Client Success #42: Planning Around Capital Gains
Premiums reduced: More than $4,000 a year
We met a couple who wanted a full review of their finances, starting with an older insurance policy that was no longer cost-effective. We took the time to understand their whole position, including a capital gains tax bill on the way, then planned the cover, the tax and their investments together. Their premiums are now more than $4,000 a year lower, and their capital gains tax approximately $29,725 lower.
Client Snapshot
- A couple
- An older insurance policy that was no longer cost-effective
- A capital gains tax liability
Their Goals
- A full review of their financial position
The Challenges
- One partner’s older insurance policy was no longer cost-effective
- They were facing capital gains tax
Our Strategy
- Replaced the older policy with appropriate cover at a lower premium
- Put a tax-effective insurance strategy in place for both
- Planned how to reduce the capital gains tax and income tax, with the figures to confirm with their accountant
- Designed a diversified investment strategy
- Reduced both partners’ super fees
The Outcome
Their premiums are more than $4,000 a year lower, their capital gains tax is approximately $29,725 lower, and their super is projected to be about $180,000 and $72,000 higher by retirement. As with any policy, the insurer assesses the claim.
- Premiums reduced
- More than $4,000 a year
- Capital gains tax reduced
- Approx. $29,725
- Super fees reduced
- $1,227 and $759 a year
- Estimated income tax saving
- Approx. $696
- Projected super uplift
- Approx. $180,000 and $72,000
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