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Case Study 1

Recycle My Debt

Adam (33 with an annual salary of $92,000) and Amanda (30 with an annual salary of $45,000) both work and have three children together. They own a home valued at $700,000 with a $380,000 mortgage, have $16,000 in personal loans and a combined superannuation balance of $75,000. Lifestyle spending is around $57,000, and they have plans for annual holidays, expenditure on children and the regular upgrade of their car.

Their financial advisor examined opportunities to create additional wealth through their working lives involving:

  • Recycling non-deductible personal debt into tax-deductible investment debt associated with an income-generating investment portfolio
  • Favourable treatment of superannuation salary sacrifice contributions
  • The long-term benefits of a modest savings plan.

The wealth creation strategy developed by their advisor and implemented after consultation would increase their wealth at retirement in future dollars from $2.22m to $3.39m, without impacting on their desired lifestyle and after payment of all advisor fees. The advisor charged $4,400 to examine a number of strategies and implement the chosen plan and $3,300 annually to monitor and track progress against the plan.

Client Demographics

Summary of their financial situation and the situations modelled.

anderson rmd client demographics

Scenario Comparisons

Detailed Prospera scenario comparison report examining the impact of a 3% rise in interest rates against various investment scenarios.

anderson rmd strategy comparison

Chosen Strategy

Prospera wealth summary report detailing the chosen financial strategy.

anderson rmd track-to-plan

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