Gen X & Gen Y
People aged between 35—49
At this stage of life you are well underway with your career and have established financial foundations. You may have a home loan or an investment property or two and your main challenges are trying to juggle your busy work / life commitments.
You are time poor in nature and although you are not a novice at financial matters, you know that you need somebody to review everything and pull it all together in a co-ordinated and holistic manner. You know you could be doing better with your money and generally be more productive with your finances. In other words, there is currently wastage and you know it.
There are things in the back of your mind that you need to attend to but never seem to get around to doing them. Your super account could be doing better, maybe a self managed fund that you've heard about should be explored? You could also budget better and save more each month either into your offset account or into a portfolio of investments.
But as you do not set and review financial goals on a regular basis, you are not disciplined with your finances and reading books such as the barefoot investor provides you with many great takeaways, but without the guidance of a professional to shape the framework for a personalised financial strategy with specific future goals laid out, you are still underperforming your financial capacity.
If you work for a technology company, you may have share options and restricted stock units and given the large tax burden, want to look at ways to reduce this tax such as family trusts which you’ve heard some colleagues talk about.
Or you might be a self-employed dentist or lawyer and want to make sure that you have the right structures (trading company, family trust, bucket company etc) to protect your assets and legitimately minimise tax on your wages and profit.
But regardless of your employment status, you would benefit from advice to optimise your current situation and move forward with clarity and a plan, where you are kept accountable to the agreed milestones.
Or it could be a life event such as starting a family that kicks you into gear and realise you need to sort out your finances. Others need to rebuild after a divorce or work out what to do with an inheritance.
Whatever the situation, in this age group, earning capacity is nearing peak levels and as such, tax paid is also high. It is also a time where your living expenses are likely to be at the highest they’ll ever be. You may have children with education costs, otherwise overseas travel costs and general living expenses eat into your strong cash flow and you sometimes wonder where all your money is going!
But don’t fret, we’re experts in helping people in your situation and encourage you to take the first step and get in touch with us. We’ll workshop some ideas and start to help you get on top of the finances and move forward in the right direction with clarity and a plan.
Case study
Stephen and Mary are in their mid 30’s and have 2 young children. Stephen works full-time and Mary part-time. They have a household income of $500,000 and home loan of $1,500,000 with $500,000 in offset. They have many lifestyle and financial goals they wish to achieve but are unsure about the best way to plan for the future to maximise opportunities and reduce tax.
After going through the financial roadmap process, Stephen and Mary received advice in many areas such as how to accelerate debt repayment, review of their household budget and cash flow management strategies, setting retirement goals, starting to invest on a regular basis (including tax effective children's education plans), tax optimisation strategies including a review of potential investment entities from individual name, family trust and investment company, consolidating and employing a consistent investment strategy for their investments (which includes direct investment property, private equity and shares), implementing appropriate insurances and implementing Wills and Powers of Attorney and Guardianship.
Stephen and Mary are now on track to accelerate the repayment of their home loan and have enough cash available to meet all planned expenses such as catholic schooling for their children, property renovations and an overseas holiday every year in addition to building wealth through their new investments in a tax effective way.
Although they are only a few years into their financial plan, they are now on track to accumulate substantial assets and may be able to retire in their early 50’s.
Testimonial
“Without FinancialAdvisor.com.au we would probably still be treading water and not getting ahead financially but now we are excited about the future. We now have a structured step by step plan that we understand and can follow so that we start to work towards getting to be where we want to be in the future. We are grateful for FinancialAdvisor.com.au's help and advice.”
Stephen and Mary (surname withheld)