, just recently back to work full-time. My wife is 59, and only works one day a week.

We have investment properties bought with an interest-only investment loan.

At the current interest rate, the rent income is cash-flow positive but not much. I am thinking that while the superannuation is currently good, maybe I should withdraw the superannuation to cover the loan.

Are we allowed to withdraw a lumpos sum for our superannuation to repay the investment loan?

What is the catch in doing so?

ANSWER:

Take advice, because to access your super before you're 65 you will need to satisfy a condition of release.

You may have done this if you have recently started a new job.  Remember, the interest on the investment property is tax deductible, which reduces the effective cost to you – I would have thought the superannuation returns would have been much better than the net cost of an investment loan.