Financial planning case study

/Financial planning case study
Financial planning case study2018-09-14T15:22:28+00:00

How a comprehensive financial plan provided an income stream for our clients after a major illness was diagnosed.

Jane, 38, and Jim, 44* both work and have two young children, a home loan with mortgage, minimal assets and personal insurances, and wanted to protect the family from any unforeseen circumstances.

Following several meetings and a review of their personal situation, a full financial plan was presented to them. It would allow them to start building towards their personal goals and objectives.

In developing the plan, we used our Circle of Safety strategies to provide and protect:

1. Income during their working life via

  • Mortgage repayment and asset accumulation
  • Protection of income and assets from accident or illness

2. Income after their working life via

  • Superannuation and investment strategies

3. Income for dependants if the clients were to die early via

  • Life insurance
  • Estate planning

To assist them focus on their long-term goals, especially future income, and protect what they already had :

  • Each parent was provided with a comprehensive insurance package so they would know that their family was fully protected
  • Superannuation strategies were implemented to provide for long-term asset growth
  • A mortgage reduction strategy was implemented in order to reduce the home loan at a faster rate with minimal impact on cash flow

All strategies implemented were regularly reviewed to ensure Jane and Jim remained on track to achieve their goals and so we could make adjustments when necessary.

Unfortunately, Jane* was diagnosed with an illness that was to have a major impact on her whole family.
A claim was made against the insurance that had been implemented, resulting in a substantial lump sum payment, as well as several months’ income replacement and other associated benefits to help cover travel, accommodation and rehabilitation costs.

This allowed the family to forget about the financial burden of both parents not working, the home loan repayments and the costs of illness and allowed them to focus on the main goal of Jane’s* recovery.

Due to the reasonably conservative nature of the other strategies implemented, they were able to continue with these without any effect on the family. This will also allow them to continue focusing on their long-term goals without losing track of their short- to medium-term goals.

The fantastic news is Jane* is now in remission and resuming life as usual.
* Names have been changed to protect privacy.

For more information regarding these strategies, please contact Andrew Clegg.

Related link: Financial Planning Testimonial