Recently, Bruce Grieve met with a couple who were looking to retire within the next year or two and, although we would ideally start the planning well before this, even at this late stage we were able to take advantage of a number of opportunities.
Although they are in a strong asset position, they have a number of large capital expenses due in the next few years and we need a strategy to allow them to meet these obligations, whilst not derailing their retirement income objectives.
They have built up a large personally held share portfolio and also a number of investment properties, one of which is earmarked to serve as their holiday home, whilst another will be retained to generate rental income through retirement.
The strategic advice put in place is to have a plan as to when the shares and selected properties are sold, as well as using super contributions to limit the tax payable, whilst allowing them to meet their capital requirements in the short term. These strategic opportunities will result in tax savings of at least $8,500 this financial year.
An important part of our advice is the research and analysis into their super funds which we identified were invested with a number of different providers and through consolidating these the clients are able to benefit from a cost reduction of approximately $5,000 annually, whilst increasing the transparency within the super funds.
Additionally, the clients have insurance in place and through our analysis, we calculated that this was no longer required resulting in a savings of over $25,000 per annum when this is cancelled.
Lastly, through our comprehensive modelling, we were able to illustrate the impact of retiring now or in a year so they are empowered to make an informed decision about the best step forward for them.
We’re looking forward to putting the plan in place and helping them focus on enjoying their retirement without needing to stress over their finances and how they will fund their retirement.
If you would like to access the same level of financial advice, contact our office at 02 4940 6100 or email us at ua.moc.syeltneb.cwen@nimda to organise a meeting