Baryl saw Ilya a year after losing her husband of nearly 50 years. Up until this point, she hadn’t been involved in managing her finances, and has developed a deep-rooted anxiety about finances owing to her lack of confidence in the matter.
Having received a letter from Centrelink, stating that she had been overpaid and that her Centrelink debt was $7,500, Baryl contacted Ilya for advice. She wanted to prevent any future Centrelink debt and ensure she receives the right rate of age pension.
Together, Ilya and Baryl identified her near-term plans, and established how much income she needs – modelling a realistic projection of her assets, liabilities, income, social security payments and expenses. They secured her assets by reducing the investment risk in her default industry fund investments, which had a higher risk than was necessary for Beryl. And, taking advantage of peaked interest rates, they invested some funds into short-term guaranteed income, helping to protect capital against high inflation.
A financial nominee service has been provided to Beryl, so she didn’t have to liaise with Centrelink. And we updated her details and records to ensure future over-payments are avoided.
In addition, a tailored strategy we implemented saved Baryl over $36,000 for her estate, by reducing the potential superannuation death benefit tax, which would be withheld by the ATO if her super was to be paid to her daughters as a death benefit at the present time.
The advice to Baryl regarding the restructuring of her finances has left her reassured in her ability to live out her plans with the income she needs, knowing her money will last her for the rest of her life – as well as enabling some inheritance to be left to her two daughters.
This situation demonstrates how a trusted Adviser can help with your retirement strategy and restore your confidence in your future.
