Private Wealth Financial Planning

WHY (the challenge)

Nexus was approached by a local WA couple in their early 60’s to help them achieve some high priority goals and objectives which were :

1. Pay off their mortgage debt of $275 000 as soon as possible
2. Review their investments and financial strategies (including super) to ensure they were appropriate for helping the couple achieve their goals
3. Review their existing personal insurances to ensure they were appropriate, in relation to: Cover types, Cover levels and Cost Benefits
4. Increase their retirement savings and build wealth between now and retirement, with a retirement income target of $52,000 pa (in today’s dollars)
5. Review their estate plan in terms of how they wanted their assets to be managed and distributed in the event of death or incapacitation, and ensure all current arrangements reflected this

HOW (our tactics and strategy)

Nexus offered a complete Private Wealth Financial Planning services strategy in the six key areas of:

• Financial Management – Cash Flow – Entity structures – Taxation
• Risk Management – Personal and business protection
• Investment Management – Passive or active
• Wealth Creation – Cash, Property and Shares
• Debt Management – Effective and efficient disentanglement of assets and debt restructuring
• Estate Management – Personal Wills and EPOA

In order to identify, construct and deliver high level advice, our advice process covered 4 major stages where we were able to confirm actions and ensure accountability from all parties, resulting in the best outcomes for our clients.

We recommended that the couple refinance their current mortgage which meant a new loan at a lower interest rate. This saved them approximately $2107 pa. It was also recommended that they use their surplus cash flow to increase the loan repayments to pay off the loan sooner and utilise a mortgage offset account which would enable them to draw on fund when needed.

A rollover of existing super benefits was done to ensure the super funds would be invested into a product that suited their needs. Further self employed super contributions were made into their existing super which would increase their super and reduce income tax.

Personal insurance changes were put in place which would help reduce the financial impact on the couple as well as their family in the case of the unforeseen.

Their wills, binding death nominations and reversionary beneficiaries were reviewed and updated, as well as an Enduring Power of Attorney and an Advance Health Directive was created.

WHAT (the outcome)

Today, the couple enjoy certainty for themselves, their assets and the people most important to them

This is based on a real client experience. Names and details have been changed.
This advice may not be suitable to your requirements. Please consult with a financial planner to discuss your requirements.