The Client …
John J, who is 42, currently works as a Supervisor in an Infrastructure Company and earns around $85,000 per annum. He is married to Jenny J who works at a local high school earning approximately $21,000 per annum. Their two children are grown up and support themselves.
If we considered all of the Js assets and debts (excluding superannuation) they had net assets of around $185,500.
The Problem …
The Js were rolling through life with no set plans about paying their house off or retirement. Their mortgage was coming down slowly but they didn’t feel they were really progressing. Sure they had superannuation but their personal finances were not building. This concerned John and Jenny.
The Process …
During the various discussions with John and Jenny we uncovered that the things that concerned them were
- Paying off the mortgage
- Surplus cash flow was not being saved
- Be sure retirement was secure and
- They want to enjoy their lifestyle and be able to play golf and visit family whenever it suits in the meantime.
The Solution …
By restructuring their loans we were able to use some of the available equity in their property to commence an investment.
John J also increases his investment every month with a regular investment strategy.
Tax savings were taken into consideration and the investment was placed in John’s name.
The Js have been very focused on improving their financial outcomes during the past 11 months and have really committed themselves to their Financial Plan.
The Outcome …
Less than 12 months later the Js have increased their net assets to $220,974—that’s an increase of a whopping $35,474 in 11 months just simply by having a plan for the future and a strategic approach.
All of this was achieved through some creative restructuring and investing and harnessing their cash flow and tax savings.
When asked how they felt about their progress John and Jenny said they wouldn’t look back and recommended that people see us to achieve the same peace of mind they now have.
Fictitious names have been used in this true Case Study to protect the privacy of our clients.