CALL PROSPERA NOW ON 1300 769 890
Case Study 3

Stress Testing

Larry and Lisa own a $700,000 home with a $450,000 principal and interest loan. Combined income is $190,000 per annum and they have combined superannuation of $275,000. Larry and Lisa have lifestyle expenses of $80,000 per annum and desire an annual holiday – budget $10,000.

They were concerned about potential interest rate increases and spoke to their financial advisor to try to ascertain the impact on their desired lifestyle. Their financial advisor modelled three scenarios (including comparing their principal and interest loan vs use of an investment line of credit to commence a geared investment portfolio) to demonstrate the impact of a 3% increase in interest rates.

Client Demographics

Summary of their financial situation and the situations modelled.

larry and lisa client demographics

Scenario Comparisons

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

larry and lisa scenario comparison

Chosen Strategy

Detailed Prospera wealth summary report detailing the chosen financial strategy.

larry and lisa chosen strategy

FIND OUT MORE

Discover how Prospera can deliver benefits to your financial advice practice