Planning for your future takes discipline and persistence, but the key to any successful investment is knowledge.
It doesn’t matter how much money you have or how old you are, it’s never too early or too late to begin thinking about creating wealth for your future.
The best place to start is by making an appointment with a Heritage Financial Planner
Read stories of how life changing advice from our Financial Planners has helped people just like you:
Rob and Maree - early 60's with ill health
On the face of it, Rob and Maree's financial position was healthy. They had paid off their home, and had a total of almost $500,000 in savings across several accounts and term deposits, thanks to inheritances and a lifetime of hard work. Both were in their early 60s, but ill health meant they weren't able to work anymore so their savings were quickly being eroded as they lived off interest, and Maree was also being slugged with a $3000 Pay As You Go (PAYG) tax bill each year.
"It was a big problem for us. We had worked hard to get ourselves into a good financial position but with no income we were worried that we were undoing all our good work," Maree said,
"We needed help to work out how we could maximise the benefits of what we have and set up our future in retirement." Read how a Heritage Financial Planner helped Rob and Maree
Rob and Maree made an appointment with a Heritage Financial Planner, who helped them map out a strategy to put their financial future on a much brighter footing.
75% of the couple's living costs are now covered by $20,000 a year in Centrelink benefits they never even knew they were entitled to, and Maree no longer has to pay a $3000 PAYG tax bill each year.
With Rob becoming eligible for the aged pension in a year's time, their financial affairs were also restructured to ensure he qualified for the maximum Centrelink allowance.
The result has changed Rob and Maree's lives dramatically.
"Our financial future now looks much more secure and we don't have that stress of worrying that we were not making the most of our money.
"It's a great feeling to know that we have our finances under control and can look forward to a happy retirement. If we hadn't been to see a Heritage Financial Planner we'd be more than $23,000 a year worse off!"
Lorraine - early 60's and wanting to stop work
After spending years in a stressful job that has been affecting her health, a $240,000 inheritance could be the ticket that 61-year-old Lorraine needs to financial freedom, but with only four years to retirement, how can she preserve that sum AND qualify for Government benefits?
"My big concern was whether or not I could qualify for any Centrelink benefits if I stopped working. I just couldn't cope with full time work any more and my job had made me so stressed that I was really in a bad way," Lorraine said.
"I knew that the $240,000 from the inheritance was higher than the asset test limit for government allowances.
"That meant if I quit my job I would have had to live off that $240,000 for the next four years until I qualified for a pension.
"With living expenses of around $25,000 a year, that would have taken a really big chunk out of my retirement savings." Read how a Heritage Financial Planner helped Lorraine
A Heritage Financial Planner advised Lorraine to keep $40,000 from her inheritance and then tip the other $200,000 into superannuation.
She was then able to apply for the Government's Newstart Voluntary allowance, which would provide her with $15,000 a year in income, as long as she worked 30 hours a fortnight for her favourite charity, which Lorraine was more than happy to do! The $200,000 in superannuation would not affect Lorraine's allowance as funds invested in superannuation are not counted against Centrelink benefits until Lorraine reaches at the pension age of 65.
"I'm so grateful I booked that appointment with Heritage's Financial Planner. We were able to look at options I didn't even know were possible and work out a plan that made the most of my inheritance – both for now and for later.
"I feel so much better now that I can quit my job knowing I'm not going to be wasting my inheritance money. It's a fantastic solution thanks to Heritage and my life has changed for the better. I'm happier than I have been in years."
Pat and Trish - in their 50's, with a mortgage and planning for retirement
Young-at-heart Sunshine Coast couple Pat and Trish never really thought of themselves as getting older. However, when they reached their late 50s, the couple knew they had to put more thought into setting themselves up for the future, or risk a not-so-golden retirement.
With $80,000 left on their mortgage, the question was how to maximise the benefits of Pat's $65,000-a-year salary while he was still at work, so that when it came time to stop working, they'd have enough money to do the things they'd always wanted to do – like surprising their son in London for his 40th birthday and travelling around Australia in their campervan. Read how a Heritage Financial Planner helped Pat and Trish
Pat and Trish made an appointment with a Heritage Financial Planner who came up with a simple strategy that maximised their tax benefits, fast-tracked payments on their mortgage and still left them with around the same level of take-home pay each fortnight.
"We were absolutely thrilled at the professional and thorough service we received and the fantastic strategy that our Heritage Financial Planner came up with," Pat said.
"We were worried about making sure we had enough savings for our retirement. Now we've got a strategy to make sure we get the most out of what I earn in the next few years before I finish work."
The Heritage Financial Planner recommended that Pat maximise the tax benefits associated with superannuation. With $240,000 already in his superannuation account, Pat significantly increased his salary sacrifice to super and helped meet their income needs without paying tax.
The savings enabled Pat to increase his super payments by $600 a fortnight, increase the couple's mortgage repayments by $450 per fortnight, AND still have the same take-home pay each fortnight.
At the same time, the extra superannuation payments are building up Pat's nest egg quickly and setting the couple up for a much rosier financial future after Pat's retirement.
Trish said: "We're now much more comfortable that we have a plan in place for the next few years that will give us a great foundation for our retirement years.
"You really do have to think carefully about life after you finish work, especially in the last few years before you retire.
"It was so enjoyable to work with a Heritage Financial Planner who knew exactly what was possible, took the time to understand our individual situation, and came up with a strategy that met our needs perfectly."
* The case studies provided above are based on factual information, names
and specific details have been changed to protect privacy.