With the rapidly increasing tuition costs each year, early planning for college is essential. Working with a financial planner to evaluate all options, develop a strategy and maximize tax benefits should help accomplish goals and objectives.

Client situation

David and Kathy are 42 and have three children. While they both love their jobs and they pay well, they have started to notice as the kids get older, their expenses are increasing too. David and Kathy want to comfortably afford their children’s education and activities and at the same time build their retirement savings. As work is stressful, they also want to continue taking regular holidays with the family.

Appointment

How we have helped

Annuity Strategic worked with David and Kathy and completed a budget to see how they were spending their money. We then prepared some cash flow advice, firstly showing how they can build wealth without changing jobs, and secondly agreed a cash-flow plan going forward so they can be better prepared for any unexpected expenses, without substantially cutting back on their lifestyle.

Annuity Strategic planners can help clients financially prepare to send their children to a good college or university. Starting the college planning process as early as possible usually provides the best results. Planners can assist parents to establish a systematic savings plan and properly invest the funds according to the child’s age.

We reviewed their current superannuation funds and insurance to cut out any unnecessary costs. We made sure their superannuation was aligned with the retirement lifestyle they wanted for themselves and their family, and updated their insurance cover so that it continued to provide suitable risk management strategy for their family.

We also reviewed their current investment strategy outside of superannuation, and provided advice around a more efficient tax structure going forward.

The results

David and Kathy realised the following benefits from Annuity Strategic’s solution:

  • We gave our clients a high level of confidence that our conservative strategies would help them preserve their income in line with their spending and children’s education goals.
  • Comparing investment plans to state plans, we helped our clients select the best program based on their financial circumstances.
  • We provided advice around a more efficient tax structure going forward.
84%
Had No Insurance Strategy

Over 84% of our clients had no idea what they were covered for, the terms of cover and the conditions of the cover.

86%
Had Zero Savings

Prior to meeting with us over 86% of our clients had no medium to long term saving strategy.