Retirement financial advisor: a case study in strategic planning

Imagine stepping into retirement with confidence, knowing your financial future is secure—this is where a retirement financial advisor can make all the difference. At Precision Wealth Management, we pride ourselves on providing personalised financial solutions that cater to the unique needs of our clients.

A recent review from one of our satisfied clients highlights our commitment to professionalism and effective communication, demonstrating the significant impact we can have on our client’s financial journeys. Dive into their story and discover how our personalised strategies can help you hit your retirement goals now to set you up for long-term financial success.

Planning retirement: client background

A husband and wife, approaching retirement, sought our guidance after being referred by a friend. The husband, slightly older and facing work-related injuries, was ready to transition out of the workforce. They owned a rental property primarily in the husband’s name, which had accrued considerable unrealised capital gains. With cash flow concerns looming, they were eager to sell the property and pay off their remaining home loan, ensuring a smoother financial transition into retirement.

Retirement planning: the challenge

The couple was keen to sell their rental property as quickly as possible to address their cash flow needs and allow for the husband’s retirement. However, they were also aware of the potential capital gains tax (CGT) implications associated with the sale. Additionally, they expressed interest in selling their home and relocating to the Sunshine Coast in the near future.

Strategic retirement planning: our approach

During our initial meetings, we thoroughly assessed their financial situation and discussed various options. After analysing the potential CGT liabilities for both the 2023/24 and 2024/25 financial years, we determined that delaying the sale of the property could offer significant tax advantages. We took into account:

Superannuation contributions:

By utilising the catch-up concessional contribution rule, we could help offset their capital gains.

Tax rates:

We analysed how different tax rates would affect their overall liability depending on the timing of the sale.

Employment income:

Understanding their income levels in the earlier financial year allowed us to provide a comprehensive view of their financial landscape.

Our calculations revealed that waiting to sell the property would be more beneficial, especially since we anticipated that the property might fetch a higher sale price than estimated.

Implementation of strategic financial planning

To facilitate the husband’s retirement without financial strain, we implemented a short-term pension strategy to meet their income needs until the property sale was finalised. This approach provided immediate cash flow, allowing them to transition into retirement comfortably. Once the property was sold, the proceeds could be used to further enhance their financial position.

Financial advisor for retirement: the outcome

With our expert guidance, the couple successfully navigated the complexities of their financial situation. They enjoyed a smooth transition into retirement, capitalising on the sale of their rental property while minimising tax liabilities. Not only did they meet their immediate retirement goals, but they also set the stage for an exciting move to the Sunshine Coast.

Our amazing clients even left us a 5-star Google review to express their appreciation:

“We were referred by a friend to Precision Wealth Management. We were very impressed after our first meeting with Glen and Scott. We have now signed up and are already seeing the financial benefits of having Precision Wealth managing our finances and my husband’s recent retirement. We would highly recommend this company for their professionalism and communication to anyone looking for advice on managing your financial future.”

Retirement financial advisor: a case study in strategic planning

At Precision Wealth Management, our focus is on creating tailored strategies that empower our clients to realise their financial dreams. The journey of this husband and wife exemplifies how thoughtful planning and expert retirement planning advice can lead to successful outcomes.

If you’re looking for a trusted partner to help you manage your financial future, contact us today!

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.