Jenny Preparing for Retirement

Jenny – Preparing for an early retirement

Numbers Speak For Themselves!

1
Able to retire 6 years before Age Pension Age
$ 1
Estimated 10 year benefit of advice (after all costs)

What Were Jenny's Goals and Frustrations? this is her Story!

When Jenny*, 54 and divorced, approached us for advice she had recently sold and investment property and was unsure of how to use the proceeds of the sale to prepare for retirement. 

While she enjoyed her job, she was starting to burn-out due to the high stress role, and did not like to prospect of working until her mid-to-late 60s, but was not confident that she could afford to retire any earlier and still have a comfortable retirement. In an ideal world she would like to retire by 60 is this was achievable. 

With her two children away at university, her expenses had significantly reduced (even though she was providing some ongoing financial assistance to them both) and she wanted to make sure this additional cashflow went to good use in preparing for her retirement.

Jenny had a healthy superannuation balance, however much of these funds were attributed to an older ‘Defined Benefit’ superannuation plan that, unlike a current day fund, relied on a complex set of rules, formulas, and a points system to determine her benefit at retirement. As she had spend some time out of the industry that this plan was linked to, she knew that she would not be able to receive the maximum retirement benefit without making changes and getting advice.

*Jenny is used as an alias to protect the privacy of our client. All other information contained in this case study is based on the real outcomes we were able to achieve.

Challenge Highlights

Jenny’s situation provided many areas where we could provide valuable advice, both strategic and product driven. After discussing her situation and providing insight into where we could deliver the most value, we were able to assist Jenny in identifying some of the main challenges she faced so we could work with her to develop a tailored plan to address these areas in preparation for retirement.

The Solution: HOW DID WE HELP JENNY SOLVE HER PROBLEMS AND WORK TOWARDS HER GOALS?

To assist Jenny, we provided a her with a multi-year plan, incorporating a range of strategic and product advice, backed by detailed financial projections, to help her maximise her retirement savings, reduce her tax, and retire within her desired timeframe.

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Investment advice

Established an investment portfolio that aligned with Jenny’s goals and tolerance to share market risk

As part of our advice to Jenny, we established an appropriate mix of Growth and Defensive assets to help her meet her goals and provided her with an overall investment strategy backed by our internal Investment Philosophy, providing peace of mind that she had a plan in place no matter what share market conditions were like.

In addition to this, we provided recommendations on an appropriate structure and product to hold her investments, and constructed her an investment portfolio of high-quality, research backed investments to help her meet her goals.

superannuation advice

Reviewed Jenny’s existing superannuation products, investments, and contributions strategies and provided updated guidance

We reviewed Jenny’s existing market linked superannuation fund and provided product and investment recommendations that aligned with her overall goals and complimented her personal investment portfolio.

We also reviewed existing contribution strategy to her Defined Benefit fund, streamlined the order and amount of contributions, and provided Jenny with a multi-year plan to maximise the retirement benefit available 13 months earlier than her existing arrangement would achieve – these changes will provide additional opportunities to build her retirement savings as she nears retirement that can be addressed over the coming years. 

Piggy Bank
Taxation

tax minimisation advice

Reviewing Jenny’s contribution strategies and putting a plan in place to provide more opportunities sooner

We reviewed Jenny’s superannuation contribution strategies and were able to provide immediate tax saving. However, more importantly, we formulated a multi-year plan to reach specific milestones and trigger events sooner, unlocking changes in contribution treatment and providing additional opportunity to build her retirement savings and minimise her tax before retirement. 

The Results: WHAT WERE WE ABLE TO ACHIEVE FOR JENNY?

By working with Jenny, we were able to put in place a structured plan, underpinned by a range of strategies, along with appropriate products and investments, to build her wealth and reduce her tax on the leadup to retirement.

As a result of this advice, we were able to provide Jenny with detailed and realistic financial modelling and projections around her future, giving her a clearer picture of what her retirement would look like, and what level of income she could expect to have available once leaving the workforce, allowing her to lock in a retirement date (earlier than expected) with the peace of mind that she would be able to enjoy enjoy her retirement without fear of having to go without.

Numbers Speak For Themselves!

$ 1
Reduction in personal tax liability in year 1
$ 1
Estimated additional annual return on cash holdings
1
How many months sooner Defined Benefit maximum points will be reached

HOW MUCH did this advice cost Jenny?

As part of providing Jenny with this valuable advice, we prepared a Statement of Advice document to ensure Jenny had all the information she needed to make a decision that was right for her, and then assisted her in implementing the changes.

Following this initial advice and implementation, due to the ongoing advice required to ensure the strategies ran smoothly, remained appropriate, and were adjusted as needed due to any changes in her circumstances or government legislation, Jenny entered into an ongoing advice arrangement to ensure she remained on track to meet her goals.

Value Guarantee

Still not convinced that our services may be able to provide you with the same value as our exisitng client? We understand; taking the step of reaching out for help and putting your trust into a Financial Adviser is a big step, especially when you are unsure what the outcome may look like.

That’s why we offer our Value Guarantee! 

If you would like to see what receiving advice may look like, we are able to complete some basic strategy and product modelling, and a set of financial projections to demonstrate the value our services could add to your specific situation.

If we are unable to show a benefit of over $1 (after fees) then we will refund the initial cost, and if you like what you see and would like us to provide you with full financial advice, we will deduct any amount already paid from your overall quote.

Now you can reach out for help with the comfort of knowing you have nothing to lose and everything to gain!

MORE CASE STUDIES

Important Information

Our Financial Services Guide, Adviser Profiles, and Privacy Policy can be found on our Important Information page.

Please note, the information on this page contains information that is for Australian Residents only

Making It Happen Pty Ltd trading as The Wealth Affect is an Authorised Representative of Lifespan Financial Planning Pty Ltd AFSL 229892

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