Case Studies

Business Succession Case Study

Transitioning to a New Chapter with Holistic Financial Planning

In the world of accounting, where tax returns may seem mundane, we often discover extraordinary tales just waiting to unfold. This story begins with a seemingly simple tax client, but it’s a story of transformation, business succession, and the magic of holistic financial planning.

From humble beginnings

Two visionary partners embarked on a journey in IT consulting with little more than a pen, a piece of paper, and boundless determination. Their startup was like a sapling in a crowded forest, but they nurtured it with hard work and audacity.

The transformation begins

Enter our Financial Planner, who saw beyond the tax return and into the wealth and potential transition opportunities. A thorough examination revealed an unsigned shareholders’ agreement, insurance linked to this unsigned document, and substantial growth in the business.

The challenge: Business succession and tax complexity

The partners faced an impending tax and succession nightmare. Capital gains tax loomed, and without a signed agreement, their financial future was uncertain.

Geoff’s approach – holistic financial planning

Geoff took charge with a comprehensive financial strategy that he crafted to minimise the tax on the company’s transition and future business sale, ensuring a smooth succession.

The planner ensured that in case of a partner’s passing, the full value of their share in the business would seamlessly pass to their beneficiaries.

The journey continued as personal estate planning became a priority, guaranteeing that the family’s wealth and story would endure.

A new chapter unfolds

With the business succession plan in place, the partners moved on to the next phase of their lives. The business was eventually sold, and they embraced each step of their journey, secure in the knowledge that their family’s financial wellbeing was assured.

Holistic financial planning for a lasting legacy

This case study reminds us that even in the world of taxes and accounting, a touch of magic can transform humble beginnings into enduring legacies. Business succession, a new chapter, and holistic financial planning can pave the way for a secure and prosperous future.

Estate Planning Case Study

John and Linda’s Journey

In the realm of financial planning, estate planning serves as the cornerstone upon which all else is built.

Just as the wise management consultant Steve Covey once advised, “Begin with the end in mind.” This wisdom holds true in the world of finances, where a well-crafted estate plan can provide peace of mind, ensuring your loved ones are cared for long after you’re gone, and your family’s legacy continues to flourish.

John & Linda

John and Linda are a successful and accomplished couple who have dedicated their lives to building a remarkable legacy.

John, a business executive, and Linda, a cherished partner, had amassed a significant portfolio of assets. These assets had not only grown in value but also carried substantial unrealised capital gains tax implications.

To add complexity, John found himself in the top marginal tax bracket, having used strategic financial planning techniques like negative gearing to create wealth. Despite their financial achievements, they shared a strong commitment to leaving a positive mark on the world.

The estate planning challenge for Geoff

John and Linda turned to Geoff for guidance in crafting an estate plan that would serve several vital purposes:

Tax efficiency: They sought to minimise tax liabilities wherever possible, ensuring their hard-earned wealth remained intact.

Lifetime care: The surviving spouse, Linda, needed to be cared for throughout her life, ensuring financial security.

Equal legacy: In the event of both passing away, their desire was that each of their children, regardless of their circumstances in life, would be treated equally in terms of inheritance.

Multi-generational wealth: Furthermore, they wished for the inherited wealth to be tax-efficient and preserved within the family for generations to come.

The estate planning solution

With meticulous planning and unwavering commitment, Geoff successfully delivered on these objectives. There were no surprises when it came to costs, and the process was completed quickly – John and Linda were thrilled with the results.

The New Chapter

With their estate planning secure, John and Linda felt a profound sense of relief. They went on to engage Geoff for his help in charting their path to retirement, knowing that the most critical aspects of their financial and personal future were in capable hands.

Transformation complete

This case study illustrates how a thoughtful estate plan can work like magic, transforming uncertainty into peace of mind. It’s a testament to the power of careful financial planning and the expertise of professionals committed to making dreams come true.

Retirement Coaching Case Study

Longevity Planning

At Real Life Financial Planning, we believe that retirement should not be a one-size-fits-all approach. It’s about creating a life plan that extends well beyond the traditional idea of watching sunsets on deserted beaches or spending time with grandchildren.

Our different approach to retirement coaching and longevity planning ensures that our clients plan to live not just a happy retirement but to a remarkable age of 100, embracing every moment of their journey.

Typical retirement questions

Geoff recently met with a couple in their late 50s who had the typical retirement concerns:

• Do they have enough money to retire?
• How long will their retirement funds last?
• When can they stop working?

A retirement challenge

Upon closer examination of their financial situation, Geoff uncovered a significant challenge. Their accountant had recommended negative gearing as a tax-saving strategy, even though they intended to retire. This recommendation lacked an understanding of their retirement goals and needs, leading to an ill-suited investment that would result in substantial losses upon disposal.

Despite being high-income earners, the couple didn’t appear to be saving adequately for retirement. There was also a discrepancy between their current lifestyle and the income they believed they needed in retirement.

Traditional retirement planning

A traditional approach would have focused on optimising the couple’s position, forecasting retirement income requirements, and addressing essential tasks like estate planning and superannuation fund selection.

Geoff’s approach – longevity planning with a difference

We go beyond traditional retirement planning by helping clients envision the life they want to lead, not just limited to life expectancy but extending beyond to 100 and beyond. For this couple, Geoff began by establishing a solid financial foundation for retirement.

But the work didn’t stop there. The couple enrolled in our retirement coaching program, a critical step in our longevity planning process. This program allowed them to:

• Create a clear vision of their next chapter in life, factoring in different life stages they might encounter.
• Identify activities that would provide purpose and passion, going beyond the cliché of watching sunsets and spending time with grandchildren.
• Strategically stagger their retirements, avoiding both retiring simultaneously and gradually unwinding their tax-inefficient investment.

Long-term results

With a deep understanding of their goals, Geoff ensured the couple’s retirement income would last a lifetime, regardless of how long that might be.

He optimised government incentives and provided financial security, ensuring their relationship remained strong, enabling them to continue writing new chapters of their life story.

A change that makes a lasting impact

Our retirement coaching and longevity planning approach empowers clients to create a future that’s tailored to their aspirations and life journey. We believe that retirement is not just about financial security – it’s about embracing every moment – and this case study demonstrates just how we do it.

Case study

Rosie’s story

At Real Life Financial Planning, we hold a profound belief that financial wellbeing should be accessible to all, irrespective of wealth or social standing.

In a world where many financial planning firms base their success on the size of your bank account, we take a different path – one that is rooted in a holistic approach to financial advice, guided by principles of accounting, estate planning, and succession planning.

We understand that true financial advice transcends transactions – we believe it’s about transforming lives.

Our philosophy is grounded in the understanding that a sense of purpose is a fundamental component of a fulfilling life, and this sense of purpose can evolve at various stages of one’s journey.

Meet our client Rosie

Rosie was introduced to us by a mortgage broker who had previously assisted her son in purchasing properties.

At the time, Rosie was in her late 50s, residing in a small rural town in Western Australia, and was actively involved in her local community.

She worked as a librarian while her husband held a public service job. Their migration to Australia was fueled by the hope of better opportunities for their young family, and they had settled into a contented life, diligently paying off their mortgage.

An uncertain future

However, life took a heartbreaking turn when Rosie’s husband was diagnosed with early-onset dementia. The prognosis was bleak, and it meant that Rosie would need to give up her career and become her husband’s full-time caregiver.

The couple still had a mortgage to pay, and their superannuation was modest. Rosie was overwhelmed when she came to us, facing the daunting prospect of relocating to the city to be close to her children, selling their home, and living a humble existence due to financial constraints.

A glimmer of hope

When Rosie first walked into our office, we didn’t possess an immediate solution to her complex situation. Yet, we assured her that we would explore all avenues to address her needs.

Rosie and her son left our office with a glimmer of hope, knowing that we were dedicated to finding a tailored solution for them. Rosie’s story was just beginning, and so was our journey to make a difference.

What we recognised in Rosie was her spirit, unwavering determination, and a strong sense of purpose. She possessed the right mindset to surmount obstacles, and crucially, she had the unwavering support of a close-knit family.

Rosie had three children, and one of her sons was designated to be deeply involved in the process and support her in discussions with us.

Another critical element was her son’s willingness to support his parents, even though their own house was too small to accommodate everyone comfortably.

Geoff’s solution

At Real Life Financial Planning, we use a holistic approach – one that combines both head and heart. Drawing from this, we set out to create a solution for Rosie that not only addressed her immediate needs but also preserved her financial security, family unity, and sense of purpose.

Recognising the importance of long-term financial security and family unity, we embarked on a meticulous estate planning journey. Rosie’s primary objective was to ensure her husband’s wellbeing and protect their family’s legacy for generations to come.

Given the modest superannuation and financial constraints, we crafted an estate plan that safeguarded the family’s assets, ensuring that Rosie’s husband would receive the necessary care and support throughout his life.

Rosie’s family was profoundly close-knit, bound by deep bonds of love and support. Our estate planning was designed to secure the financial future of the family’s next generations, minimising tax implications and simplifying the process of passing down assets.

To secure Rosie’s right to live in the property for life, we engaged legal experts to draft a legally sound agreement. This ensured that her interests were protected, and the arrangement was in full compliance with the law.

A robust plan to give Rosie confidence for the future

Our solution for Rosie was not just a financial plan – it was a comprehensive strategy that addressed her immediate needs while safeguarding her family’s legacy for generations to come.

By combining financial expertise, estate planning, and an understanding of the family’s unique story, we were able to create a solution that truly transformed Rosie’s life and left a lasting impact on her family’s future.

The Real Life Financial Planning philosophy

We believe that financial planning is not just about numbers – it’s about building a legacy and ensuring a secure and prosperous future for you and your loved ones.

Rosie’s journey exemplifies our commitment to making a meaningful difference in the lives of our clients, regardless of their means or circumstances.

Through head and heart financial planning, we aim to transform lives and empower individuals to face life’s challenges with confidence and purpose no matter what storm clouds may lie ahead.

Giving Rosie her power back

In Rosie’s situation, it encompasses the power of financial planning in our eyes. We were not only able to provide Rosie with a foundation to make a difference in her life but the lives of so many around her through a ripple effect that has spread throughout the broader community. We were proud that we were able to provide financial advice that was good for the soul.

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