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.
Summary of their financial situation and the situations modelled.
Detailed Prospera scenario comparison report examining the impact of a 3% rise in interest rates against various investment scenarios.
Detailed Prospera wealth summary report detailing the chosen financial strategy.