If you have suffered a personal injury and/or an illness that creates a Total and Permanent Disability (TPD) claim, it is essential that you reach out to receive Financial Advice.
Typically, the greater the size of the personal injury settlement and/or TPD claim, the greater the benefits of Financial Advice because of:
Different tax minimisation strategies (often by creating superannuation pension accounts and making contributions).
The ability to maximise the amount of Centrelink Disability Support Pension (subject to meeting the income and asset test thresholds, preclusion periods and disability definitions).
An adviser can create a Financial Plan which aims to maximise after-tax benefits of utilising these proceeds. For example, in some cases it may be best to:
Pay off your mortgage, or
Create a pension income stream, or
Leave some funds in superannuation accumulation phase or
A combination of all three
The table listed above shows the benefits of structuring a TAC and TPD claim effectively versus either doing nothing once the proceeds are received, or withdrawing all the fund proceeds into a bank account and paying off the mortgage.
By structuring wealth effectively, it is estimated that we can provide enormous value to the clients situation:
$74,250 worth of tax saved
$26,000 p.a. of extra income each year
$41,000 p.a. of extra total investment returns
If you have just suffered a TPD claim and/or personal injury settlement, you can book in for an obligation free initial call:
General Advice only. The calculations above are based on the following:
Client Aged 45
TPD Payout of $900,000
TAC Payout $400,000
Mortgage of $300,000
Superannuation of $100,000
Cash $20,000
Partner to remain as Carer / home duties
Note a preclusion period could occur for a period before these full benefits are realised however the outcome is still preferrable versus withdrawing all funds which would also stop the partners payment
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