26/06/2025
The Value of Financial Advice?
Many people question the value of financial advice and whether the cost provides value for money. A common sentiment is: “I'm managing today, so I can do it myself.” An analogy I often use is that I could probably service my own car—but I don’t.
I have a new client whose situation is not extraordinary (quite normal/common); however by changing a number of variables, we can add $1,605,000 to their future retirement savings.
In fact, I would argue the benefit could exceed $2.5 million, as the future savings on their home loan would probably not be utilised thoroughly.
The Clients:
Husband (47) – Electrician earning $149,000 p.a.
Wife (46) – Assistant earning $88,000 p.a.
Combined net income: $179,000 p.a.
Three children in private school, with fees currently at $30,000 p.a.
Super balances: $237,000 (husband), $61,000 (wife)
Home value: $1.2 million, home loan: $370,000
Mortgage repayments: $5,866 per month – on track to be debt-free in 7 years
Retirement Goal:
They wish to retire at age 65 (18 years’ time) on:
$100,000 p.a. for living expenses & $20,000 p.a. for travel
Total: $120,000 p.a. (in today’s dollars)
To achieve this, they’ll need:
$2.16 million in today’s dollars or $3.37 million adjusted for inflation in 18 years
They are currently projected to reach $2.846 million, which is $524,000 short of their target (and this assumes they invest future mortgage savings, which probably won't happen).
People don't know what they don't know...
They are currently in industry super funds that have underperformed over the past 3–5 years (too long!). By optimising their super, we can add $500,000 to their retirement savings.
Once the home is paid off in 7 years, redirecting the $5,866/month mortgage payments into super will add another $1.24 million to their retirement savings.
By optimising their cashflow, they are also able to save $2,000/month. Investing this over 18 years will generate approximately $964,000.
The Result:
By optimising their finances, we can increase their retirement savings by $2.7 million.
They are now on track to reach $4.45 million by age 65—$1.08 million above their $3.37 million target.
Not only have we helped them achieve their goal—we’ve crushed it.
This is a powerful example of the value of financial advice.
Book your Free Consultation https://lnkd.in/gGWs6pq4
