Smart people who are serious about their future

 

Would you benefit from more:

  • Confidence that you will have enough money to do all the things you want.
  • Certainty that your financial future will be secure.
  • Clarity about what you need to do and how you are traveling from a financial perspective.
  • Control over all aspects of your finances such as tax, super, insurances, investments, and loans.
  • Consolidation of your total financial situation so you can manage the paperwork and administration easily and stay on top of your finances.

Do you feel like you don't have a whole lot to show for your years of hard work?

Do you feel like you are so busy making a living that you may have possibly forgotten to make a life?

Are you looking for someone who can guide you through the complexity and confusion of the financial world? Someone who can turn that sense of frustration into a sense of achievement?

Someone that can show you a proven path to wealth and prevent you from making the mistakes that most people make?

Someone that will provide and create value for you far in excess of what you will pay them in time and money?

 

IF YOU ARE:

  • Committed to financial success
  • Motivated to take a proactive approach to creating a better future for yourself and your family
  • Responsible enough to take control and implement the strategies and advice we recommend

 

 

We MAY NOT BE the right fit if you:

  • Are not motivated and committed to improving your financial position and financial future.
  • Are seeking a "get rich quick" solution.
  • Wish to speculate with your money and believe in trading activities.
  • Rely on mainstream media for your financial decisions as opposed to time tested and proven fundamentals.
  • Believe in doom and gloom and are pessimistic about the future of the Australian and world economy.
  • Believe that borrowing millions to invest in lots of residential properties alone will be the answer to all your financial problems.
  • Would rather watch the investment markets every day instead of spending time on your career, family and health or things that you love.

 

 
 

Pay-down debt or invest?

Who

Jodie and Neil are in their early 40's and have 2 dependent kids. They live in an outer bayside suburb of Melbourne and love the home that they live in.

Neil works full time as a senior manager for a plumbing business and Jodie works part time in an insurance broking office. Neil is on a high income and pays a lot of tax. Both Neil and Jodie consider themselves to be motivated and disciplined and are driven to have a good life for themselves and their children.

 

Now

Due to their discipline they have, the mortgage on their home is nearly paid off. Jodie also owns an investment property which she bought prior to meeting Neil. The investment property has a debt on it however the rent covers most of the loan repayment.

They have a healthy surplus left after all their expenses and they want to know what the best thing is to do with that surplus amount. Should they continue to pay extra off the mortgage, pay off the investment debt, save in a savings account or invest?

 

questions

Jodie and Neil came to see us because they were recently advised, at a property seminar, to buy an off-the-plan property to secure their financial future. They were not sure if they should buy another property and were also wondering if the people running the seminar were just selling products.

Both Jodie and Neil agreed that they wanted advice, which was specific to their unique situation and needs, rather than buying off-the-shelf general solutions. In addition they recently found out that a friend of theirs, who bought an investment property, struggled to find a tenant for three months due to the number of available properties in the area.  He went through extreme stress.

 

advice

After introducing ourselves and emphasising our focus on strategic and tailored advice, as opposed to selling products, we spent two hours asking questions to understand Jodie and Neil's current circumstances and goals. We discussed their family situation, work (longevity, job security, career progression), lifestyle, concerns, investment experience and current financial position in addition to cash flow. We also talked about what was important about money to them and if there was anything that was keeping them up at night.

Jodie's and Neil's biggest need was to have more simplicity in their lives. Whilst they did not wish to give up complete control of the management of their finances, they were looking for someone that could help them with consolidation, clarity and control so they could spend more time on their families and careers.

 

Strategy

After Jodie and Neil engaged us, we worked on strategies for them so they could secure and preserve their current financial position.

Because Neil's income was critical to paying for all the household expenses, and to also plan for a secure future, we ensured that the income was preserved through a combination of personal insurance policies, which ensured that debt repayments, medical expenses and kids education expenses could continue in the event of Neil ever suffering from an accident, disability, cancer, heart disease etc.

We then put an investment plan in place, which was dictated by their objective to be financially independent by age 55.

We ensured that the investments were structured to provide the level of growth that was required in their net investment asset base, to produce sufficient income at age 55 to cover all their household expenses. Quality investments were selected to reduce the risk of over concentration in direct residential property, through diversification into negatively correlated assets (assets that perform differently to direct residential property). In addition, some of the investments and strategies chosen would provide Neil with much needed tax relief through reduction of his taxable income.

Because Jodie and Neil are time poor, we structured their investments so they would get consolidated reporting and valuation on their investments, making it easier for them to track how they are traveling towards their goal of financial independence.

We reviewed their super and ensured that the investments in super were consistent with their goals. We also made sure that Jodie's multiple super funds were consolidated into one fund (electing the one with the most features appropriate to Jodie's needs).

Because Jodie and Neil have two dependent children, we assisted them in having a proper will and other estate planning documents, to ensure that their assets would pass on to their bloodline in the most tax efficient manner, in the event Jodie and Neil ever passed away prematurely and unexpectedly.

 
 

Do I have enough money to retire?

Who

Lorraine is single and works as a senior manager for a large corporation in Melbourne's CBD. Lorraine is 59 and is starting to think about retirement. She travels from the south eastern suburbs into the city for work, and is starting to find the one hour commute tiring and stressful. Because she is starting to think about retirement she came to see us on the recommendation of her accountant.

 

QUESTIONS

At the meeting we discussed Lorraine's current situation. Lorraine was not sure when she could retire based on her income, her superannuation balance or her assets and liabilities.

 

Advice

We asked Lorraine to complete a budget of her current expenses. After determining which expenses would continue at retirement, which ones would increase and which ones would reduce, we had an annual figure that was reflective of Lorraine's income needs at the point of her retirement for her to feel comfortable and secure.

Lorraine's biggest need was to live a life of independence and dignity, because she had witnessed first hand the hardship her father went through at retirement due to not having enough money. For us, knowing and understanding Lorraine's values was very important, as we could see that what was important to Lorraine about money was "independence" and "dignity"... not necessarily having a large pool of money for the sake of having money.

 

Strategy

Once we had a clear understanding of what Lorraine's expenses were going to be at retirement, we had a basis to work with. From the annual expense figure, we derived what the size of Lorraine's asset base (net of lifestyle assets) needed to be to achieve the required level of income at retirement.

Once we had complete clarity about her current position, and where she needed to be, we were now in a position to provide strategic recommendations. Because Lorraine was single, she was not too concerned about leaving an inheritance. She just wanted to know that she would not run out of money in her later years.

Through a combination of tax reduction, investing and superannuation strategies, we could see that Lorraine would need to work at least until the age of 68. Whilst this was not what Lorraine wanted to hear, it was a kind of relief for her because now she had clarity. Yes, Lorraine had to adjust her expectations slightly in regards to her current lifestyle, however she could now plan her life for the future and had a reason to stick to a disciplined financial strategy.

 

Results

The reality is, if Lorraine had come to see us at age 55, she would have quite possibly been able to retire at age 64. The important thing is Lorraine now has more certainty, because she would have hated a surprise ten years into her retirement. As part of the process, we also updated Lorraine's personal insurances to ensure that if she fell sick, or had an accident or illness, her retirement plan could continue.