Derrick is 56 years old, he’s married to Olga and the couple have two children in their early 20’s. Derrick lost his Father three years ago and has recently lost his Mother. Derrick is an only child and has inherited $550,000. Derrick and Olga still have a mortgage on the family home and feel they are a bit behind regarding retirement funding. They are unsure about what best to do with the money but recognise it could really help their financial position and they don’t want to make any mistakes. Olga’s friend suggests the couple get some advice and refers them to Treysta to answer their questions:
- Should we invest the money or pay off our home loan?
- If we invest the money, what should we invest in?
- We’re a little behind where we would like to be with super, can we put some of this money into super? If so, how much?
- What difference can this money make to our retirement plans, Olga would like to stop work sooner rather than later, does this money allow her to do that?
Derrick and Olga met with a Treysta adviser and were pleased that the unique values-based process helped them uncover what was most important to them as a family…there were a few surprises. It was clear that taking the time to understand the family in this way would translate into better advice regarding their inheritance. The subsequent strategy allowed them to:
- Assess the benefits of paying down their home loan versus the benefits of investing their inheritance.
- Get a broad introduction into investment options based on their preferences, along with discussions around investment risk and returns.
- Understand the contributions rules around superannuation.
- Project their future financial position and analyse their retirement funding position.
- See the financial implications of Olga retiring early.
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