Reaching an income of six figures plus is the holy grail for many people. It’s a sign that you’ve found financial security and that you are set for life. Right? Wrong!
Case study
Let’s look at the case of Jake and Deborah. He earns $350,000 a year. She earns $80,000 a year. Combined, they have over $400,000 in super.
You might not believe it, but this will not last them through their retirement!
Why? What they both didn’t understand was that there is a big difference between income and wealth. While Jake and Deborah have a $430,000 combined income, they also have a $2 million mortgage on their home, $35,000 in credit card liabilty and a $96,000 car loan. In addition, they pay $30,000 a year to send their two teenage kids to private schools.
What will happen when one or both of them retires and that income is no longer there?
What the couple lacked was proper strategies to maximise their wealth.
Through debt recycling, they could turn $500,000 of previously non-tax deductible debt into investment debt, allowing approximately $22,500 per annum as an additional tax deduction.
Or they could undertake a leveraged investment, which would result in $2 million in additional assets with around $180,000 in annual tax deductions.
Another option is to choose a simple tax-effective investment strategy to assist and provide for their children’s future education costs, or even a first home deposit.
Financial services firm JDL Strategies has spent more than 22 years providing wholistic wealth creation, tax minimisation and debt reduction strategies for clients like these, who think they are financially secure but actually aren’t.
Time and time again, JDL has woken many people up to their financial realities and provided them with a clear and certain path to true financial freedom.
To find out more about how JDL can provide the best strategy for your financial situation, click here.
