If you have a personal homeloan (ignoring IP's for now) are you pumping every spare dollar into reducing that debt, or are you putting some of it into other investments (e.g. managed funds etc) as retrement savings?

I'm interested in what other forumites are doing and why.Personally, I'm working hard on my homeloan because the cost of that is higher than the benefit of most retirement schemes. However I recognise that starting early with some kind of retirement savings is good for building it up (the compound benefit), and I'm wary of having all my investments in property.

So, for those who have made a concious decision to pay off the home loan first, or are also working on some non-property investments at the same time, why have you decided to go down these paths?

Option 2. With compounding interest and a tax preferred investment strategy you can pay off your home loan faster then if you were paying a little bit more every month. Of course you need a decent amount of cash compounding interest. Just remember the interest on your home loan is tax deductible. Calculate what you're getting back from Uncle Sam and re-invest that into your investments (mutual funds, etc....) and you'll see with all the interest compounding you'll have plenty of money to pay off your mortgage faster.