John, 60 Mechanic

Let's look at how Fin15 helped John gain financial freedom

MEET JOHN

John works as a mechanic in a small country town earning $60,000 p.a. and wants to plan his retirement. John and his wife have less than $200,000 in Superannuation, and they want to maximise their retirement income.

THE PLAN

Fin15 recommended that John change his Superannuation portfolio to a less risky investment as it was not aligned to his current risk profile. We recommended consolidating his 3 Superannuation funds into 1 and created an Account-Based Pension fund to minimise his Capital Gain Taxes. This allowed him to access Superannuation money and do a re-contributing strategy via salary sacrifice. We also created a plan where John will save as much Superannuation as possible without impacting his Age Pension payment at age 67.

THE RESULTS

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Total Savings in his first Year

For John, we recommended he take $5,000 from Superannuation and conduct a re-contribution strategy. This helped him save $1,800 per annum in income tax while doubling up his super contributions. We also recommended comparable Insurance inside Superannuation, which is personalised to increase his chances of qualifying for a claim if an unforeseen event happened. His premiums were reduced from $3,800 to $2,500 per annum. The recommended consolidation of Superannuation and the creation of Account-Based Pension helped reduce his fees payable from $2,000 to $900 per annum.