Case Study: Carl & Holly’s Journey to Financial Confidence
Written by Lance Swansbra
Their Situation
Carl (43) and Holly (42) are busy professionals raising two teenage children. Carl works in marketing, and Holly is an engineer. Together, they earn around $300k per year, with part of Holly’s income coming from an employee share scheme. They’ve worked hard and are in a strong financial position—owning their home outright and holding approximately:
• $300k in cash (from a recent inheritance)
• $400k each in superannuation
• A personally managed share portfolio worth $300k
Their Goals
Despite being financially secure, Carl and Holly weren’t sure if they were making the best decisions with their wealth. They wanted a second opinion on their investment strategy and had been contemplating whether they should buy an investment property. Their key aspirations included:
Having the option to retire by age 55
Supporting their children financially, including contributing $20k each towards their weddings
Traveling more, with dream trips to the US and Africa (costing around $30k each)
Finally renovating their kitchen ($60k) without financial stress
How Braeside Wealth Helped
We built four detailed financial models exploring their options:
Maintaining their current strategy
Purchasing an investment property
Making additional super contributions
Establishing an education bond
After reviewing these scenarios together, we agreed on a clear course of action to maximise their financial security and achieve their goals efficiently:
Superannuation Boost
Redeemed their share portfolio and used surplus cash to fund lump sum super contributions
This reduced their investment tax rate from 39% to a maximum of 15%, with tax-free earnings after age 60
Continue to maximise tax deductible super contributions
Education Bond for their Children
Established an education bond, making a sizeable investment now, along with regular monthly contributions
Capped investment tax at 30%, with tax-free withdrawals for education expenses
Withdrawals after 10 years are entirely tax-free, can help to fund early years of retirement if super can’t be accessed
Optimising Super Funds
Restructured their superannuation to reduce ongoing fees and investment costs
Protecting their Future
Worked with risk and estate planning experts to ensure they have the right protection in place if something unexpected happens
Investment Property
Carl and Holly decided they didn’t need the hassle of owning an investment property and have decided to park this idea for the time being
The Results
By making these strategic changes, Carl and Holly are on track to hold an additional $388,000 in wealth by the time they turn 60.
With a clear financial plan in place, Carl and Holly feel excited and in control of their future. They no longer worry about whether they’re making the right decisions, and they’re thrilled that they can enjoy their dream holidays and home renovations without guilt. Most importantly, they now have the freedom to choose when and how they work—knowing their wealth is growing efficiently in the background.
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The information in this article is general information and does not take into account any person’s individual situation. You should always do your own research, or seek professional advice to assist you in making an informed decision about what suits your needs.