How Peter & Nicole built a recurring income and a property portfolio worth $2.1m using their superannuation
At the time of our initial meeting with Peter and Nicole they had a $150,000 super fund balance across several funds.
They had intended to invest into direct residential property but this had taken second priority as a result of family commitments. We established that Peter and Nicole were paying a large sum in fees, as five of their seven super funds were in out-dated retail accounts.
They expressed a desire to retire at 65 and felt that an income of $90,000 per year would allow them to live a comfortable life in retirement.
To develop a strategy to assist Peter and Nicole reach their goals in retirement, we obtained a detailed financial picture, which comprised the following:
– Household Income: $110,000
– Mortgage: $350,000
– Value of their owner occupied property: $600,000
– Investment Property: No
– Savings: $22,000
– Super: $151,000
– Debts: $10,000
Peter and Nicole were both 50 years of age with approximately 15 years left in the workforce until they reached retirement. Peter and Nicole were looking at approximately 20 – 22 years in retirement (the pension phase).
Once we gained an understanding of their financial position and goals it was time to determine how much they would need to save before retirement.
26 years (average time in retirement) x $90,000 per year in retirement = $2,340,000 needed in savings in 10 years time.
When Peter and Nicole saw this number their faces dropped.
We assured them that we help people like them every day and even though it’s a big number we knew we could help them.
Goal – Build savings and recurring income for retirement
APPA secured Peter and Nicole a re-possessed property 3 weeks later for $351,000 and a blue chip property 6 weeks later for $390,000.