SD Wealth Case Study001 - Is It Too Late 16.9.pdf

In this Case Study we look at a couple who are planning to retire in approximately 7 years and are concerned about their financial situation being strong enought to retire comfortably.

1. Case Study #01
“Is it too late?”

3. The Client Problems
Mr & Mrs had no coordinated retirement plan.
Unable to have peace of mind about their
retirement future.
Unsure of next steps to take.

4. The Client Status
The Financials
Mr Mrs Income Tax
Income
12,000 p.a.
Part Time
$120,000 p.a.
Full Time
Expenses $90K $29K
Assets Liabilities
Home $850K Mortgage $109K
Savings $11K
Investments $20K (Shares)
Superannuation
Mr $160K Time To Retirement7 years
Mrs $560K Lifestyle Income $90K (indexed w/CPI)

5. The Client Objectives
Objective #1 – Retirement Planning
•Mr retire in 2 years; Mrs retire in 7 years
•Generate inflation adjusted income $65K pa in retirement
Objective #2 – Income & Debt Management
•Maintain lifestyle expenditure at current levels next 7 years
•Would like to pay down home mortgage over next 7 years
•Mrs ideally like to move to 3 days per week in 5 years
Objective #3 – Estate Planning
•Ensure valid POAs in place in case of incapacity
•Ensure Super nominations in place for death benefits as desired

6. The Strategies
Strategy Mr Mrs Both Better Position
Start pension in FY25$8K per year $8K pa tax free income
Increase mortgage
payments
$16.5K pa
Pay out mortgage prior to
Mrs retiring
Concessional Cont. Cap
$30k pa until retires
$14.6K pa until retirement
Receives $4.5K tax
deduction yearly
Carry Forward
Concessional Cont. in FY24
$23.6K
Increases Super
Receives $7K tax
deduction
Establish Binding
nominations in Super
100% transfer of Super on
death
Protects Super from
potential taxation

7. The Outcomes
Objective #1 – Retirement Planning
•Mr – $8K income annually from Account Based Pension
•Mrs – On track to retire in 7 years
•Both to have $65K retirement income in today’s dollars in 7 years
Objective #2 – Income & Debt Management
•Can maintain lifestyle expenditure at present until retirement
•Home mortgage will be zero in 7 years prior to Mrs retiring
•Flexibility to go to 3 days per week and stay on track with goals
Objective #3 – Estate Planning
•Referral to estate planning specialist in our network
•Coordinating the POAs and Superannuation binding nominations

8. We help our clients
plan, protect, grow and enjoy their wealth
Creating strategies to reach their long-term
financial goals.
What We Do Well

9. Areas covered:
•Savings
•Investing
•Retirement
•Centrelink
•Structures
•Taxes
•Estate Planning
•Passing it on (Philanthropy)
What is ‘Financial Planning’? (S.I.R.C.S.T.E.P)

10. Can we assist you?
Contact me personally via my LinkedIn profile or our office on 03 9894 2500.
You can also visit us at
Saward Dawson – Wealth Advisory

11. SAWARD DAWSON WEALTH
Saward Dawson Wealth provides strategic wealth and investment services to
charities, businesses and private clients.
Our driving purpose is to help our clients achieve their most important aspirations,
creating legacies that will positively impact their families, communities and
future generations.
We bring fresh ideas via a rich network of professionals, blending a unique range
of insights drawn from decades of advice and dedicated service.
Saward Dawson has set the gold standard for quality advice and service for over 40
years, with many of the adult children of our original clients continuing to retain
us as their trusted advisers.