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Case Studies

Here are some real life examples of how we have helped our clients achieve a better result...

Savings a client made by switching their $750,000 UK Pension to us

Investment Management fees from their previous provider was approximately 2.5% - we transferred them to our provider of choice who have a 1.5% fee – a saving of 1% per annum.

In addition, they paid a 1% Advice Fee which was non tax-deductible – our advice fee is tax deductible.

On a portfolio of approximately $750,000 this meant a saving of almost $8,500 excluding the savings from tax deductibility.

Why an adviser is an ideal alternative

I had a chap contact me recently who was frustrated by his bank. He said he’d never used an independent adviser before. But now he felt that he had to because his very good fixed rate had just expired and now, because his interest rate had reverted to the on call floating rate, he was paying much more fortnightly! His budget was being wrecked! He had called the bank but no one had got back to him. Now he was frustrated.

He wanted to restructure, even change banks but in our conversation it became clear he was more frustrated by the situation than the bank and really just wanted an outcome. I told him in turn that remaining where he is was the best for his current situation. We discussed his rate expectation and I was confident I could get that from his current bank. Long story short, that’s what we got and everybody is happy.

The purpose of telling this story is not to criticize the banks. They, like any business run a tight ship and sometimes the staff get a little overwhelmed. An adviser is an ideal alternative because we deal with Broker Units separate from the branches and they are dedicated to getting the volumes of applications they deal with through. They are specialists, always working on deals and operate under a strict process that Advisers are familiar with. Use an adviser! We are independent, ready and willing and can manage your rates changes and negotiations ongoing, for as long as you have a mortgage. You will not be disadvantaged but because we monitor rates ongoing from numerous sources we know whether you’re getting offered a good deal or not. We will certainly look to see if we can improve your situation. Use an Adviser. We can help.

Thomas O’Leary

Mortgage Broker Rotorua

Savings a client made by switching their $400,000 UK Pension to us

Based on UK Pension transfer of approximately $400,000 we were able to save client almost 1% on their Investment Management fees.

In addition, their Advice Fee was 1% but not tax deductible.

Their investment management savings equated to approximately $3,700 per year.

Their advice fee, which equated to approximately $4,000, is now tax deductible.

Make sure your insurance scheme is best for you

We were approached by an Agricultural Contractor who felt he had not been served well by his current, large, nationwide broker. We reviewed his situation, went to a number of insurers we knew were not part of his existing brokers’ scheme and promptly reduced his total insurance bill by around 20%.

In addition to knowing his insurance now suited his business requirements, he has an additional $5,200 per year to spend on his business rather than on the insurance premiums.

Loss of rents claim win!

Phillip has a rental property and his tenant who had had a 12 month lease was shifting out in three days and was in cleaning mode. After finishing the kitchen she left to spend the night at a friend’s place.

Unfortunately, somebody else decided they would take advantage and broke in to steal the hot water cylinder – which they disconnected but could not actually get out of the cupboard. When the tenant arrived the next morning, the water was ankle deep throughout the house.

The insurance company paid for a new floor, wall board, new carpet and drying out, all of which took about three months and more than $20,000. However, they refused to pay for loss of rents, saying that the lease was fully paid up for the remainder of the tenancy and no new tenancy had been completed - No new tenant, no rent actually coming in so there was nothing to reimburse.

After negotiations with the insurer they have now agreed to accept the loss of rents claim which will amount to in the region of $2,500. This negotiation was successful because the insurer was open to discussion, we had the knowledge and the expertise to put a valid case to them and we pay them enough premiums that they wanted to listen.

Landlords often need the rent coming in to service the mortgage, pay the rates, the insurance and many other charges which keep coming in whether there is a tenant installed or not. So when the rent stops coming in, cash flow becomes a very real issue indeed. When we chose the insurer to deal with here, we did not look at the price alone, we also made certain that we had a package which we could make work when it was needed.

Ensure you have the right policy working for you

Recently we reviewed the policy for a flooring business in town and found through our Advisernet connection we had a policy that could do the job better for them.

In doing that we reduced the premium by $300yr and lowered the standard excess from $500 down to $100.

The policy utilised is only available through Advisernet.

We did the same thing for an electrician in town - reviewed policy as theses people were price driven.

Again using a policy only available through Advisernet we were able to save them just over $300yr and lowered their standard excess from $500 down to $250.

Income Protection

David was a 36 year old construction supervisor at a large building site in Wellington. He was recently divorced from his wife, and was the primary care giver of their five year old son, Richard.

One day at work, David slipped and fell awkwardly, injuring his knee. He was taken to hospital where it was determined that he would need knee reconstruction surgery.

Given the physical nature of David's work, he was forced to take four months off work to allow a full recovery from the surgery.

David had taken out Income Protection prior to his accident. As a result he was paid a Total Disability Benefit equivalent to 75% of his income, less any other disability income (e.g. ACC payments). This covered his rent living expenses and the cost of looking after Richard while he recovered.

Want to find out more? Simply give Mark Jones a call on 0800 404 202 or email him a message