Case study – Matt & Kathy – clients since 2007.

Background:

Case study - travelsMatt and Kathy were in their mid 30s when they first decided to seek advice from a financial planner.

At the time they were contemplating selling their home and were wondering if this was a good decision. They were also looking for advice about whether or not they should buy an investment property. In addition, both Kathy (an Educational Consultant) and Matt (a Sales & Marketing Director at the time) were doing well career-wise, and they wanted to make sure they were making the most of their income and assets.

“Even though I have an accountancy background, I wanted an objective opinion to make sure that what we were doing was best for us,” said Matt. “We were interested in working with a boutique financial planning business as we felt it was more likely we would find someone we could develop a long term relationship with.”

Kathy’s internet search led her to 5 Financial. She and Matt met with Jason Petersen for an initial consultation in 2007.

Actions:

Matt and Kathy shared their short and long term goals with Jason, and asked for his advice regarding their property questions.

Jason recommended they sell their existing home and buy close-by in an up-and-coming area in Sydney’s inner west. He also advised against purchasing an investment property, as it would lock up too much of their wealth in real estate.

With a significant chunk of their capital freed up, Jason suggested that Matt and Kathy diversify by establishing a share portfolio.

“We’d dabbled in shares previously, but with Jason’s help, we went into it more seriously,” said Matt. “We also borrowed to allow us increase our exposure.”

In the 9 years since becoming clients, this strategy has been highly beneficial to Matt and Kathy’s financial situation. It has enabled them to grow their wealth, diversify risk, create an income stream and gain tax benefits.

Matt said that over the years, he and Kathy have not been worried by the inevitable periods of market turbulence.

“We have trust in the advice we’ve been given so we don’t think about it,” said Matt. “We also really appreciate the dividend stream our shares give us, as well as the tax benefits we gain through franking credits.”

One of Matt and Kathy’s key goals was to reduce their home loan, and they are very pleased that it is now negligible.

“With Jason’s help, we’ve been able to balance our ability to pay down our home loan without sacrificing things like holidays, gym and golf club memberships and other activities we enjoy,” said Matt. “Plus our goals have evolved over the years and our strategy has been adjusted to reflect this.”

During the past 9 years, Matt has twice been in the position of being offered a redundancy from his position.

“Both times, Jason has reviewed the terms of the redundancy carefully, including the wording of the deed of release, and to ensure I am taxed correctly,” said Matt. “He has also helped me to look at the terms offered by new positions to help me make a well-informed decision.”

Matt said that the strategies and structures that Jason has put in place have given them more flexibility. “More of our expenses are now tax deductible, and he helped us to structure the purchase of our cars in a way that was financially efficient,” he said. “I’m also now in a position to contemplate working as a consultant rather than an employee, and I’m looking forward to the greater freedom that goes with that.”

Matt and Kathy have also appreciated the efforts of the broader 5 Financial team.

“Everyone is polite and helpful, and they’re proactive in doing what needs to be done for us,” said Matt. “Kathy and I often laugh about the fact that the 5 Financial team knows more about us than we do! They’ve really become part of our lives.”

Matt and Kathy have recommended 5 Financial to friends and said they will continue to do so.

“When you put your faith in someone for your mortgage, investments and tax, there has to be a lot of trust,” said Matt. “5 Financial has delivered on all of this in a great manner, and done it consistently over the long term.”

Matt said an example of the benefits he and Kathy have gained by working with 5 Financial is that they were able to comfortably take a 4-week holiday to the US last year.

“We travelled First or Business Class all the way, and stayed in great hotels and enjoyed every minute of it,” he said. “We feel financially confident and secure, and it’s great to be able to enjoy life and know we are getting ahead.”


If you’d like to know more about how 5 Financial can help you make the most of your financial situation, let’s chat!

An initial consultation is free and without obligation. This gives us each a good opportunity to determine if we’re the right fit for one another.

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2018-06-10T10:55:25+00:00 March 7th, 2016|