Pre-Retirement Case Study
Client situation:
| Situation | Bob | Jane |
|---|---|---|
| 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 planning, 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