Plan for retirement and enjoy the journey


When we met Jan and Michael, they were planning to retire in 15 years’ time. They wanted to travel, however, did not feel they would be able to do so until retirement.

They complete their ‘wish list’ and one of the items in the long term section, was a trip to New Zealand. As we want out clients to enjoy the journey, we put plans and structure in place for them to make New Zealand happen sooner.

A postcard arrived from New Zealand 18 months later, with the comment, “Thank you for giving us permission to take this holiday”. Receiving that card was very powerful, as is certainly demonstrated what can be achieved with a direction and a different mindset. How wonderful it is to know we can guide and make a difference in people’s lives. They have since been to Europe and are currently planning a trip to Canada. In the meantime, their superannuation funds are growing nicely to provide the lifestyle they desire in retirement.

Sixties and beyond

David and Gail retired at age 55 in 2002. At this time David had $410,000 and Gail had $255,000 accumulated in superannuation.

Their funds are in individual Account Based Pensions (ABPs) and since commencement they have collectively taken pension/income payments totaling $547,000, withdrawn a lump sum total of $114,500 (for holidays, new car, etcetera). Therefore, a total of $661,500 has been taken out of the collective ‘pot’. Since age 60, this income has been tax free. Value today is $664,855.

As the fund does not pay any tax on earnings, they have received a total of $42,500 in refunds (retained within the ABPs). They have learnt alot about investing and feel very comfortable with the strategies we have applied. At age 65, they were entitled to receive a part Centrelink Aged Pension and we helped them completed the initial paperwork to apply. We also liaise with Centrelink on their behalf, to provide portfolio updates etc. on an ongoing basis.

Survived the Global Financial Crisis.

As a point of interest, their combined balance at the lowest point during the GFC was $467,500. They did not panic and stayed focused on the long term and feel comfortable with the level of diversification they have in their portfolios. They knew that the dividends were still coming in from the various sources within the funds and these were applied to buy more units at lower prices.

Since then, they have withdrawn an additional $241,500 and as mentioned above, the current value is $664,855.

They are very happy that we remained firm with our long term strategy.

Written by Kath Orman

Originally published in Holistic Bliss Magazine, issue Feb 2019

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