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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 contacted Chris Humphrey Private Wealth Management through a website enquiry seeking professional advice including a life insurance review. Chris took the time to fully understand my financial position, goals and needs to provide me with timely, relevant and easy to understand personal advice. This allowed me to make an informed decision about the types of insurance I really needed, my appropriate levels of cover and how to structure my cover to get the best value for my money."

Carmel White