Case Study 1: Pre-Retirees
Introduction
Andrew and Nicola Forrest are a married couple preparing for retirement. Andrew, 60, is a full-time CEO earning $140,000, while Nicola, 54, is a part-time child care worker earning $38,000. Their total income is $178,000, with annual expenses of $156,000, including a $550,000 mortgage. They own a $5 million home and have total assets of $6.2 million, including $779,251 in super and $339,755 in investments. Their goals include optimising super, reducing tax, becoming debt-free, and securing a comfortable retirement when Andrew turns 65.
Recommendations
Key recommendations include consolidating super, implementing a Transition to Retirement (TTR) strategy for Andrew, boosting Nicola’s super via spouse and non-concessional contributions, and establishing a $20,000 cash reserve. Additional steps involve liquidating investments to fund super, cancelling insurance, and reviewing estate plans. The strategy also includes options to optimise Centrelink benefits.
Modules covered
- Current Position:
- Fact Find
- Advice:
- Strategy Builder (iff Modeller)
- Finalise Advice
- Integrations:
- ProductRex