Case Study: First-time parents ready to build a road map and leverage a healthy monthly surplus

Background:

Our clients are a couple in their late 30’s who have just had their first child. Household income is $280K/annum with both partners working in tech. They have net assets of $648,000 with a healthy monthly surplus but no budget structure in place.

Goals:

  • Purchase a family home within the next 2 years
  • Save for son’s future high school & university education expenses
  • Save for annual travel goals – $10K/annum and then $30K every 4 years
  • Financial freedom within 20 years – be able to fund our living expenses from our investments

Strategy:

  • Implement a structured cash flow plan with surplus allocated towards goals list – with a focus on weekly allocation towards discretionary spending
  • Sell some of their employee share options to purchase family home within 12 months
  • Start an education investment account for their son
  • Create a travel fund and start allocating funds monthly for annual travel goals
  • Personal share portfolio to commence following home purchase

Advice Outcomes:

With a clear plan in place mapping out the financial structure and strategy needed to achieve their goals our clients will see a net asset increase of $448,002 over 5 years with the proposed strategy in place.

For this couple, the plan includes a strategy to manage their large employee share options, their high daycare costs until their son attends school and a longer-term plan around a possible relocation to QLD in the next 5-10 years.

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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