Retirement Planning – How We Helped Julie To Retire By 55

With goals to retire by age 55, do you think 49-year-old Julie is a successful entrepreneur? A self-made start-up business success? Or perhaps you suspect she’s come into an inheritance? You’d be right to make assumptions because who else can afford to retire at 55 years of age? It turns out that Julie can, and she’s neither a business owner nor an heiress. She just found the best financial advisors and has not looked back.

Julie contacted the ActOn Wealth team via email. Nobody had recommended she come to us – it was simply a case of her finding us online and feeling we would be a good financial fit. Our finance advisor Anthony gave her a call, and following a good conversation on the phone, they agreed to meet.

Early retirement planning for Melbourne resident

Julie outlined her ambitious retirement goals early in her face-to-face meeting with Anthony. Although she confessed it was probably wishful thinking, she wanted Anthony to explore the possibility at least. Relishing a challenge, Anthony did precisely that. Importantly, Anthony had other challenges when considering his retirement advice for Julie. This included:

• Her modest cash savings
• She still owed a significant home mortgage
• Three separate superannuation funds
• Very high insurance premiums
• No clarity or goals regarding how to manage any additional savings she might make

These obstacles were causing increasing anxiety for Julie. She knew she needed a financial plan but had no idea where to start. Anthony, on the other hand, was in his element.

How we got Julie on track for an early retirement

Part of ActOn Wealth’s financial planning and investment advice services includes a full 360 financial fact-finding mission. Anthony listened in detail to Julie’s goals, concerns and background briefing. Anthony and our in-house research support team meticulously examined Julie’s financial status. The thorough investigation revealed some anomalies costing Julie a significant amount of money each year and jeopardising her financial goals. The team left no stone unturned, detecting all wealth-building inhibitors and providing appropriate financial solutions. These included:

Life insurance advice

With help from our insurance service team, Anthony uncovered enormous room for improvement and savings. Julie was listed with her incumbent life insurance provider as a smoker, despite not having smoked for many years, meaning she was paying an extremely high premium.

Additionally, Julie was over-insured for total and permanent disability insurance yet underinsured for trauma insurance.

Switch superannuation

The ActOn team undertook extensive superannuation research on Julie’s incumbent fund and determined she was paying too much in administration fees compared to other products on the market.

Switching to a different super provider and listing Julie as a non-smoker for her private insurance saved $555 each year.

Taxation advice

Anthony was able to generate additional tax savings for Julie via an income protection policy held personally rather than her current superannuation structure (which was the most expensive portion of her cover). This saved Julie $989 each year in superannuation fees.

Investment advice

Anthony advised Julie to transfer $5,000 into a managed investment fund to start building a passive source of income. The ultimate aim was for Julie to draw down on this fund between age 56-60 (to finance her lifestyle until superannuation retirement).

Mortgage repayment plan

Anthony devised a mortgage repayment plan that ensured extra repayments so that Julie could be debt-free when she stopped working.

Budget planner

Anthony developed an ongoing savings plan to which Julie contributed $500 per month. This enabled Julie to build up an investment portfolio to help fund the early stages of her retirement before she can access her super. Coupled with Centrelink benefits, this made her eligible for retirement at age 56.

Financial and general well-being success for Julie

Julie’s financial situation is no longer driving her – she’s behind the steering wheel and is headed directly to early retirement. We can’t underestimate the effect this has on Julie’s financial health and overall general well-being. Like so many of our clients, Julie came to us anxious, unsure and uninformed. She is now empowered, in control and can look forward with confidence and positivity rather than dread. Before meeting ActOn Wealth, early retirement seemed like pie in the sky for Julie. Now, it’s just a few years away.

After more information? Why not read our article about how to save for retirement in your 40s?

Contact us about early retirement

Has Julie’s story inspired you? Anthony and his colleagues belong to a team of the best financial planners in Melbourne. All of us are motivated to find the best bespoke financial outcomes for our clients. So why not do what Julie did? Contact us for a no-obligation, no-cost meeting and let’s see how we can help you retire early, too!