Case Study: Building a plan for a self-employed couple with smaller super balances

Background:

Our clients are a couple in their 40’s. They are self employed and have two teenage children. The household income is $200K/annum with both partners working in Real Estate. They hold net assets of $2,364,000 (including home equity) with smaller super balances and no budget in place.  

Goals:

  • Pay off their mortgage within 15 years
  • Purchase an investment property within the next 12 months
  • Have an investment portfolio that can provide a passive income within 12 years
  • Save for annual travel goals – $10K/annum
  • Help the kids with property deposits over the next 3 – 8 years

Strategy:

  • Implement a structured cash flow plan with surplus allocated towards goals list
  • Commence a loan reduction strategy and allocate extra money to their mortgage each month
  • Purchase an investment property within the next 6 months
  • Commence a personal share portfolio to help with investment portfolio goal
  • Use cash to make catch up super contributions to boost their balances and reduce their tax
  • Create a travel fund and start allocating funds monthly for annual travel goals

Advice Outcomes:

Our Clients now have a clear plan in place mapping out the financial structure and strategy needed to achieve their goals and will see a net asset increase of $778,167 over 5 years.

We have been able to maximise their large current cash holdings to implement a plan that will pay off their mortgage within the time frame discussed and includes a strategy to significantly reduce their tax in year one of their plan.

Ryan Porter is a Wealth Coach at Catalyst Wealth Group. His mission is to help his clients achieve financial success and live their ideal life.

Any advice or information in this publication is of a general nature only and has not taken into account your personal circumstances, needs or objectives. Because of that, before acting on the advice, you should consider its appropriateness to you, having regard to your objectives, financial situation or needs.

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