This couple came to see us as they struggled with the money issues involved in blending two families following each of their separate divorces. Having had sometimes bitter experience of how money issues can come back to bite you, they needed a long-term plan as to how best mange their quite substantial incomes, and what to do with the surplus funds. Should they pay off their houses (which were both now being used as investment properties), should they invest now rather than reduce debt, should they invest via superannuation or personally, how could they accumulate funds to purchase a home together?

For these clients a detailed and clear path forward was essential. Much of our time was spent analysing their lifestyle cash flows to work out what they could safely commit to a debt reduction and investment program. In particular, their stated aim of purchasing a home together in five years time needed to be provided for, yet they wanted to retain at least one of their former homes as an investment. We were able to reassure the clients that this could be achieved, and also that their longer-term goals around retirement dates and income needs were also possible.

This was a case where long-term modelling of someone’s financial life was necessary. We were able to build some sophisticated models then work through some what-if scenarios with the clients so that they could have the confidence they needed as they move into the next phase of their lives together. We found this a particularly challenging yet rewarding assignment and were delighted with the positive feedback we received when we presented our findings to the clients.