Paying off your mortgage sooner and building your wealth
You are thinking about retirement, still have a mortgage, and not sure if you have enough savings
Tim and Ashley's story*
Tim and Ashley are both in their late 40's. Their home is valued at approx. $770,000 and they have a mortgage of $190,000. Tim and Ashley both work full time, and they have three teenage daughters who attend the local secondary school.
Both Tim and Ashley have "healthy' balances in their respective superannuation accounts (however they are not maximising their contributions), and want a retirement income of approximately $100,000 per annum. Tim wants to retire at age 60 and Ashley is happy to continue working until age 65.
After completing a comprehensive plan for them, we advised that they should release some of their home equity and begin an investment portfolio. As they have surplus income, we also recommended that the income from the investment portfolio be used to reduce their mortgage. We calculated that they would be able to extinguish their mortgage five years earlier than previously planned. They are also growing an investment portfolio that will be used to assist with funding their retirement, in particular, in the period when Tim retires before Ashley.
* Names have been changed to protect client privacy.
What to do next:
We can help you structure your finances so they’re less stressful to manage, and at the same time grow your wealth.
If you want to know more and want to get ahead with your finances, contact us today on 03 8394 0300 or or email us at email@example.com.
Using a testamentary trust to protect assets and distribute income tax effectively