Business Owners / Pre Retirees

Peter and Jane own a number of child care centres and they approached their existing accountant, and the financial planner associated with the accountancy firm, and said: “We are paying too much tax and we have strained cash flow. What can we do?”

The response they received was; “Nothing, you just have to pay the tax…”

A friend referred Peter and Jane to us and we took the time to ensure we fully understood their goals and objectives. These included:

  1. Reviewing their tax situation.
  2. Freeing up cash flow
  3. Purchase another child care centre within three years, and;
  4. Retirement for Peter at age 60.

After understanding these goals and objectives, we offered a solution that re-organised their affairs, this included:

  1. Set up a budget to enable them to live comfortably now
  2. Repay a $565,000 home loan
  3. Increase contributions to superannuation, and;
  4. Holding assets in a tax effective manner (both short term and long term).

Peter and Jane are now able to divert their home loan repayments to a tax effective environment to assist with debt reduction and retirement planning. They have managed to repay $400,000 in re-organised debt over the last three years, which is helping Peter to reach his goal of retiring by the time he is 60 (two years' time).