Asset Building Case Study
Client situation:
| Situation | Bob | Jane |
|---|---|---|
| Age |
32
|
27
|
| Salary |
$90,000 p.a.
|
$60,000 p.a.
|
| Apartment |
$400,000 with $300,000 mortgage
|
|
| Shares |
$15,000
|
$0
|
| Super |
$70,000
|
$25,000
|
| Health |
Good health
|
|
| Children |
Jane is currently pregnant
|
|
| Insurance |
Adequate general & no personal insurance
|
|
Our Advice
- Work out a saving plan.
- Focus on paying down debt with the view of upgrading to a family home at some stage.
- Consider the need for asset protection.
- Consider government schemes.
- Consider salary packaging (unlikely to salary sacrifice superannuation).
- Estate planning including superannuation assets which do not form part of a person’s estate, Enduring Powers of Attorneys, medical directives, etc.
- Establish personal insurance to protect Bob, Jane and their future children. Structure the insurance to ensure maximum tax deductibility of premiums.
