5-10 Years of planning for overseas holidays to see family living overseas
Annual trips to see family living overseas can be a priority and well planned in advance. An Italian couple now citizens of Australia still have ageing parents living overseas. They announced their priority to return every year for several years until it was no longer feasible for them to travel overseas anymore to see family.
Factoring this into their financial affairs resulted in the establishment of a 10-year annuity at a set interest rate. Each year a set amount was paid to them in a set month to cover the cost of their overseas trip. This provided comfort that the costs of the annual holiday were set in place, planned and required no further budgeting only a booking. Other investments were focused on growth which helped to balance out their various investment returns.
An additional Centrelink benefit meant that the $100,000 annuity which paid out $10,000 plus interest each year over 10 years, assisted their asset test level and resulted in an increase of $30 per fortnight Centrelink, the day after the annuity was established AND A FURTHER $30 PER FORTNIGHT INCREASE EACH YEAR FOR 10 YEARS. This Centrelink advantage related to the design of this specific annuity.
Family visits to see loved ones living overseas was a top priority in this case.