| Clients |
Michael, and Lisa, mid 30s, children aged 4 and 1 |
| Income |
Michael – Engineer - $90,000 p.a.
Lisa - Admin - $8,000 p.a. |
| Situation |
Lisa had decided to return to work 1 day a week to generate extra income for her family. Michael and Lisa were able to save 100% of this income to improve their financial situation. They sought financial advice as to how to best invest this money. |
| Solution |
Michael and Lisa were advised to invest half of their savings ($4,000p.a.) into superannuation. As a combined result of the Government Co-contribution scheme and the Spouse Tax Offset, Michael and Lisa were $2,040p.a. better off – a risk free return of 51%. The money invested in superannuation was also invested and will continue to compound and grow during their working lives. |