Achieving Financial Stability After a Health Setback
Client Profile
Age: 54 & 55
Net Worth: $1.8 million
Investible Funds: $1.1 million
Impact at a Glance
Financial clarity: Expert guidance provided a clear path to financial stability following a health crisis.
Debt resolution strategy: Evaluated options to manage $350,000 in liabilities without compromising long-term security.
Sustainable income planning: Developed a structured approach to replace lost earnings while preserving future wealth.
Tax-efficient wealth management: Optimised superannuation access to balance immediate needs with tax considerations.
Peace of mind: A well-structured financial plan replaced uncertainty with confidence and long-term stability.
“Can we secure our financial future after an unexpected health event?”
This was the pressing question facing a couple after one partner suffered a stroke that left them unable to work. With a substantial mortgage, uncertainties around accessing superannuation, and concerns about long-term financial security, they turned to MGD for guidance. They needed a solution that would alleviate immediate financial pressures while safeguarding their future stability.
Objectives
Following the unexpected loss of income, the couple needed a clear and structured financial plan that addressed their immediate financial obligations while ensuring long-term sustainability.
They sought a solution that would secure a stable income stream to replace lost earnings, manage their $350,000 in debt without depleting their retirement savings, and optimise their superannuation withdrawals in a tax-effective manner. Their primary goal was to regain financial stability while preserving their long-term wealth.
Challenges
Despite their assets, the couple faced complex financial uncertainties:
Should they withdraw superannuation funds to eliminate debt or take a different approach?
How could they create a stable income stream without compromising their retirement?
What were the tax implications of accessing superannuation before the age of 60?
Strategic Approach
MGD developed a structured financial strategy to address these concerns and provide clarity:
Debt Management and Cash Flow Planning: Financial modelling explored various repayment strategies, striking a balance between debt reduction and capital preservation.
Superannuation and Tax Strategy: The tax implications of early superannuation withdrawals were carefully considered, leading to a strategy that minimises tax while efficiently accessing funds.
Long-Term Income Planning: A sustainable plan was designed to replace lost income without compromising future financial security, ensuring alignment with long-term goals.
Outcome
With a tailored financial plan in place, the couple gained the clarity and confidence they needed to move forward. They successfully reduced financial stress, secured a stable income, and preserved their long-term wealth. Most importantly, they now have a structured roadmap that ensures financial resilience despite unexpected challenges.
