Technology Executive Case Study

Jeff & Sam’s goal – Retire in 10 years with $150k income per year

• Assets: Family home, Super & Tech stocks
• Employers: Global US Tech Company & Recruitment
• Household Income: $550k plus Company Shares / RSUs
• Family: Married with 2 kids

Current Situation

• Received a significant amount of company shares via share options and RSUs
• Paying significant tax arising from the vesting of the shares
• Not leveraging their home equity for investment opportunities
• Underinsured and not sure of the best way to structure them
• Not actively monitoring their share portfolio
• Keen to maximise superannuation contribution strategies for tax efficiency
• Estate plan was last reviewed 8 years ago

10 Year Outlook

• Independence & decision making
• Work life balance is important
• Keen to consult part time after age 60
• Travel twice per year one local one overseas
• Parents financially OK
• Further study at Harvard business school
• Keen to do more charity work and learn spanish
• Legacy for kids – would like to help with a property deposit

How We Helped

We helped Jeff and Sam understand the importance of diversification and the benefits of the superannuation and pension environments to provide a tax-effective income when they choose to stop working

By discussing their objectives in detail and modelling the future outcomes, Jeff and Sam had a clearly defined retirement goal and roadmap to get them there

Developed a comprehensive financial model of their current situation, further modelling scenarios of different housing expenditure and investment strategies and the impact it would have on their retirement

Implemented a cash flow management system to reduce unnecessary spending and direct surplus cash flow towards retirement savings

We recommended a debt recycling strategy to accelerate the reduction of their debt on their family home whilst unlocking equity for further investments and tax deductions

Diversified their investment portfolio by reducing their exposure to shares in their employers company and investing in a portfolio aligned with their attitude to risk

Liaised with their accountant to determine their tax position with regards to the vested shares and set up a family trust to reinvest the share proceeds in a better structure

Maximised their super contributions to improve their tax-efficiency and increase their retirement savings

We analysed their situation, determined their risk needs and recommended a personal protection plan that would best suit their unique preferences

We also referred them to an estate planning specialist to get a testamentary trust in place