Martin and Sandra: Achieving a Sustainable Retirement Income
The situation
Martin (60) and Sandra (58) are looking forward to retiring within the next two years. With a home valued at $1.8M, an apartment worth $200K, and $1.2M in savings, they want to ensure their wealth is protected and can provide them with $1,500–$2,000 per week until they’re 90. However, they’re unsure if they have enough capital to last 30 years and are concerned about how to invest their savings while suppressing risk.
Concerns
- Will we have enough to live comfortably for the next 30 years?
- How do we protect and grow our wealth while reducing risks?
- How can we make our savings work harder for us, especially with low bank interest rates?
Our approach
We immediately moved $1.2M into Sandra’s name (due to her lower tax bracket) and consolidated their multiple super funds into a platform that allows for greater control, transparency, and diversified investments. By carefully structuring their portfolio across a mix of asset classes, we balanced growth with risk mitigation.
We also advised Martin and Sandra to remove unnecessary insurance policies, saving them $12,000 per year, and to utilize both concessional and non-concessional contributions to boost their retirement savings. With sophisticated financial modelling, we mapped out the best time for them to sell their apartment and how to allocate surplus funds without compromising their desired retirement income.
The benefits
- Clear Retirement Plan: Martin and Sandra now have a clear, tailored financial plan that generates $1,500 per week in retirement.
- Increased Control: Consolidating super accounts gives them greater oversight and peace of mind over their investments, as well as enhanced products.
- Tax Efficiency: By shifting funds into Sandra’s lower tax bracket and using smart super contributions, we’ve reduced their tax obligations.
- Freedom to Enjoy Life: With our plan, they can travel and spend $20K annually while feeling secure about their financial future.