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Tony is a self employed local painter. As he is self employed he has no annual leave entitlements or workers compensation and when he is unable to work he doesn’t get paid, its quite a physical role so any small ailment makes it difficult for him to work. In 2015 we recommended Tony apply for an income protection policy with TAL to ensure he has an ongoing income should something happen to him at work or on the weekend.

 

In late 2016 Tony suffered a heart attack and had to undergo a significant quadruple bypass operation. On learning of his health status, we immediately lodged a claim with the insurer. Within four weeks Tony was receiving more than $4,000 each month. This took a lot of stress away and allowed him to focus purely on his recovery. Tony returned to work in July 2017. The insurance is still in place should Tony suffer a relapse or any other condition affecting his ability to work.

Mark runs a transport business specialising in the transport of movie sets, cameras and high value goods. He had insurance with Clearview which he took out some years ago and was paying a premium of more than $15,000 per annum. This was causing him some distress as the premiums were becoming unaffordable. He came to us asking for us to review his policies.

 

We underwent a full review and found that Mark had been underwritten for a role that he doesn’t perform, this put his policies in a higher risk occupation category and was the reason for his significant premiums. We had Mark re-underwritten and obtained the same cover for a premium of less than $5,000 per annum saving him more than $10,000 per year as well as allowing him to continue with such an important cover for him.

Calvin is an electrician aged 63. He wants to work until age 70 and then spend his days surfing down the south coast. The problem is he didn’t know how to financially afford this.

We completed a retirement plan and a review of his existing superannuation. Calvin now has a simple but very effective plan to follow each month which allows him to substantially minimise his income tax by more than $10,000 per year and ensure his funds are working as hard as possible without taking on unnecessary risk. On his super products we saved him more than $5,800 per annum in fees for a vastly more superior solution. Calvin is now confident in his position and is regularly reviewed by Jigsaw to ensure he stays on track.

John and Stephanie are on the aged pension, they had a large home that they had lived in for 40 years. The area they were in has changed significantly and the street was being filled with duplexes and had lost its character. The decided they wanted to move into a new home in a new area close to their grandchildren that wouldn’t have constant development going on and with a home that was more suited to their lifestyle.

 

They found their perfect home but also learned with the downsize they would lose the aged pension. Jigsaw provided them with advice on how to manage the proceeds of their home to give them an ongoing income stream. The income they are receiving is greater than any aged pension they were receiving, completely tax-free and they are in a lovely home in an area they love.

Graham is a self employed mechanical engineer, he has had a long successful career and with the profits of his business he has purchased a number of commercial properties. One such property his business operates out of. Graham was never interested in super and found the simplicity of property work well for him. The problem for Graham is that he was receiving a lot of rental income plus his normal wages and was paying significant amounts of personal income tax. After a full review, we recommended Graham setup a Self Managed Super fund. His fund then purchased the commercial property that his business tenants. The sale was capital gains tax free with the correct advice and he only paid $500 on the stamp duty for the transfer. Graham’s company is now paying rent to his self managed super fund. The rent is a tax deduction to his business and the super fund is not paying any tax on the rental income due to his age, the rental income is being invested into different types of assets to help diversify his asset base. At this stage Graham has no plans to retire but with our advice his business is receiving a $70,000 tax deduction each year and Graham is receiving this rent through his super fund tax free. This represents a personal benefit of $34,300 each and every year.

We recently provided advice to a three way partnership of doctors. Together they all owned the building and the practice. Two doctors are looking to retire with the third doctor happy to keep going. The two doctors looking to retire wanted to sell the building to help fund their retirement, however this would put the practice potentially in a position where it would have to move from what is a perfect location that they had been at for over 20 years.

 

We helped the third doctor set up a structure to buy the building off the remaining partners using super. This allows the business to continue in the same location, it allows the retiring doctors to receive funds for their retirement and the remaining doctor has an excellent asset for his future retirement within the most tax effective environment possible.