Michael (42) and Emily (40)
Michael and Emily have three young children, and both admit they haven’t paid enough attention to their finances. The couple have focused on paying off their mortgage, which is all they thought was required to create wealth and retire comfortably.
As a member of Active Super, Michael knew he could seek affordable financial advice from one of the Active Super financial planners, who could help him and Emily focus on their cashflow and plan for the future.
Here’s how Lisa, their Active Super financial planner, helped.
Where’s the money going?
Michael and Emily were uncertain about where the money was coming from and going to, so Lisa gave guidance on budgeting and how they could manage expenses. As a result, they found further capacity to boost their savings.
Paying down debt:
Michael was paying interest of 13.49% per annum on a $10,000 credit card debt. At the same time, the couple had around $20,000 in an everyday bank account earning next to no interest. Lisa suggested paying off the debt immediately, cutting up the credit card for good, making additional contributions to super and investing the balance in a high interest bank account.
Some for now, some for later:
Through salary sacrifice, Michael and Emily were both able to reduce their assessable income for tax purposes, and boost their nest eggs for the future.
Protecting their future:
After an insurance needs assessment, Lisa made recommendations for the couple’s life and total and permanent disablement cover. She also recommended for Michael to take out salary continuance so a portion of his income could be subsidised in the event of prolonged illness or injury. The couple now have peace of mind that their family would be financially secure in unforeseen circumstances.
To see how an Active Super financial planner could help you grow and protect your wealth, request an appointment now, or call us on 1300 547 873 between 8.30am and 5.00pm, Monday to Friday.
*Whether or not a fee applies will depend upon the scope of the financial advice you require. Your financial planner will discuss any fee payable when meeting with you and, if a fee is applicable, will advise you of the fee should you decide to proceed with obtaining the advice.
This case study is illustrative only and is not an estimate of the investment returns you will receive or fees and costs you will incur. Member names have been changed to protect anonymity.
This has been issued by LGSS Pty Limited (ABN 68 078 003 497) (AFSL 383558), as Trustee for Local Government Super (ABN 28 901 371 321) (Active Super). Any advice in this case study is general in nature and is not a substitute for personal advice as it does not take into account your investment objectives, financial situation or particular needs. Accordingly, you should seek professional personal advice and refer to the relevant Product Disclosure Statement at lgsuper.com.au before making a financial decision.