Pre-Retirement Case Study
Client situation:
| Situation | Bob | Jane |
|---|---|---|
| Age | 58 | 53 |
| Salary | $120,000 p.a. | $80,000 p.a. |
| House | $800,000 with $120,000 mortgage | |
| Shares | $15,000 | $55,000 |
| Super | $320,000 | $160,000 |
| Health | Good health | |
| Children | Chloe age 22, Isabel 18 and Oliver age 25 | |
| Insurance | Adequate general & personal insurance | |
Our Advice
- Ascertain desired spending requirements in retirement.
- Ascertain whether Bob and Jane want to preserve capital during retirement (so that capital can be transferred to their children and/or grandchildren).
- Determine ideal retirement ages, including semi-retirement.
- Determine likely investments - including their capital and income characteristics - to determine retirement income.
- Taper personal insurance as their retirement nest egg increases.
- Consider pre-retirement strategies such as Transition to Retirement Superannuation Pensions, spouse superannuation contributions splitting etc.
- Consider wealth creation through gearing. If a strategy of gearing is adopted, determine whether it should be within or separate to superannuation and if a mortgage reduction strategy should be utilised.
- Tax planning, including considering establishing a family trust and placing more funds into superannuation.
- Superannuation salary sacrificing.
- Estate planning, including superannuation assets which do not form part of a person’s estate, Enduring Powers of Attorneys, medical directives, etc.
"Chris and his team have helped tremendously in organising my income protection insurance and ensuring my cover is held in the most tax effective manner. The process was very straight forward and all insurance options were explained clearly so I was able to make an informed decision on what cover I wanted. "
Adam Brady