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Pre-Retirement Case Study

Client situation:

SituationBobJane
Age 58 53
Salary $120,000 p.a. $80,000 p.a.
House $800,000 with $120,000 mortgage
Shares $15,000 $55,000
Super $320,000 $160,000
Health Good health
Children Chloe age 22, Isabel 18 and Oliver age 25
Insurance Adequate general & personal insurance

Our Advice

  • Ascertain desired spending requirements in retirement.
  • Ascertain whether Bob and Jane want to preserve capital during retirement (so that capital can be transferred to their children and/or grandchildren).
  • Determine ideal retirement ages, including semi-retirement.
  • Determine likely investments - including their capital and income characteristics - to determine retirement income.
  • Taper personal insurance as their retirement nest egg increases.
  • Consider pre-retirement strategies such as Transition to Retirement Superannuation Pensions, spouse superannuation contributions splitting etc.
  • Consider wealth creation through gearing.  If a strategy of gearing is adopted, determine whether it should be within or separate to superannuation and if a mortgage reduction strategy should be utilised.
  • Tax minimisation, including considering establishing a family trust and placing more funds into superannuation.
  • Superannuation salary sacrificing.
  • Estate planning, including superannuation assets which do not form part of a person’s estate, Enduring Powers of Attorneys, medical directives, etc.

" I have been very impressed with the service that Chris Humphrey has supplied. He was able to take my complicated tax and insurance situation and provide a clear and concise investment strategy. The personal service that Chris has given me has been greatly appreciated. "

Michael Oberhardt - Principal Geologist at Arrow Energy