Working hard towards the possibility of an early and comfortable retirement

Background:

Our client is a single male turning 50 this year. He has an annual income of approx. $95K/annum. He does not own a property and has investment assets of $505,000. This is made up of his savings, super & investment accounts. We have been working with this client on his retirement strategy since 2017.

Goal:

  • Retire at 60 and fund ongoing living expenses of $42,000 per annum from investments.

Strategy:

  • The Client will inherit the property he lives in now, so a property strategy has not been included in his plan.
  • The focus of his strategy is to build his investment portfolio & superannuation account as much as possible while working.
  • Currently, strategy contributions are;
    • $2,000/month into his personal share portfolio
    • $400/fortnight into superannuation via salary sacrifice contributions
  • We review the lump sum and strategy each year based on his savings balance and cash flow to set targets;
    • Make a personal deductible contribution into superannuation – boosting his super balance and lowering tax – the 2023 target is $6,000
    • Make a one-off lump sum contribution into personal share portfolio – the 2023 target is $7,000

Advice Outcomes:

With a retirement strategy in place, our projections indicate our client will be able to retire at the age of 60 and be able to fund his annual income target of $42,000/annum.

The 2023 financial year superannuation strategy is expected to save the client $3,198 in tax and boost his superannuation balance by an additional $13,940/annum.

Since we started working with this client in October 2017 his net asset position has increased from $224,000 to $505,000 – an increase of $281,000.

The client is excited about the progress he is making each year towards his retirement target. He also feels confident that he will be in the position to consider early retirement if he stops enjoying work because of all the hard work he has put into his retirement plan & strategy.