This is the position they started in:
Rob and Joanne both worked
so had good incomes, had a home and a investment property, had a large
mortgage, wanted to make the most of their financial position and wanted to
start a family. They were nervous to trust anyone, but their family had used us
and highly recommended us to them.
Heard bad things about financial planners in general and they were just to doing things themselves but knew they need professional guidance and advice.
Had the first meeting, put their mind at ease because we could clearly show them several strategies that applied to their situation to help them achieve their goals, and they could get this for a fixed advice fee without being sold any products.
They agreed to go ahead with our fixed fee for advice and we prepared the full financial plan for them.
This was the goal, they wanted to create more wealth, pay off their mortgage, and be in a position to retire by the time they were 55. They also wanted to protect the wealth and incomes they have should anything happen to them.
These were the challenges, starting a family meant a reduction in income and they planned to move to Sydney for work, which meant higher cost of living.
This is how it unfolded, we used cashflow and debt management strategies to create a cashflow surplus, using this we paid down their mortgage to a comfortable level, built up cash reserves for when they started a family, used equity in their properties to buy another property and start share investing, organised their superannuation so they could buy a property through it and some shares, structured their mortgages so that when they moved to Sydney they had money for a deposit to buy a home. All of this clearly showed them how much they need to have invested in the next 5 years to be able to achieve their short term goals and their all important long term goal of retiring at age 55.
This is the result / current position, 10 years later at age 40 they have a lovely property in Sydney that has nearly doubled in value, 2 properties in QLD, a healthy share portfolio, their mortgages are down to a low level after selling one property to help reduce some of the mortgage so that they can now enjoy raising their 2 children without the pressure of a large mortgage, all allowing surplus cashflow so that they are comfortably living of their 1 & a half incomes. Their superannuation and wealth creation is on track to comfortably retire at age 55, and this is reviewed each year to make sure we stay on track. Their back-up financial plan is also in place due to having a family, which is having appropriate death and income protection insurance in place should anything happen to either of them so that thy will continue to be financially fine.
