I was advised by a very wealthy friend to borrow the full $1 million and put it into super. The cost of servicing the debt, he said, would be covered by tax-free dividend payments, and the rising value of the super would be free money. He made it sound so simple, and inevitable, perhaps because he had done so well for so long by borrowing to the hilt.
That was 18 months ago. Since then his company has collapsed. He has sold his waterfront mansion. He has left the country, with no plans to return for the foreseeable future. I did not take his advice. I borrowed nothing. Rather than leverage up, I de-leveraged down. I have no debt, no mortgage, not even a car. What I wanted was the ultimate luxury good, something invisible but palpable - peace of mind.