Case 1 - Kevin and Mary | Case 2 - Jenny and James | Case 3 - Ray and Marie

Case 1 - Kevin and Mary

Kevin and Mary are a typical professional couple - highly intelligent, both working with a very high combined income of nearly $300 000. They are in their mid-forties and have no children. They have a wonderful lifestyle - demanding but interesting clients, lots of overseas holidays, and are entertained and entertain a lot.

Kevin and Mary came to us because they have no money. That's right - in spite of the high incomes there is nothing left over! The mortgage on the house is paid off but since that debt was cleared no money has been saved or invested elsewhere. Everything that is being earned is spent. Further, this couple had no wealth creating assets - both had good careers and good incomes but nothing that would drive the wealth that they wanted.

Kevin and Mary knew that they needed to be doing better with their personal finances. They wanted to accumulate wealth and have choices about how much they would work and what lifestyle to pursue in the future. At the back of their minds was the realisation that this could not continue - as soon as they decreased their hours of work they wouldn’t have enough income to live on if they continued to spend at the same level. Besides they had other dreams - living overseas for periods, more leisure, further study, etc.

Our job was to help them manage their consumption and teach them the skills of investment. Some of that investment needed to be in things that would give high returns - they could afford to take some risks. They could not afford to do nothing.

Their role was to learn what they needed to know and to help each other sustain the motivation to make the changes in spending that were needed….

What Kevin and Mary achieved:

• A plan that showed that they could save and invest $100 000 p.a. and an agreement on all of the necessary actions to be taken to make that possible.

• A planned and positive view of their financial futures.

• A budget that reduced their monthly consumption by $5 000 ('gaining' them $60 000 p.a. towards their planned investments).

• Career coaching that resulted in additional income of over $50 000 between them (put into investments).

• Made initial investments into Property and Shares in year 1.

• Considerable learning about personal finance and investment analysis.
  
  ^Top

Case 2 - Jenny and James

Jenny and James are a couple in their late thirties. They are both well-trained professionals who have held a variety of senior executive positions. Jenny has a very senior (and well-paid) marketing position and James has left the corporate world to write full-time. They have two teenage children, both of whom are doing well and giving no more trouble than most teenagers.

Jenny and James had earned well all of their working lives, and had received an inheritance when Jenny's parents had died in a car crash seven years ago. They own a small orchard together with their home - a valuable property. It is also very time-consuming and they continue to spend quite a bit on improvements, upkeep and some paid help, as they are both very busy.

They came to us because they wished to become financially free. Their lifestyle could only be sustained if Jenny continued to work 60 hours a week. In addition she was required to travel overseas frequently - something neither of them enjoyed and which put a strain on the whole family. They wanted a lifestyle that allowed both of them time together without the need to work so hard. They felt that, given their abilities, they should be able to have the freedom and the income to enjoy life to the full. With the kids soon to become independent, they knew that this was the time to act.

Our job was to help them to create enough wealth so that within ten years they could both be free to live the lives they wanted…

Their job was to make some of the difficult choices between their current lifestyle and what they wanted for the future…

What James and Jenny achieved:

• A plan to get their money working so that they can be financially free within 10 years

• A decision to release the value in the orchard/lifestyle block so that it could be used to generate wealth through property investment. This would also have them closer to the kids' schools.

• The knowledge, skills and contacts they need to create wealth through a property investment portfolio.

• A restructuring of Jenny's career to allow her to travel less and to derive more income from her many skills.
  
  ^Top

Case 3 - Ray and Marie

Ray and Marie are in their fifties, a wealthy, self-made couple. Between them they have established a successful business and an extensive property portfolio as well as raising four kids. They take frequent trips overseas in connection with their business interests but generally live a fairly modest lifestyle.

What's the problem you might ask? Well, they found themselves on a treadmill. Rich but not free. The business was very time-consuming. Finding and keeping a suitable general manager had proved difficult and Marie spent nearly all her time at the office - dealing with suppliers, customers and their large staff. The industry is very competitive and she was very wary of taking her eye off it. All her business systems were home-built - it was difficult for her to see where to take the business from there - sell? expand? take on a partner?

Ray was equally absorbed in his property portfolio. He had several industrial and residential properties which he managed himself, frequently doing additions and alterations to add value – all very time-consuming. In addition, the portfolio had not been particularly well structured so Ray was busy trying to sell several properties and replace them with others more suitable. At times, Ray was sailing quite close to the wind in terms of his levels of debt.

Ray and Marie came to us because, in spite of their paper wealth, they seemed unable to clarify their dream future. They were struggling to work out the lifestyle they wanted for the future and found themselves going around in circles working very hard but not getting a 'better life'. They knew they needed to make some tough decisions about the future of the business and about respective roles and work commitments. They also sensed that they should 'have it all' but somehow that eluded them.

Our job was to help them talk to each other more productively and work through a compelling vision of a future that they could both share and that would make each of them, and the family as a whole, happy. We also needed to help them restructure the business and the property portfolio so that each could thrive but with less demand on their time and less risk to their already happy financial position.

What Ray and Marie achieved:

• Clarification of what is important to each of them and agreement on a shared vision of the future.

• A plan that allows them to move from 'moneyed but trapped' to 'wealthy, free, and fulfilled' within two years.

• A decision to take on a partner in the business (Ray's brother was a possibility).

• Agreement that Marie would take a step back from the business, so that she would work ON the business, not IN it.

• A radical restructuring of the property portfolio, reducing risk and making the portfolio much stronger.

• Personal development plans that allow Ray and Marie to each pursue more of the interests that excite them.
  
  ^Top