Financial Management Strategies to build an extra $1.5M over 15 years, from just $200 per week

About Jason & Clare:

Jason & Clare are a married couple in their early 40’s with a combined annual income of $100,000, a home worth $600,000 (with an outstanding loan of $300,000) and combined superannuation balances of $120,000. They felt comfortable with their position but were concerned that they may still fall short of having enough assets and passive income when they stopped working full time, to support their current lifestyle.

What Happened:

Steps taken – Jason and Clare used our Financial Management team to review their situation at no cost, to model an asset accumulation strategy where they were presented with a broad range of combined strategies (debt management, direct property, geared shares, salary packaging and superannuation improvements). This allowed them to comfortably target the following outcomes, over a 15 year period, from a commitment of just $200 per week:

  1. Their home loan paid off 6 years earlier
  2. An additional $1.5M in assets
  3. Full insurance cover for their incomes and debts built into the $200 per week cash flow commitment
  4. All of the financial management fees built into the $200 per week cash flow commitment.

What Jason says:

I honestly thought Clare and I were doing the right thing with our home and our financial approach. However, when we reviewed our situation we saw that we had a major “asset” gap regarding what we needed when we eventually stopped working full time. There is no way that saving $200 per week (or just allocating an extra $200 per week into our home loan or super) was going to give us the extra $1.5M in 15 years’ time that our new financial management strategy gives us. The strategies AVB’s Financial Managment team modelled for us were very broad and were easy-to-understand and weren’t anything like what other advisors have spoken about to us in the past (where they just wanted to sell insurance or managed funds to us).

Saving more tax and buying a few more assets has now become just as easy for us as if we were simply putting aside $200 per week. Many thanks AVB

Key Results:

  • Their home loan paid off 6 years earlier
  • Additional $1.5M in Assets
  • No additional fees for management or insurance

If you would like to see how our Financial Management Team can assist you to model a ‘combined’ strategic investment approach similar to Jason and Clare’s then please contact us for a no cost review.

Disclaimer: The case study mentioned above is purely for illustrative purposes and should not be relied upon (or acted upon) in any way. Readers should seek professional advice before acting on any of the information in the case study above. All general advice in this case study is provided by Luke Russell sub-authorised representative of Financial Management Partners Pty Ltd as trustee for The FM Trust (ABN 50 743 553 476) Corporate Authorised Representative (No. 440627) of GPS Wealth Ltd AFSL 254544 ABN 17005 482 726