Michael and Louise are both 52 years old and up until recently, they have been focused on raising their two sons. Now that the boys have both left home, they’ve realised that they just won’t have enough money to support themselves through retirement by just relying on what they have in super.
When we met with Michael and Louise we discussed what they would like to achieve for them to be comfortable in their retirement and we then created a free financial strategy to give them a better understanding of what is realistically achievable based on their unique circumstances.
The outcome for them was quite amazing because based on the current payments they were making, they still had almost 19 years left to pay on their $395,000 on their mortgage. So with our strategy, we showed them that with the right investment property along with understanding the importance of the correct structure, they could pay their own home off in just 9 years which would result in them saving just over $64,000 in interest.
That means that their mortgage can be paid off in the half the time, and on top of that it also gives them an extra $64,000 that they can use to go towards their own wealth creation instead of giving it to the banks.
Another great outcome for Michael and Louise is that by having the right type of investment property it’s going to create significant tax savings for them, and in their case it was $7729 a year. We also showed them how those tax savings can be paid to them on a weekly basis in their pay instead of waiting until the end of the year. This means that Michael will be receiving an extra $148 dollars each week in his pay.
With the tax savings now coming in his pay each week, combined with the rental income from the investment, this meant that they could invest in a brand new home, and instead of having to pay money out of their pocket each week, this investment was actually $56.00 a week cash flow positive.