Early retirement is a dream for many, but the reality for few. That’s because it typically involves extensive planning and, more often than not, assistance from Certified Financial Planners ® like Precision Wealth Management.
Based in North Lakes, our Financial Advisor has helped countless couples and singles from Brisbane and beyond to build wealth and plan for a comfortable retirement.
In this article, we share some detail about strategies we put in place for a North Brisbane couple hoping to retire when they’re about 55-years-old.
DISCLAIMER – The information provided in this blog is general and does not consider your individual financial needs or objectives. It does not constitute personal advice. We recommend seeking out professional and independent financial, legal and tax advice which has been designed for your individual situation before acting on any information contained below.
Financial Planning For Early Retirement
Precision Wealth Management has been helping a North Brisbane couple to grow their wealth as they strive to finish work in their mid to late 50s.
The pair, who first sought advice from us in their 40s, have been seeking our advice for 6 years, and in that time, they’ve seen a massive increase in their savings and have been put on a really clear path towards retirement.
When they first enlisted our guidance, they were in a good financial situation, as they’ve both maintained employment with a reasonable income throughout their working lives. However, they just had a splattering of different investments, that were not ideal and not tax effective for them, and no real overall plan for when they stopped working.
Our recommendations for them included:
1. A fairly major reshuffle of their investments:
- We consolidated what we could without any capital gains tax consequences, then made a fairly sizable contribution to superannuation.
- We made this suggestion because any outside superannuation investments would have been costing them tax at their marginal tax rate. By consolidating and contributing to superannuation, they reduce their tax to a much lower tax rate of 15% inside superannuation. Plus achieved a much lower cost on their investments than their previous ones
2. Salary sacrificing to both of their concessional caps, and
3. Recommence building an investment portfolio outside of superannuation as they get closer to their planned retirement date because they intend to retire before their superannuation preservation age. (60 for those born after June 30, 1964).
- They’ve been doing that now for a few years and are getting very close to having enough money outside superannuation for them to retire now and live on that until they reach age 60. On top of this, their superannuation far exceeds their original plan which will provide them with a secure income exceeding their goals throughout their whole life.
- Although with their work plans, they will probably work a bit longer than they need to, they are happy in the knowledge that they can retire shortly if they want.
Why Did We Recommend the Above Strategies to this Couple?
This personalised advice was created and acted on to:
- Reduce their income tax and the tax on their investments, and
- To improve investment performance with a better investment strategy, consolidated in lower cost investments.
Individual Advice and Planning for an Early Retirement
Every single person’s path to retirement is different and requires personalised advice. If you are in Brisbane and would like to discuss your goals for your non-working years, please don’t hesitate to reach out to us today.
Precision Wealth Management is a local, privately-owned financial planning firm based on Brisbane’s northside.
Our certified advisors work with each individual client to determine the best wealth creation strategy based on their unique situation.
We strive to stay at the forefront of the industry, and our investment approach is based on decades of research.
Financial Planner Brisbane
Our services include Superannuation Advice And Planning, personal Insurance Advice, Budgeting And Cashflow Management, Investment Strategy And Advice, Aged Care Financial Advice, Retirement Planning Advice, and Debt Reduction Financial Planning.
At Precision Wealth Management, we offer flat fee pricing which is determined on the complexity of the work – not the value of your investments.