Baz & Anne reach financial independance: a case study

The situation

In 1994, Baz, (38) * worked full time for a mining company and Anne, (36) * worked part time, with 2 children at primary school. They owned their home and were saving $2,000 per month after living expenses. They had a clear goal upon Baz turning 55; they wished to travel Australia by road. However, it was also important to them to finance their children’s tertiary education.

The solution

Baz and Anne wanted to make the right decision with their savings and sought the guidance of Alman Partners. After analysing the couple’s financial position, helping them set goals for the future and understanding their personal values, Alman Partners drafted a financial roadmap. Below are just a few of its features:

  • To accumulate wealth, they utilised equity available via their home by implementing a sensible level of investment borrowings (incorporating contingency strategies) as well as a regular monthly investment; The lump sum borrowings and monthly investment were invested into a well-diversified growth portfolio (100% shares and property) with a time horizon well over 10 years.
  • Baz contributed a further 5% to super pre tax, with his company matching this above the 9% superannuation guarantee amount
  • The couple held very little insurances so sufficient insurances were established to ensure that in an untimely death, accident or illness the family was protected financially.
  • They established Wills and Enduring Powers of Attorney with their legal specialist.

Life now

The couple are now age 55 and Alman Partners just received an email from them saying how much they are enjoying their travels in the N.T. As Baz explains, “We know that we can enjoy our travels without having to know what the markets are doing today or tomorrow. Thanks to Alman Partners our investments are set up in a way that supports our ultimate goal of travel and ensures we can support our lifestyle needs throughout retirement.  Alman Partners put our financial house in order and have kept it that way, giving us peace of mind.

*Names have been changed to protect the individual’s identity.