Just some of the dreams we've helped make come true
How we helped John and Juliette out of severe financial distress and on the way to financial freedom
John and Juliette’s situation
John and Juliette came into our office three years ago. They had three investment properties, their home and a moderate amount in super. Their dream was to retire in 5 to 10 years’ time.
They seemed to have everything under control but this was simply not the case. They had a huge amount of investment debt and also owed a significant amount on their family home. They were extremely stressed, were each arguing that the other was spending all the money and they couldn’t pay their bills.
Retirement seemed a long way off.
We put in place a plan to get them out of debt and on the way to achieving their dreams for retirement. The plan involved establishing a budget and segregating the bills expenditure from their general living costs.
We created additional cash flow to accelerate the debt repayments, saved them a significant amount of tax on the sale of one of their investment properties and created ongoing tax efficiencies.
More importantly we’ve reviewed and continually updated John and Juliette’s financial strategy as their situation evolves.
John and Juliette have paid off their home loan and were able to fund the purchase of a new car. John has changed jobs with a slight pay cut and is working much closer to home. He no longer needs to fly interstate for work and chase the money.
They still have two investment properties that are cash flow positive and are paying down debt quickly. Their budget is intact and they are well on the way to meeting their retirement dreams.
They have also been telling all their friends about how we helped them to make their dreams come true… and we are now helping their friends to do the same.
How we helped Michael and Gail enhance their lifestyle while transitioning to retirement
Michael and Gail’s situation
Gail is nearing retirement age, whereas Michael is much younger and considers he is around 10 years off retirement age.
Michael has a good paying job and Gail is working part time. They have a substantial amount in superannuation and still have a mortgage on their home.
Gail says she will work another couple of years, as she would like the house paid off before she retires. They could then easily live off Michael’s wage, as well as have the ability to keep saving.
Because Gail was at retirement age, we were able to access a portion of her super tax free to pay off the loan and save them on interest. Gail would be able to stop work and they could plan for full retirement when Michael was ready.
We then put a plan in place for Michael to continue to accumulate to super and gain access to tax concessions. We also were able to make additional contributions to super for Gail to gain access to tax concessions and other benefits such as the Government Co-contribution.
The saving in mortgage payments have been redirected to a savings fund.
Michael has accelerated how much he contributing to his super in a tax efficient manner and he is continuing to work towards their retirement objectives in 10 years’ time. In the meantime, they have done some lifestyle renovations to the house, such as extending the outdoor area and putting in a spa, using the surplus cash flow created.
Gail has now put off retirement for 18 months as she wants to save up for a caravan so they can travel around Australia. Michael has done some salary packaging to buy a new car so they can tow the caravan.
Gail and Michael have been able to make substantial lifestyle changes. Gail is no longer working because she feels she needs to pay the home loan off. She is continuing to work because she chooses to, and so they can improve their lifestyle.
How we helped Anthony and Bridget retire with confidence
Anthony and Bridget’s situation
Anthony and Bridget live very frugally and are not very confident with finances. Anthony had worked in a blue collar State Government job all his life and accumulated a significant amount of superannuation through a defined benefit scheme. Bridget worked part time as a medical receptionist, where everyone felt she was part of the family, and had also accumulated some super.
They had a significant amount of cash in their bank accounts, that was getting a minimal amount of interest on it.
Anthony’s friend and colleague had been a client of Infineight Financial for over 10 years and we had helped him retire comfortably. Anthony was unsure about seeking advice and finances in general but took comfort that his friend had a good experience. Anthony doesn’t live on the Central Coast though; he drove 2 hours each way for an initial meeting with us.
We asked Anthony when he would like to retire. He said “Yesterday if I could, but Bridget wants to keep working…” We went through his assets and superannuation and told him that with some restructuring he could comfortably retire as well as being able target some tax concessions. Anthony almost skipped out of our offices, drove the two hours home and brought Bridget back for a second meeting a week later.
We restructured Anthony superannuation, and started a tax-free pension for Anthony to replace his income. We were also able to use some of the cash they had accumulated that was not earning any income to increase the amount in his super, and get the money working for him.
We also invested the surplus cash in their personal names to provide them with additional income and cash flow.
Bridget has also retired, and we have restructured her superannuation to start a tax-free pension. We have restructured their other investments to ensure they don’t pay any tax. They are not eligible for the age pension but we were able to get them access to a concession card, which provides them with a range of benefits such as cheap pharmaceuticals.
The income from their pensions is actually more than the income they were receiving when they were working and the portfolio is continuing to grow over time. As a result, their income should also continue to grow over time and they can also use the surplus cash flow to help out their family.
Anthony and Bridget have more time to be with family and they regularly babysit the grandkids. Anthony has purchased another steam engine and has been restoring it. He has also had time to take his engines to regional events so others can enjoy his hobby.
They are sleeping comfortably at night in the knowledge that they will have more than enough money to retire on, their investments are safe and being managed for them.
They also recommended their son seek some advice. He is now working towards his financial freedom.