After you've cleared most major financial hurdles, you're in the home stretch. If you're ten years from retirement (and trying to shorten the last laps), you want to hit the finish line in good stride. After all, the idea is to look after the rest of your life -activities, interests and all. At Merideon Wealth Strategies we take into account plans for the ideal and the unexpected.
How we could help you:
As a hairdresser, Gayle is both a regular employee for a salon as well as an independent stylist (with her own ABN) for special events. In her early 40s, she recently settled her divorce and is due to receive a sizable lump sum payment for divided assets. While buying a home is a priority, Gayle wants to pay off her credit cards and buy a new car. She knows a financial ‘health-check' will help her see what her best options will be. Apart from her income, she receives regular support for her two young children from a savings account set up by their grandparents. Gayle knows that it's time for help from a Financial Adviser to see her through times ahead.
Gayle's Action Plan
With the entirety of her assets coming to her in one fell swoop, Gayle's timing is critical. A financial adviser will examine her current budget of income vs expenditure. The first order of business will be to check any unnecessary spending and eliminate those unsecured debts (credit cards) to start with a clean slate. As an Investment, Gayle may be right to buy a home, but the crucial issues are to find the right loan and the right amount; eg. ongoing repayments compared to deposit. Her Super will need scrutiny to select the best fund for regular employer contributions as well as from her own business (taking into account any super she receives from her former spouse via the settlement). By combining her Insurance cover through her Super arrangements, Gayle could help keep her expenses down. Her adviser will be well placed to assist her with this. Now more than ever, Gayle will have to protect her income and family with adequate Insurance. A financial adviser will also help her with Estate Planning in light of her single parenting and how this could be affected by re-marriage and ensure she is on track to meet her retirement goals.
As business people in their 50s trying to plan when they can retire, Mr & Mrs Flannigan have only two worries: Stuart and Celeste (their children). While both ‘kids' are in their 20's, neither has moved from home. Upon retirement, the Flannigans would like to downsize: Sell their family mortgage-free home, relocate to a coastal community and travel. They feel, however, they could get better returns on their home sale sooner rather than later (but then there's the kids!). The latest spanner thrown into the works is thanks to a recent merger, Mr Flannigan's employer is offering incentives for voluntary redundancy. How do they decide the best financial options?
The Flannigan's Action Plan
Lifestyle issues with their children aside, the Flannigans need to see the potential effects of their many choices on paper with their financial adviser. First up, their Super contributions have been well-managed and offer excellent self-sufficient income. Their Investments, largely the family home and a moderate share portfolio, represent a healthy foundation for a work-free life. In light of the generous redundancy pay-out, Mr Flannigan could find tax-effective ways to invest while his wife continued to work and top-up her Super. Having worked with their financial adviser for nearly 7 years, their Insurance and Estate-Planning needs are more than adequate and provide them with peace of mind.
