When Mark and Christine came to us...
Mark and Christine were in their mid-fifties when they met.
They both had established professional careers and were raising two teenage sons.
They planned to reduce their workload once they turned sixty.
Financial security was paramount for the couple.
They were well-positioned with a substantial nest egg, investment properties, and superannuation.
However, a mortgage on one rental property was a constant drain, offsetting much of the income generated.
Their assets felt fragmented.
They yearned for a more unified financial strategy.
Consolidating properties and eliminating debt seemed logical, but concerns about potential financial missteps and significant tax implications on a profitable property lingered.
Above all, they wanted to ensure a steady income stream throughout their retirement.
The Life Plan: Initial meeting & high-level overview
Mark and Christine scheduled an initial Life Planning meeting with Simon Shepherd from Providence Advisory Group.
We discussed their current lifestyle and financial situation. Then we workshopped:
What they envisioned their ideal life to look like for the next ten years
The 3-year milestones they must aim for to bridge the gap between where they are now and where they want to be
A customised to-do list of actions to kickstart their journey toward financial freedom
The Freedom Plan: Strategy session and onboarding plan meeting
At this strategic meeting, Simon Shepherd of Providence Advisory Group effectively illustrated that their concerns, shared by both Mark and Christine, could be successfully addressed through a well-structured approach.
Simon also outlined a pathway to eliminate their income tax liability upon transitioning to part-time employment at age 60.
This strategy involved:
Strategically contributing assets to their superannuation fund.
Claiming tax benefits on these contributions.
Subsequently converting their superannuation into a tax-free income stream.
Concurrently, Simon demonstrated how to substantially curtail the capital gains tax due on selling their property.
Where they are now: Ongoing members of our Financial Freedom program
Mark and Christine sought comprehensive financial guidance from Providence Advisory Group.
Our goal was to construct a financial strategy to seamlessly transition all their assets into a tax-free superannuation income stream upon reaching age 60.
By meticulously coordinating their finances, we orchestrated a plan to sell their investment properties and eliminate their outstanding debt.
Leveraging our expertise in superannuation law, we significantly reduced their capital gains tax liability on the property sale and strategically directed the proceeds into their superannuation accounts.
This integrated approach transformed their financial landscape, aligning their bank accounts, investments, and superannuation for optimal growth.
During their working years, Mark and Christine maintained a strong savings discipline.
However, we redirected their savings into a more advantageous arena.
Instead of incurring expenses and debt on property ownership, they made tax-deductible contributions to their superannuation, effectively reducing their taxable income and substantially boosting their retirement savings.
Upon reaching 60, we assisted Mark and Christine in meeting the requirements to access their superannuation funds.
We maximised their retirement income by converting these funds into tax-free superannuation income streams.
This passive income now surpasses their previous earnings from employment, providing them with financial freedom.
While Christine has scaled back her workload, Mark still maintains full-time employment.
To support him in this significant life transition, we have connected him with a retirement coach to help him navigate the emotional and mental aspects of retirement planning.
Disclaimer: This blog post is intended for general information purposes only and does not constitute financial advice. It’s essential to seek professional advice tailored to your specific circumstances.
Alternatively, if you'd prefer a personal touch, book a free 15-minute consultation here to discuss your specific situation and explore how to optimise your retirement plan.
Find out more about how we can help: https://www.providencegroup.com.au/retirement-planning-services
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