Client Case Study

James

Hi every one Salena Kulkarni here, today I just want to introduce you to James, a client of mine who is the CEO of a medium size organization. He’s in an interesting situation, he had just recently remarried and has a new baby, as well as having teenage kids from a previous marriage.

The problems that he described in terms of where he is at when we first started working together, is was he does not have much free time to consider all his investment options. He had some bad experiences in the past with financial professionals and generally admitted to be a little mistrusting. And I think above all, he was aware that the time left in his career was actually running out, and his opportunity to make the most of the income string that he had was also running out.

The reasons that he came to see me, he felt very stressed because he realized that he couldn’t just retire when he had dependents now that require him to maybe to support them. His superannuation and pension was going to be adequate but not generous, I think he’s feeling was a frustration that he had worked so hard for so long but hadn’t really created the wealth behind him to reflect that.

In terms of the framework that we went through with James, it was very much about going back to basics, working through a framework that I use called The Money Matrix™, which is really about looking at his risk profile, his capacity to invest, his goals, his preferences and really kind of creating a plan for him that was going to be palatable to him. We also looked at his money management and just kind of looked at how we can possibly tweak that to create a little bit more disposable income without adversely affecting his lifestyle.

In terms of action plans that we put in place, we had identified his financial priorities, goals and I presented him with a number strategy options and he was able to select the one that felt like the best fit. We actually restructure a couple of his bank accounts and really work to simplifying his money management, which happen till that point which had been at that point a little bit messy and complicated.

The outcomes for him right now, he has as a very clear business plan which is simple to understand and easy to follow. It has identified for him the style and types of properties that are going to work for him and the impact that each new investment  that is actually going to have on his wealth position over time. He has two investment property that are under his belt now and a very clear strategy for exit when the time is right for him to get out of the debt related to that.

When I asked him to reflect to me on what his lessons learned were from the experience, first of all, he said that he hadn’t realized that the cost of not taking  action was somewhere in the ballpark of about 2 million dollars over ten years, in other words, wealth that he wouldn’t have otherwise created. He realized that retirement wasn’t really a comfortable option for him at the 10 year mark he had previously hoped it would have been. And he’s really happy to be in the driver’s seat rather than handing the reins of his financial future to someone else. So in terms of learning lessons that I would I’d love to share with you, first of all really try to understand the cost of inaction I think in Australia it’s very easy to have a very  comfortable existence and there just comfortable existence and there just doesn’t seem to be much urgency but when, you start to realize the lost wealth that you could be creating as a result of some simple investment strategies taking action becomes something that you know you feel more compelled to do. And I’d encourage you as well to try and use even any kind of framework that makes sense to you to drive your investment decisions rather than investing on emotional or shoot from the hip style of investing, if you’d like any further support or information,  please get in touch you can email me directly Salena@phoenixwealthgroup.com.au and hope this has been helpful look forward to connecting.

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