Premium Finance Stories

Hello all, this is Lynette from Premium Finance Services. I guess it was only a matter of time until the Government changed the retirement age to over 65 yrs. We are an aging population so there wouldn’t have been many choices available to them. Being a Baby Boomer I am running out of “steam” now, so how am I going to go working full-time for the next 15 years or so. I don’t think so !!!! There has to be a better way and there IS !! We make a plan !

I had clients in during the week that were similar ages to myself and they had a major problem. The first problem was that they wanted to retire in 10 years at age 65 but they had another 15 years worth of payments on their mortgage alone, not to mention another $ 30,000 in consumer debt of credit cards, car loans and personal loans. Secondly they only had $ 150,000 in Superannuation . How were they going to own their home prior to retirement and give themselves an income in retirement. Even after 10 years of potential growth their Superannuation could not give them a decent lifestyle for a potential 20 years of retirement.

Luckily they realized that they needed professional help and approached Premium Finance to see if they could assist. On looking at their overall position of income and debt level I found that they were paying over $ 3,500 per month on their current debts and their cashflow was suffering – in other words they were spending all their income each month just to survive. They were obviously also concerned with their future in retirement with only a small amount in superannuation.

After consolidating all their debts and getting them the right mortgage structure for their needs, they decreased their monthly commitment from $ 3,500 to $ 1,400 per month and would own their home in 8 Years. I used $ 300 of the $ 1,900 savings each month to start them on an investment plan to give them a decent lifestyle in retirement. They were totally excited and very grateful clients. It only takes one phone call to see if you can better your situation. Look at your mortgage statement and if you aren’t getting excited about how much you have paid off your mortgage in the last 6 months, especially with interest rates being so low, then you are obviously in the wrong product and need help.

My name is Lynette and I am a Relationship Manager with Premium Finance Services and started work with Premium in September 2005. My job is both challenging and varied and I would have to say I have never had a position that offers so much job satisfaction. I particularly enjoy assisting my contemporary’s, “Baby Boomers”, to increase their asset position and become self-funded retirees. We all know the predicament 90% of our parents are in today, and that is trying to exist on the aged pension with a soaring cost of living. Unfortunately Superannuation came in a bit late for a large portion of “Baby Boomers’ and so we are in a situation whereby we know our Superannuation.is not going to sustain us in retirement and it is likely that the Aged Pension could be phased out because we are an ageing population. So what do we do ? – bury out head in the sand or increase out Lotto contribution ? No we make a plan and invest to increase out asset position so that we can retire being self-funded and not dependant on the welfare system.

I urge all “Baby Boomers’ to take stock of their financial position TODAY. Is your mortgage the right structure for your needs ? Are you still in that mind-set whereby you think by paying more to the bank in repayments you will own your home quicker. Don’t you think the Banks are wealthy enough ? There IS a better way !! . Clients I had last week Maree & Mal, are planning to retire in 8 years, aged 65. Unfortunately they still had 13 years to go on their home loan, so they had a real problem. I refinanced them into a better loan facility and now they will own their home in 6 years and are actually paying less to the bank then their original payments, thus putting the saved part of the repayment into an investment strategy and making their money work harder for them. No, they didn’t have to change their current lifestyle !!

If you know your superannuation will run out after a few years in retirement – DO SOMETHING about it TODAY.