Josh is a chippy, and a really good one. He has a young family and he and his wife purchased a block of land a couple of years ago on which Josh and his mates built a home. Whilst the home was comparatively low cost due to the nature of Josh’’s business, his wife has recently given up work to look after the unexpected arrival of twins!
This was a case where the house of cards (pardon the pun) could easily topple if Josh was unable to work. We completed a needs analysis and recommended life, disability and income protection insurance. We minimised the cost of these insurances by having some of the premiums deducted from Josh’s superannuation balance, with income protection being held outside of superannuation to maximise the tax advantages.
We also performed some calculations which showed Josh and Mel how to take ten years off their mortgage by increasing their payments slightly. We examined their personal cashflows to demonstrate that this was affordable and established a household budget to help them along the way. We will check in with them acouple of times a year to see how they are going.
Its easy for Josh to get distracted by the noise from his mates. We have needed to remind him what is important to him, and that “Joe down the pub” is not the best place for financial advice.