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The “Blowing the Cash” Story

So, this is the story of one of our clients who worked with Brendan, one of our Qualified Property Investment Advisors. Our theme of this story — and I’m being a little bit critical here — but this is a “blowing the cash, wasting the money” story for me. Well, before they came in and we got them all sorted out.

Their backstory: a Melbourne-based mid-40s couple, circa income around the $150,000 – $200,000 p.a mark. Bryce actually bought one of their properties for them a few years back, prior to getting a Plan done! And so, that’s a good story for our Melbourne-based clients. In reality, theirs was a story of surprise of just how much money they were spending and how much money they weren’t putting away.

So, this Plan is mostly about savings for them. They had no kids on the agenda, so “the big rock in the jar” for them was about early retirement. There was no need for any future legacy. So, we didn’t have to factor in a lot of the costs associated with leaving a legacy, but there was some educational training that needed to take shape. This education was done through Dean in our Mortgage Broking team, who evaluated their situation and explained exactly why they weren’t going to be able to borrow much at based on their current spending,

These clients needed to rethink about their discretionary versus essential spending, to allow us, at the very least, to go to a lender responsibly and provide them with the loan they needed to secure their first investment property. Of course, they were definitely overspending and they needed to get some training as to how they were overspending money, and why their money wasn’t working hard enough for them. As a result, serious adjustment took shape.They took this information on board, and what happened next was amazing.

The transformation was great— they went from having very little clue around managing their money and lacking direction, all the way to having a clear idea of the right pathway to move forward. And guess what? Now, they’ll be buying two investment properties — only two — to build up that wealth over time.

We’re looking to target a passive income of $100,000 a year for that couple. And because, they want to retire in their mid-50s, once we build it up, there will be a sell down strategy attached to this particular Plan. Of course, this is a different type of planning story — it’s one of not organising their money, not getting their circumstances sorted out, but focusing on an educational journey first and then coming back for show us to show them what their potential is. Again, now they’re on a pathway to realising that potential. So, I think that’s a great outcome! We’re able to get them the finance and also start to get them on their pathway to buying two quality investment properties. And they can get on with their life, this time using Money SMARTS to organise their money on the My Wealth Portal Platform (fill in this form to get Free Access). Overall, this situation speaks volumes for what this couple is going to do to transform their situation.

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