Aussie FIRE | Financial Independence Retire Early 61. Q&A: Debt recycling
Feb 13, 2026
They dig into debt recycling mechanics, tax timing and common pitfalls. You’ll hear clear takes on market vs limit orders and when each is useful. They debate saving to a recycle threshold versus investing now and practical ways to DCA while recycling. The conversation covers redraw timing, preserving deductibility, and simple workarounds to manage cash and loans.
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Prefer Market Orders For Liquid ETFs
- Use market orders for high-liquidity ETFs and large shares to avoid missed fills and simplify execution.
- Use limit orders only for low-liquidity assets or when you deliberately want to cap price on volatile, unusual days.
Limit Orders Can Be Behavioral Traps
- Limit orders often act as a bet and create decision friction that rarely improves long-term results for casual investors.
- Automating purchases removes behavioural barriers and prevents analysis paralysis over small price differences.
Calculate Opportunity Cost Versus Offset Rate
- Compare expected market return to offset interest to estimate opportunity cost of delaying investment; use a long-term average (e.g. market 8% vs offset 5%).
- Multiply the net drag by the average invested amount over the delay to estimate annual cost of waiting to debt recycle.