Case Study - Consolidation of Loans
Mary & Graham are married with 2 Children. During Mary’s time away from the workforce, with their 2 Children, Finances were at times stretched, and during this time their Credit Card was utilized to cover shortfalls in their living expenses, and a new car was required A Personal Loan was taken out for this.

Whilst Mary returned to work part time, the Credit card, Personal Loan and Home Loan repayments still continued to stretch the Budget, but using Equity in their Home we were able to consolidate all these borrowings into the Home Loan with one easy payment, reducing expenses. This freed-up some surplus cash each month for Mary & Graham.

Case Study – Investing in Growth Assets
Jack and Vanessa are friends and 20 years ago they each had $10,000 to invest. Jack decided it was important to protect his capital, so he invested in a term deposit. After seeking advice with an Independently Owned Adviser, Vanessa invested her money into an Australian Share fund.

Both used the after-tax income from their investments to meet their financial commitments each year. Who was the more astute investor after 20 years? Vanessa with $50,284 or Jack with $10,000

Clearly Vanessa made the right move. Initially, her share fund paid less income than the term deposit but as her capital grew in value, so did her dividend income. By contrast, Jack’s term deposit paid interest at the prevailing rates, based on the original capital value only.

Even more compelling is the growth in capital. Vanessa’s share fund has grown to $50,284 (before tax), while Jack simply gets his initial $10,000 back. However, the benefits of investing in shares would also have been significant, had Vanessa and Jack decided to reinvest their pre-tax investment income to compound the investment returns.

In this scenario, their investments would have been worth $112,578 and $51,882 respectively.

Case Study – Property
John and Karen are in their early forties and have 2 children aged 13 and 10. They still had a small mortgage of $30,000 owing on their home that now is worth $300,000 and felt they could look into the prospect of owning a second property as an investment but knew nothing about how to go about it.

At an initial consultation their financial viability was assessed, their suitability for a property investment confirmed and their short, medium and long term goals compiled.

It was then agreed they purchase an investment property in an area of proven capital gains and strong rental returns. This gave them both significant tax benefits to offset against their current incomes.Two years down the track their investment property has increased in value by over $80,000 and they have never been without a tenant the whole time. They are now looking for their next property investment. Click here to check out the full details.