Making dreams possible with financial advice
I recently worked with a lovely Sunshine Coast couple, Sally and Ted, who had a dream lifestyle that they weren’t sure how to realise. Here’s how financial advice made it possible.
The dream
Ted is a FIFO worker and they both love to travel in their caravan whenever possible. They dreamed of traveling around Australia whilst working around Ted’s FIFO working arrangements. This would mean they would travel when Ted was off, and he would then fly in and out to work from wherever they happened to be at that time. Their ideal was to do this for the next 2-3 years.
I met Ted and Sally after they sold their Sunshine Coast property, which cleared all debts and left them with approximately $1 million to invest. They had decided that they didn’t want the hassle of tenants and property maintenance whilst traveling, and they weren’t committed to returning to the Sunshine Coast after their traveling adventure. For Ted and Sally, this was the opportunity to focus on living in the now but wanted to have a plan to ensure the future was still being taken care of.
The plan
Ted and Sally came to see me to discuss their goals and broader plans, and how they might have investments in place to help ensure growth over the longer term whilst still maintaining liquidity and access to capital in the event of an emergency.
As part of our holistic review we worked through their primary objective but also identified other elements that could contribute to their broader goals. This included:
- Ted had multiple superannuation accounts, and we were able to consolidate this into one single account. Not only did this help reduce Ted’s fees, we also ensured his underlying investments were aligned with his overall risk tolerance and were able to consolidate administration to one fund.
- Ted & Sally both had very expensive life insurances that had provisions for clearing a home mortgage in the event of a claim. As they are now debt free we were able to review their personal insurances to help ensure it aligns with their current needs and therefore save them a considerable amount of money each month.
- Sally was really happy with her superannuation fund, so we maintained this account. However the underlying investments didn’t reflect her attitude towards risk, so we were able to help her align her underlying investments to her preferred tolerance.
- Both clients had very outdated estate planning and we educated them and assisted them with getting their wills and Enduring Powers of Attorney updated prior to their departure.
- As their costs of living are dramatically lower than the income Ted is generating from his employment income, they continue to save money. We were able to work with them to help invest the surplus income towards their longer term retirement plans.
The outcome
Ted and Sally are happily traveling and loving their new lifestyle, and their wealth continues to grow whilst they live their dream. And though they miss their kids (all adults), they don’t miss them enough to stop! Both Ted and Sally are comforted knowing they have access to their capital if and when needed, or as their needs may change in the future. Their strategy remains flexible and can be adapted any time their goals or circumstances change, giving them complete freedom and control of their financial position.
In addition, as a result of our holistic planning, they are now in a better position than what they initially thought and can relax and enjoy living their dream.
If you’d like to discuss your goals and plans and how to make them happen, please contact Luke at Propel Financial Advice.
