Ben and Amelia: Building Wealth for a Growing Family

Ben, 34, and Amelia, 36, are a young couple with a newborn baby, managing high incomes—Ben earns $180,000 annually, while Amelia, currently on maternity leave, earns $160,000. They own a home valued at $1.2 million with an $820,000 mortgage and have $70,000 in cash. Despite their substantial earnings, they feel their wealth isn't growing as expected and seek professional guidance to make significant financial progress.

• Effective Wealth Management: How to delegate financial planning and management to see a meaningful increase in wealth.
• Long-Term Impact: Understanding the importance of getting on track early for significant benefits over the next 20-30 years.
• Financial Planning: Optimizing cash flow, managing debt, and ensuring their child’s education is funded.
• Insurance and Estate Planning: Ensuring appropriate coverage and planning for the future.

1. Investment Bond for Education: We recommended setting up an investment bond to fund their child’s private school education. Using $50,000 from their cash reserves, and contributing $150 per week ($7,800 annually), this investment bond is projected to be worth over $550,000 in 15 years, providing a solid foundation for their child's educational needs.
2. Cash Flow Optimization: Conducted a comprehensive cash flow analysis to identify opportunities for optimization. We directed surplus cash flow into both the investment bond and a diversified investment account.
3. Investment Strategy: Implemented a diversified mid-to-high growth investment strategy in the investment account to build wealth over time. The approach balances growth potential with risk management, tailored to their financial goals.
4. Debt Repayment: Allocated surplus cash flow towards accelerating mortgage repayments to reduce debt faster and decrease interest costs.
5. Superannuation Maximization: Advised on maximizing superannuation with a high-growth investment strategy. This approach aims to build a substantial retirement fund over time.
6. Insurance and Estate Planning: Ensured comprehensive insurance coverage, including life, total and permanent disability (TPD), and income protection. Updated wills, binding death nominations (BDNs), and powers of attorney (POAs) to secure their family's future.
7. Regular Reviews and Management: Scheduled regular reviews to track progress, optimize strategies, and adjust as needed. Continuous management ensures that Ben and Amelia stay on track with their financial goals and make necessary adjustments as their situation evolves.
8. Professional Partnership: Committed to working closely with Ben and Amelia throughout the year to provide ongoing support and guidance, ensuring they make informed decisions and achieve their financial objectives.

• Strategic Wealth Growth: The investment bond and diversified investment strategies are designed to build substantial wealth over time, supporting their long- term goals.
• Optimized Cash Flow: Efficient allocation of surplus cash flow enhances their ability to manage debt, invest in their child's education, and grow their wealth.
• Financial Security: Comprehensive insurance and estate planning provide peace of mind and financial security for their family’s future.
• Informed Financial Decisions: Regular reviews and professional management ensure Ben and Amelia stay informed and on track with their financial plans.
• A Path to Long-Term Success: Ben and Amelia’s proactive approach to financial planning sets them up for significant long-term benefits. By addressing their current needs and planning for the future, they are well-positioned to achieve financial security and enjoy the rewards of their hard work.