A retirement plan that benefits the whole family
Working with Halpin Wealth, Victor and Elena were able to:
- Create a plan to support a regular retirement income need of $80,000 a year, with this amount increasing over time
- Reduce their projected tax by approximately $64,000 over two financial years, based on current legislation
- Move approximately $1.6 million into superannuation over time, helping their money work more effectively in retirement
- Plan a generous cash gift to their son without putting their own retirement plans at risk
- Remain on track to have approximately $1.65 million in retirement savings later in life, with the potential to leave this to their loved ones
Meet Victor and Elena
Victor and Elena are a South Australian couple in their early 60s who came to Halpin Wealth looking for clarity about their retirement.
Both are retired and had worked hard over many years to build a strong financial position. Most of their wealth was held in two properties, one residential and one commercial. They also had some superannuation and money held in cash-based investments, such as term deposits.
On paper, they had assets behind them. In real life, they still felt unsure.
They wanted to know whether their money would be enough to support the retirement they hoped for. They were also considering whether they may need to sell their property assets to access money for day-to-day living expenses.
That raised more questions. What would the tax impact be? Would selling assets affect their long-term retirement position? Could they still help their son financially? Finding purpose of the sale proceeds and how long would their money last?
They had also previously received unclear advice about whether they may be eligible for the Age Pension, which added to their uncertainty.
What Victor and Elena wanted most was a clear picture of where they stood and what their future could look like.
Why they came to Halpin Wealth
Victor and Elena wanted to feel more confident about their retirement.
They had a clear income goal of $80,000 a year and wanted to understand whether this could be achieved over the long term.
They also wanted to plan a generous cash gift to their son, but only if they could do so without putting their own retirement plans at risk.
For Halpin Wealth adviser Jacky, the priority was to help Victor and Elena see how all the parts of their financial life could work together.
“Victor and Elena had worked hard to build their position, but they needed a clearer plan for how their assets could support them in retirement,” Jacky says.
“Our role was to help them understand their options, manage tax more effectively, and give them confidence that they could support their lifestyle while still helping their family.”
How we helped Victor and Elena
Halpin Wealth developed a retirement strategy that focused on making better use of the assets Victor and Elena already had.
The aim was not to make things more complicated. It was to bring everything together in a way that supported their retirement income which was easy to access, reduced unnecessary tax and gave them greater peace of mind. Furthermore, empowering them to make the decision of whether to sell their properties.
A key part of the advice involved using superannuation contribution strategies to help improve their position.
Before receiving advice, Victor and Elena were facing approximately $219,000 in combined potential personal tax payable across two financial years, based on current legislation.
Through the recommended strategy, they are projected to save approximately $64,000 in tax (net) across those two years, while also increasing the amount they hold in superannuation.
The plan also allows for approximately $1.6 million of assets to be moved into superannuation over time. This gives Victor and Elena the ability to set up a regular retirement income stream to help fund their living expenses in a more tax-effective way.
Just as importantly, the advice considered how Victor and Elena felt about investment risk.
In retirement, market ups and downs can feel stressful, particularly when you are drawing an income from your investments. Halpin Wealth established an investment approach designed to help reduce the impact of short-term market movements and provide more confidence during periods of volatility.
The results
With a clear plan in place, Victor and Elena now have a much stronger understanding of how their assets can support them through retirement.
Their strategy is projected to support retirement income of $80,000 a year, with this amount increasing over time.
They are also able to plan a substantial cash gift to their son without putting their own retirement outlook at risk.
Looking further ahead, Victor and Elena are projected to still have approximately $1.65 million in retirement savings later in life, with the potential to leave this to their loved ones.
For Victor and Elena, the biggest change is confidence
They now have a plan that shows how their income, superannuation, property assets, tax position and family goals can work together.
Instead of feeling unsure about whether they have enough, they can now make decisions with greater clarity and peace of mind.
Thinking about retirement?
Retirement decisions can feel overwhelming, especially when property, tax, superannuation, family support and income needs all need to be considered together.
At Halpin Wealth, we help you bring structure, clarity and confidence to your financial decisions, so you can make informed choices about your future.
Book a no-cost, no-obligation conversation with one of our advisers and take the first step towards a clearer retirement plan. Contact us today.
This case study is for illustrative purposes only. The outcomes described are based on the clients’ circumstances, projections, assumptions and current legislation at the time of advice. Outcomes may vary depending on individual circumstances, market performance, legislative change and other factors. This information is general in nature and does not take into account your personal objectives, financial situation or needs. Please seek qualified financial advice before making financial decisions.