Cashing in LSL/AL to invest

Hi guys,

I have a question I’ve been pondering.

Work has a policy of allowing lump sum payments of accrued LSL and AL. I have been contemplating whether to take advantage of this and invest the proceeds into my preferred ETFs/LICs, most likely via DCA over a period.

The leave is approximately 26 weeks and the payment would represent approximately a year of normal savings that we would be putting into the market.

I don’t see any further progression in my current role and salary escalation is typically aligned with EBA staff which is at 3% (what lack of wage growth!).

Letting it compound in ETFs seems like a no brainer as opposed to compounding at a cap of 3% by leaving it with my employer. Something mentally is however holding me back from taking this step.

What are others thoughts?

 

You don't want to take a holiday with your leave? If not I would cash it out for sure.

 

Seems like a very personal decision without a 'right' answer.

Myself I've used all my leave and bought extra in order to enjoy the things I want to do and remind myself what I'm investing for.

 

Sorry, I would leave say 4 weeks for holidays over the next 12 myths and re-accrue from there

 

as other have said it's personal choice. i used my LSL as part of an extension to my paternity leave, so that I could have a year with my son. incalculable Roi.

 

Most people at my work don't use their LSL, I do. I'd never cash it out, but it's a very individual decision.
The reason that I'm staying with my employer is all the leave I get. 21 days AL, 10.9 days LSL, 26 RDOs, plus weekends and public holidays. Where else do you get that?

 

Take a year off on half pay!