Finance in your 30s – one couple’s common scenario In their early 30s, Melbourne couple Tom and Emma approached ActOn Wealth with a set of financial concerns typical of couples their age.
The two had one young child already and plans to expand the family in the coming years. However, they were trying to reconcile the realities of purchasing a home with a desire to generate long-term wealth-building strategies.
Of particular concern was when their second child arrived, which would require Emma to take time off work. This would likely coincide with the start of the firstborn’s education. Emma and Tom were considering private school but grappling to understand how they might fund their plans.
Of course, the nuances of Emma and Tom’s situation were unique. However, the overarching financial balancing act is something couples Australia-wide understand only too well.
Highly experienced with this combination of family and financial goals, ActOn Wealth was keen to help the couple navigate the complexities and reach a plan that was right for them.
Financial planning in your 30s – what Emma & Tom did next
Led by one of the best financial planners in Melbourne, the ActOn Wealth team focused on specific areas of Emma and Tom’s financial situation. The aim was to develop a financial plan to meet their retirement goals but remain flexible and adaptable to changing situations.
Budgeting & Cash-flow Management
The couple wanted to strike a balance between purchasing a home (within their means) and preserving their long-term financial aspirations. They needed help to understand their purchase price limitations so they could buy a home but also continue to save and invest. Developing a bespoke, comprehensive budgeting and cash-flow management strategy was the blueprint for helping them stay on track.
Emma & Tom’s outcome:
Through working with ActOn Wealth, Tom and Emma gained a clear understanding of their budget, cash flow, and allocation of resources, which boosted their confidence to make financial decisions. It also helped them identify where and how to save to compensate for Emma’s future time off work.
Debt Management
Given their plans to purchase a home, Tom and Emma were concerned about managing their debt effectively. They sought borrowing advice on structuring their mortgage in the most advantageous way, considering factors such as interest rates and repayment schedules.
Emma & Tom’s outcome:
ActOn Wealth’s financial advisers are also fully-qualified mortgage brokers. The team analysed Emma and Tom’s current debt situation and explored strategies to help manage the mortgage while minimising long-term financial burdens.
They also helped the couple successfully navigate the home-buying process without compromising their long-term wealth-creation goals. By structuring their debt effectively, they significantly minimised interest expenses.
Superannuation
Tom and Emma wanted to maximise the benefits of their superannuation fund. They sought guidance on selecting the right fund based on performance, fees, and appropriate investment options. Additionally, they were interested to understand if additional contributions would be advantageous for their long-term financial security.
Emma & Tom’s outcome:
ActOn Wealth’s financial experts advised on the couple’s superannuation, resulting in reduced fees and improved long-term performance. The couple was equipped with suitable investment vehicles to meet their specific goals, including funding their children’s education.
Risk Protection
As a growing family, Tom and Emma were concerned about protecting their loved ones in the event of unforeseen circumstances. They wanted advice on selecting the appropriate types and levels of insurance coverage to safeguard their financial stability.
Emma & Tom’s outcome:
ActOn Wealth evaluated the couple’s risk tolerance and provided tailored recommendations to ensure the family’s well-being in case of illness, injury, disability, or death.
Tax Minimisation
Tom and Emma wanted to minimise their tax liabilities while ensuring they were making informed financial choices. They sought expert advice on tax-effective structures, such as family trusts, to optimise their tax situation. Additionally, they were interested in reducing potential future tax burdens on their children’s inheritance.
Emma & Tom’s outcome:
Through a personalised contribution strategy to superannuation, Tom and Emma were able to reduce their immediate tax liability and boost their tax-effective retirement assets. They did so without overcommitting funds that were geared for other shorter-term goals. These tax benefits will continue to be realised in the future by planning early and exploring tax-effective investment vehicles for specific goals (such as saving for their children’s education costs). When these investment vehicles need to be accessed in the future, Tom and Emma will significantly reduce liabilities such as capital gains tax.
