SBS News consulted two financial specialists to explore the advantages and disadvantages of various financial strategies, aiming to help you maximize any extra funds during the festive season.

For those just starting out, experts suggest diversifying your investments is key to gaining a solid footing in the financial world.

“The stock market is highly volatile. Just this year, we’ve witnessed instances where the ASX200 has swung by 2 or 3 percent in a single day due to unexpected policy changes or international developments,” one expert noted.

They also emphasized, “The tax incentives are considerable, and regular contributions can lead to significant wealth accumulation over time.”

However, there are drawbacks: “The downside is that these funds are inaccessible until retirement,” they added.

Gupta highlighted that directing extra cash towards mortgage payments could be more advantageous than contributing to superannuation, explaining that “the return is assured by the interest saved.”

“Downside: funds are locked until retirement.”

Paying down your mortgage

Gupta said putting cash towards your mortgage repayments can be a better option than superannuation contributions, because “the return is guaranteed through interest saved”.

“Extra super grows wealth. Extra mortgage payments grow certainty. Blending both works for many people.”

Other forms of investing

— Alternative investments: Private equity, commodities like gold, and cryptocurrencies such as Bitcoin. These can offer further diversification but are complex and carry unique risks.