Under 45 years of age – Young Achievers

Under 45 years of age and you hear yourself – or your friends saying things like….

  • “Wish we could build a good investment fund that doesn’t involve too much scraping….”
  • “How do I pay for the school fees painlessly …”
  • “We would like to buy an investment property – but not be too negatively geared …”

Your income is still rising through new jobs and promotions and you are looking for options to make your way and keep what you will acquire.

 

Case Example I:

Annette & Jason are in their mid-late 30’s with 2 young boys. Jason works Full time in highly skilled IT based role earning $120,000 p.a. Annette is currently not working, but hopes to return to part time work when the youngest boy is in 3rd year primary school. They have a nice house worth $650,000 with a mortgage of $550,000. They both have some super scattered in a few places with Jason’s being a total of $90,000 and Annette’s $25,000. They came to us to work out how to reduce the mortgage and possibly acquire an investment property.

  • We proposed a number of budget steps, refinanced the mortgage at a lower rate and using the difference recommended some low cost insurance that by being started now would be low cost for many year to come.
  • We also looked at their wills and powers of attorney and raised significant questions such as – who would look after the boys in the event that both Jason and Annette died due to an accident?  Are their wishes for the boys written anywhere? Who has the authority to look after the insurance payout on behalf of the young boys?
  • The mortgage reduction strategy could be matched with an investment strategy that would build over time for a suitable investment nest egg, as a deposit on their investment property it would mean a lower borrowings.  Although retirement is a long way away we also consolidated their super into matching funds so that they can keep an eye on it and ensure they are allocated appropriately.