Doing well, but no plan to make the most of it
Jessica was a successful 50-year-old senior manager who found herself at one of life's crossroads. She recently divorced and had no dependents. She was earning $300k a year and owned a home valued at approximately $1.4 million. She had $340k debt, and $900k in super and was building a good nest egg for retirement. She was working hard and doing well, but had no plan to make the most of her efforts.
Jessica’s will was outdated, her superannuation investments were mismatched with her risk tolerance, she was spending without much thought or planning, and her lifestyle would be severely impacted if she became sick or injured.
She had some big plans for renovations to her home in the next couple of years and hopes to buy a new car. Jessica was aiming to retire in 10-15 years with enough income to support her lifestyle and her passion for travel, but she wasn’t sure if she was on track.
Our Comprehensive and Personalised Solution
- Getting Jessica’s Wishes in Order
Our first step was to refer Jessica to an estate planning legal professional who assisted her in preparing a new will and enduring power of attorney. Jessica now has a will that accurately reflects her wishes, ensuring her beloved nieces and nephews are looked after. - Protecting Jessica’s Lifestyle
Protecting assets like homes and cars is something that people often think of first, but they don’t stop to think about protecting their income and lifestyle enough. In Jessica’s case, we were able to design a protection plan tailored to her needs. The plan ensured that her debts would be cleared, and her lifestyle maintained even if she couldn't work due to injury or illness. By optimising insurance, we managed to save Jessica over $2,000 annually in premiums while enhancing her overall protection. - On Track to Retirement
Like so many of us, debt management plays a big part in ensuring we can retire comfortably and still live the life we choose. In Jessica’s case, we showed her how she could pay off her home loan within four years whilst still maintaining her lifestyle. We developed a debt and cash flow management plan for Jessica, which included detailed projections through to her life expectancy. The plan we outlined showed the clear steps towards being debt-free and enjoying the lifestyle she dreams of.
For retirement savings, specifically superannuation, we recommended a diversified portfolio aligned with her risk tolerance. While this adjustment slightly reduced the expected long-term returns, Jessica felt much more comfortable with the level of risk, knowing she would be less affected by market fluctuations. Better still, our projections showed that she could still hit her retirement goals while being more comfortable with market movements.
Peace of Mind - Nailed it!
Today Jessica has a clear plan to pay off her mortgage and retire comfortably in only ten years. She is confident that she will be able to fund her lifestyle and indulge her love of travel well into her 80s. If the unforeseen happens, she knows that she is covered to still have the same quality of life. If the worst happens, the people she loves most will be financially secure. She has a new car and plans are well underway to renovate the house. Jessica is comfortable, confident, and has peace of mind because she knows that she is on track.