Premium Finance Stories

This is Lynette, a Relationship Manager for Premium Finance.  I had a lovely couple in during the week, the husbands motivation for coming to see us was to reduce the horrendous amount of tax he was paying, over $ 40, 000 per annum and some $ 50,000 jointly.

As I like to reduce my clients tax to under $ 5,000 per annum, I put in place a strategy to enable them to use their tax dollars now to assist them in an investment plan and thus enable them to retire in comfort.  This couple wanted to retire in 14 years but I pointed out with the superannuation they currently have they were on target for a retirement pension of less than $ 10,000 per annum plus maybe a part aged pension if  it was still around.

How was it possible for them to go from an income today of over $ 160,000 per annum to one under $ 25,000 per annum and not have to make dramatic changes to their lifestyle for their 20 years plus of retirement.  They would still have rates, electricity, phone, insurances, food, registration and maintenance on maybe one car etc. There would be no money available for travel so I hope they enjoy day time TV.

Even though the husband’s motivation was to reduce tax, the wife unfortunately couldn’t see the benefit of saving $ 45,000 in tax over 14 years, some $ 600,000 in their retirement kitty, not to mention the creation of wealth from their investments.  There will always be people who bury their head in the sand and think they will never grow old, however I felt quite sad for the husband because of his wife’s attitude, he will now spend his retirement in poverty with her.  I hope he buys her some good investment books for Xmas so she can see what a bad finance decision she made for them both and perhaps knowledge will lead her to understanding and time to correct the bad decision.

Tags: Premium Finance, Premium Finance Services

This entry was posted on Monday, July 20th, 2009 at 7:00 am and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.