I was talking with Michael about retirement which is a topic that most blokes in their 40’s begin to think about. Well Mick reckons he’s gonna retire at 55. I said that’s a great plan mate; how are you going to do that? Mick said “I’ve got me super and I’ve almost paid off me house”. I asked him, what do you want to do in retirement Mate? Mick said, “awe mate me and the Mrs are gonna go travellin’ to Europe, the USA, and we’ll go to Asia, NZ and we wanna see a bit of Australia too”. I asked how he could afford to do all that travelling as well as live. He said “With me super”. Well Mick was flabbergasted when I revealed the reality to him.
When Mick realised that his super was only going to give him and his wife an income in retirement of about $30,000 per annum he saw his dreams dissolve before his eyes, you see Mick’s Mum & Dad live on the pension which is about $30,000 per year and Mick knows that they have no money left over after paying their living expenses. All of a sudden Mick saw himself in the same boat as Mum & Dad. Daytime television and the pensioner’s Thursday lunch special down at the local RSL isn’t what Mick has in mind for his golden years.
Mick’s demeanour turned from being dejected to being excited when I showed him how he can still achieve his goals if he is willing to take some professional advice and begin an investment portfolio.
Mick and his wife earn about $120,000 between them and pay about $25,000 in tax. I said to Mick, “do you know that money is yours and you can get it back?” well now I had his attention. I said “Mick, you need an investment property, the tenant will pay about half the cost and the taxman will give you some of your tax money back to pay about 25% of the cost that means that for about $80 to $100 per week you can have an investment property.” Mick said “where do I sign?”
Well that was 12 years ago, Mick and Sally are now 58 and decided recently that the 5 investment houses they have are positively geared and after meeting the cost of their investment loans they have enough income to stop work and enjoy life.
It was nice to get an email from them while they were travelling down the Rhine River in Germany saying “thanks mate”.
If you would like your retirement potential analysed give me a call at Premium Finance Services. This is what we do; we help people have a better retirement.
Email me on greg.lister@premiumfinance.com.au or call me in Brisbane on 07 3024 1700 or in Melbourne on 03 8102 5901 and let me help you to a better retirement.