Success Stories

The success stories are located elsewhere in this site, but have been collated here for your convenience:

Sharon’s Pre-Retirement plan -
Turn $109,000 into an anticipated $491,000 in 8 years.

Sharon was school teacher, single mature mum aged 57, on $85,000 p.a. with a modest but decent superannuation fund. She also had another older fund with higher fees and an exit fee.

Following discussion, we agreed to amalgamate the funds, wear the exit fee and implement a Transition to Retirement Strategy (TTR). This is available for those between 55 – 65 and still earning income.  It was commenced right in the middle of the GFC, 2009.

Sharon took an ongoing advice package, and took necessary advice tweaking the strategy each year, with a major revamp late in year 3. The results speak for themselves. Total retirement fund increase by 100%, with a projected further increase of another 100% by year 8.  

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Johan & Lisa’s  – Superannution built from $260,000 to $511,000 in 6 years.

Johan & Lisa were both working, Johan as a senior manager and Lisa as a part time casual. Johan’s super was worth about $260,000 back in 2007, with only some limited additional contributions added into his Super. Lisa had a small sum of $20,000.

The strategy recommended was to use a Transition to Retirement Strategy
(TTR – as above for Sharon) and increase the Superannution contrbutions.
Additionally,  following the big hit of the GFC, the investment choices were radically changed to capitalise on the bounce from 2009 to late 2012. 

Spare funds which could not be salary sacrificed due to the recent $25,000 limit on deductable contrbutions, most recently, were invested elsewhere outside of superannuation. The total Supernnuation component was $511,000 at the time of full retirement in early 2013.

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Carl & Lyn – Rationalising investments and becoming far more focused.

Carl & Lyn are 48 and 44, with a small mortgage and 2 late stage teenagers, one in high school and one just starting Technical College.

Carl Earns $70,000 in IT as a Programmer;  while Lyn earns $30,000 year as a part time teacher.

The mortgage is only $40,000 but the house is worth about $650,000, this is their third. They worked their way up the value tree by buying and doing up each house as they went, Carl is a reasonable home handyman.

They have acquired a number of disparate insurance policies with different companies, an old investment bond (originally started as an investment strategy 17 years ago), and a half a dozen superannuation policies (all in contradictory investment strategies cancelling one another out).

The combined income after tax is $82,000 but is all spent on usual living expenses, and mortgage with only small savings to show.

Our recommendations in this case were as follows:

  • Rationalise the insurance policies and lower the payments being made. Look to move some insurance inside super.
  • Consolidate the super and choose 1 common strategy for both partners.
  • Use the funds in the investment bond as tax effectively as possible transferring the tax benefits into other investments, tax effectively.  Saving 15% upfront – that is as good as a 15% return in year 1 alone.
  • With identified surplus income now focus on eliminating the remaining mortgage at a faster rate.

In 3 – 4  years the mortgage will be eliminated and with the kids both “off their hands” Carl and Lyn will commence an early version of the 55 – 65 year old’s strategies.

One option we recommended  - that they decided against – was to sell the newish car (3yrs old) for $20,000 and buy an older but lower cost car for $12,000.
The $8,000 savings would assist with paying off the mortgage more quickly and then focus on the Superannuation a few yaers ealier than originally planned.