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Maintaining Life Assets

Welcome to Maintaining Life’s Assets. You are now wondering whether you will have enough money in retirement to ensure you have an adequate lifestyle

Life Insurance

We have been working with Rodney and Julie over many years. They have recently paid off their home loan (bad debt) and continue to grow their other investment assets which are now producing substantial income. Before long the investment income will pay out their investment loan facility (good debt) and then continue to add to their retirement assets.

We reviewed Rodney & Julie’s investment planning strategy, adjusted their asset allocation to reflect their goals and objectives. They are likely to live another 30 years in retirement.

We developed a strategy for Rodney & Julie around the timing of the sale of their investment property, and how they could minimize their capital gains tax liability.

We maintained some Life, Total Permanent Disability and Trauma insurance policies, to ensure the couple could stay together with the help of a full time nurse if anything was to happen. As the couple accumulated enough retirement assets these policies were cancelled.

We commenced a Transition to Retirement Strategy which included establishing an income stream with a portion of their existing super funds, together with a salary sacrificing arrangement with Rodney’s employer. This added significant additional funds to his super balance and reduced his income tax from employment at the same time. The reduced income from employment was offset by the income stream meaning no change to their existing lifestyle. The tax saved from salary sacrificing into super, meant they could seriously consider that Alaskan Cruise they always dreamt about in retirement.

We arranged for updating of their wills as these were last done when the children were still at home. The new Wills now make provision for the grandchildren. They appointed one of their children as executor to their estate, and as a Power of Attorney.

Rodney and Julie now have a new lease on life, knowing that the strategies they have put in place have made them financially secure leading into their retirement. They will not end up living in a granny flat out the back of the children’s house. They will not be relying solely on a Centrelink benefit at age 65, although we were able to arrange for a partial benefit so they could access subsidies on their prescriptions, phone, rates etc.

Disclaimer: The information contained in this article is of a general nature only. It does not take into account your particular objectives, financial situation or needs. Before making an investment decision, you need to consider, with or without the assistance of a financial adviser, whether the information is appropriate for your particular needs, objectives and financial circumstances.