Julian and Vanessa
Close to Retirement Yet Still Able to Boost Future Security
Meet Julian and Vanessa, both in their early 50’s and now only 13 years from retiring. Julian works in IT and currently earns $170k p.a. with Vanessa running the family home. Both their children, who are in their early 20’s, are still living at home consuming part of the household income via food and bills. They have also been financially supporting the extended family.
With no financial plan in place and neither Julian or Vanessa monitoring their expenditure, it was no wonder they found themselves into a personal debt crisis.
Over the last 2 years they have accumulated approx. $71,000 between
- a new car loan of $38,500
- credit cards of $19,500
- a personal loan of $13,000
This costs them $1450 per month so there is nothing left over to save or invest. This, coupled with their super predictions, means they are heading towards a retirement income of around $31,000 p.a. combined.
We have now re-structured their finances, creating a surplus cash-flow of $1050 per month which has NOW allowed Julian to invest to help them achieve their long-term goal.
This investment has helped reduce his tax by over $7,000 in his first year and they are also using the income to help offset their personal mortgage interest which will save them thousands over the term of the loan.
With cash-flow reviews Julian and Vanessa are on track to look at further investing within the next 24 months.