Joel & Kim

Age Group 30- 40 years old

Financial Goals:

  • Purchase an Investment property
  • Review Super fund
  • Review and update Life insurances
  • Increase payments on principle mortgage if possible

Joel and Kim have been married for 9 years and have one child aged 3. Kim returned to work 12 months ago as an accountant with an income of $62,000 and Joel is a sales manager earning an income of $85,000.

Joel and Kim found that they now have significant additional income coming into the household budget due to Kim returning to work. Having lived on one income for the last few years the clients wanted to make sure this extra income went as far as possible, they had just signed a contract on their first investment property. They had also allowed room in their budget to make additional weekly repayments on this loan.

Knowing it had been sometime since they reviewed their home mortgage, they were keen to review it as they applied for their new loan. Joel’s income had substantially increased in the last 5 years, and now having multiple large debts, it was time to review their insurance.

Joel & Kim’s super balance’s had taken a battering from the recent Global Financial Crisis (GFC). They wanted to review their portfolios and make sure it was still appropriate for them. They had a financial adviser years ago but had not heard from them for a long time.

What CMW did to help them achieve their goals:

  • When Joel and Kim approached us to talk about purchasing an investment property, we immediately booked them in for a review of their existing arrangements and to discuss some planning around what they wanted to achieve. The Financial Adviser  explained to Joel and Kim that it was better to pay off the Home mortgage first, instead of the investment loan, as that would help minimise the tax they had to pay each year.

The CMW advisers helped Joel and Kim borrow the funds to purchase their new property. They were able to use some of the equity in their current house for the deposit on the new investment property. They correctly structured both loans to maximise tax deductibility on the investment loan, and by refinancing the existing loan, Joel and Kim were able to save an additional $203 per month on their repayments. This amount they would continue to pay on their home loan, to reduce this mortgage as quickly as possible.

  • Now that Joel and Kim had two loans to pay for, and also a child since they last reviewed their insurance needs. It was important that a new insurance plan was put in place. Given the change in their situation Joel and Kim were now grossly under insured.

After performing a full insurance review, the Financial Planner recommended an increase in Life cover for both clients as well as the addition of Total and Permanent Disability (TPD) insurance. In the event that either of them should suddenly pass away or suffer from a TPD event, they knew their family would be taken care of financially in either of these circumstances. Structuring the insurance inside super, left them with enough cash flow to service both loans in full, and some money left over to be invested for future income for the family.

Since the last insurance review Joel had also received a few pay rises and now found his Income Protection policy to also be under insured. The Financial Planner also noted that the family was now relying on both of their incomes in order to service the loans, pay for day-to-day living, and invest for the future. We were able to help them increase Joel’s Income Protection policy, and start a new policy for Kim, structured so that both were tax deductible against their income, significantly reducing the cost.

  • When Kim said she knew they would not have to access their super fund for a long time, and they were comfortable taking extra risk for extra reward. The Adviser helped them move into a more aggressive high growth portfolio, which left their total investment situation more in line with what they wanted to achieve long-term.
  • Joel & Kim are ongoing clients of CMW Financial Services which we continually review to make sure they are on track to become financially independent and retire wealthy!

What we can help you achieve

  • Tax optimisation – reduce your tax bills!
  • Mortgage and debt elimination – pay your mortgage off faster!
  • Performance review of your current superannuation
  • Finding the best insurance cover & protection at the lowest price to suit you
  • Your risk profile – We find the best investment solutions to suit you
  • Helping you achieve your current life style & retirement objectives, in a comfortable manner