Case Study 1 – Double Income, 2 Kids, Home & Investment Property, and no idea what to do

John and Carol Jenkins*, both aged 45, and their two children are a typical Australian family.  They are both employed, hard-working, are paying off their home, and have just bought an investment property.  The Jenkins, like so many of us, are busy simply living life.

John and Carol both have a bit of superannuation, and have a minimal amount of risk insurance, although neither of them are quite sure exactly what that amount is, or what they are covered for.  They knew that they needed to sort out their insurances to ensure that their properties were paid for, and their children’s education wouldn’t be jeopardised in the event that they weren’t able to work.  They also began thinking about what their retirement would look like, and needed advice on how much they would need and what strategies would be best suited to their personal situation in order for them to achieve it.

The Jenkins key life goals were to reduce their home loan quickly to generate more available funds in the loan to fund renovations & investments, implement a risk management strategy (insurance) to protect themselves, their family, and their investments, review their superannuation and create wealth for retirement.

JBS’ strategies were to:

• Restructuring their home loan;
• Implementing a savings plan;
• Provide a review of their existing insurance coverage versus their interests;
• Increasing their insurance coverage levels to protect all of their interests;
• Provide a review of their current superannuation; and
• Move to a more flexible superannuation fund which caters to their needs.

The Jenkins are now positioned to save more money and pay of their home loan quicker, which meets their goal of having more available funds in their home loan to fund renovations and investments in the future.  They are protected in the case of an accident, and their superannuation is now working for them instead of against.

All in all, the Jenkins are comfortable knowing that their finances are being looked after, and they can go back to just being busy.

For a more detailed explanation of their strategy, please click here