Bill and Maddie (not their real names) have two kids under the age of 5. Bill is a triathlete and Maddie is a competitive horse rider. While she loves horses, she also loves champagne and travelling. Bill loves yachts, football and training, of course.
They both work (very) long hours in often stressful circumstances which means they’re unwilling to curb their spending and compromise the things they enjoy doing most.
Bill and Maddie’s dilemma is they just don’t have time – full stop!
And that includes not having time to track their spending or optimise their significant incomes. They admit that they typically commit one weekend each year to reviewing their financial situation.
At time of writing, they hadn’t renegotiated their home loan or investment loan in 4 years. Whilst they have income protection insurance, it hadn’t kept pace with their salary increases.
Given their high incomes, they feel they are paying way too much tax. They want their kids to go to private school, but they’re not sure how to fund it and despite having received an inheritance in recent times, they don’t feel confident they’ll be able to retire as early as they’d hoped.
They know they have a lot to consider and they need help, but they are simply too busy to attend long meetings, and even if they got past this, time would prevent them from following through.
What we did
We realised they needed a proactive financial adviser and planner who would do the heavy lifting for them and create a financial discipline that would allow them to work towards and achieve goals.
Firstly, we helped Bill and Maddie define their long-term goal which was to be Bad Debt free by the time they turned 50, wisely invest their inheritance and create wealth so they have financial freedom by age 55.
Along the way they will need sufficient money budgeted to satisfy their travel and other passions so they can enjoy life their way, while ensuring the lifestyle they worked so hard to create is protected.
We helped them refinance their home loan and investment loan which created a saving of approximately $10,000 in interest payments each year.
We analysed their financial situation then worked back from their long term goals (debt free at 50, retired at 55) so they knew what to put aside each month.
And importantly, we ensured there was enough available for funding their passions (horses, Audi cars, champagne and travel). We reviewed and restructured their personal risk insurance so their cover was appropriate and without the premiums breaking the bank.
The happy outcomes
We see Bill and Maddie three times per year – January, May and September to re-clarify their goals as this makes it easier for them to hit their targets.
By return we track their progress to ensure they contribute regularly to their multifaceted strategy.
While Bill and Maddie continue to work in stressful circumstances and their home life is busy, they agree having an organised financial life has made a huge difference.
They are living life their way, and it has a lot to do with having a qualified financial adviser and planner guiding their financial life and holding them to account. And all without sacrificing what’s important to them.
For busy professionals in need of financial advice and planning, please contact Adam Moiler, Moiler Wealth on +61 8 9328 5044 or email email@example.com
Disclaimer: The advice provided here is general in nature only as, in preparing it we did not take account of your investment objectives, financial situation or particular needs. Before making an investment decision on the basis of this advice, you should consider how appropriate the advice is to your particular investment needs, and objectives. You should consider the relevant Product Disclosure Statement before making any decision relating to a financial product
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