Thinking about retirement

A need for advice

Barry Thompson*, a now-retired business manager for a multi-national corporation has been a client of James Reynolds’ since 2014. Barry and his wife Sam* had professional advice relationships with their Accountant, realtor and their banks. What Barry and Sam were looking for, though, was a financial adviser who could help them better manage their financial situation.

At the time, this included two investment properties, debt on the two properties and their home, multiple superannuation funds, cash and overseas-based employee shares. As well as this, there were employee bonuses and a large income.

With their financial situation not having an overarching plan, there was no way to know if their financial situation was optimised for where they wanted to be now and in the future.

Were their assets cost-effective? Were they making comparably good returns? Did they complement each other? Was there a strategy to minimise tax? Was it simple? Were they making the most of current legislation?

“I wanted to make sure that what we owned would allow us to retire how we wanted to,” Barry said.

Refreshing the strategy

Over the years, James in collaboration with an Accountant, buyer’s agent and their banks, recommended changes to their financial situation. More recently, with Barry and Sam approaching retirement, James recommended a strategy that would simplify their finances for the future. The consolidation has created a simpler, more effective financial situation providing Barry and Sam access to a regular income and lump sums as needed.

This strategy involved maintaining Barry’s superannuation, cash and employee shares, while the investment properties were consolidated to ensure Barry and Sam were debt-free.

Since retiring, Barry has improved his golf and fishing, and he enjoys going for walks down to his local beach with Sam. With his financial situation now under control, Barry is also grateful for the trust and understanding he has built with James over the years. “James is great to work with - he’s easy-going, he always thinks ahead and I trust him,” he said. “I couldn’t ask for more from a financial adviser.”

* Names have been changed for privacy.

Notable Achievements for Barry and Sam

  • Since 2014, their net financial position has increased by 105%.

  • Their annual tax has been reduced to 0%.

  • The anticipated sale of Barry’s employee shares has a comprehensive strategy to minimise Capital Gains Tax.

  • Total yearly returns on their financial assets has increased by 125%.

  • Income and the achievement of a Barry and Sam’s goals are sustainable for the future.

  • Their financial situation is being managed in the event of situations such as market downturns, financial opportunities and death.

  • Quarterly meetings are scheduled to discuss their financial situation.