Getting Your House In Order

Clearing debt

Allan and Deb Watkins from Newcastle have been clients of
Shane Foster’s since 2012. At that time Allan, a management
accountant, had just turned 55 and was looking for some
financial advice to help him and Deb prepare for retirement.
“We wanted someone to put our investments into perspective
so we could work out the best option for our super,” Allan said.
“We told Shane what we wanted to do when we retire and the
level of income we were hoping for.”
Shane reviewed the Watkins’ financial situation and saw that
their current spending was too high for them to achieve their
goals by the time they’d hoped to. Also, even though they’d
already paid off their house, they’d used their mortgage
redraw facility to fund some home renovations.
Allan commented; “Shane explained the best approach for us
to become debt free and get to the point we wanted to be at
financially by the time I retired.”
The first part of Shane’s strategy was to put a household
budget in place so Allan and Deb could keep their spending
under control. He also recommended that they cash in some
shares to help pay off their debt as quickly as possible.
Through Shane’s clear explanation of the proposed strategy,
Allan and Deb had a better understanding of what they
needed to do to reach their goals.
“I like Shane’s approach and his manner,” said Allan.
“Whenever we talk, he knows where I’m coming from and I
know where he’s coming from. We’re definitely on the same
wavelength.”

Deb and Allan Watkins on their new property

Building wealth

With their debt cleared, Allan and Deb were free to focus on
maximising their super while Allan was still working. This
involved increasing Allan’s contributions through his existing
salary sacrifice arrangement. By taking advantage of
contribution splitting rules for spouses, he was able to use
part of his contributions to boost Deb’s super as well.
Following Shane’s advice, Allan and Deb also rebalanced
their super so it was invested more conservatively, which
ensured that the level of risk they were exposed to was
appropriate for their stage in life.
Once their kids had grown up, Allan and Deb were also
looking to downsize. They were recently able to sell their
house and move into their dream home beside a golf course.
They’re also looking forward to enjoying some overseas travel
in the near future.
Best of all, thanks to Shane’s guidance, Allan’s and Deb’s
super is continuing to grow at a healthy rate and Allan is on
track to retire within the next few years,
“Deb and I both have 100% per cent confidence in Shane’s
advice – he’s totally professional and we’ve never doubted
any of the investment advice he’s given us,” said Allan.
“If anyone I know is thinking about getting a financial adviser, I
recommend Shane to them on the basis that I use him
personally,” he added. “I wouldn’t recommend Shane unless I
was absolutely confident in his advice.”

Download This Case Study – Allan & Deb Watkins Case Study