Starting investing

The situation

Andrew, 32 and Nicole, 33 had ticked most of the boxes on their to do list: marriage, kids, first home. The next step was to start growing their wealth. They didn’t have enough money for an investment property, however had read a bit about shares in ‘The Barefoot Investor’.

How we helped

• We conducted a budgeting/cashflow analysis to determine their monthly surplus.

• We carried out a ‘risk profile questionnaire’ in order to find out their tolerance for investment volatility and preferred investment style.

• We helped them set up an investment account with regular monthly contributions. Andrew and Nicole know that share investment is a long-term strategy (ten years). They also understand that if the account grows to a reasonable amount in a shorter timeframe, they could utilise it for the deposit on an investment property (which is one of their medium-term goals).

• We set up an investment savings account for their child.

• We assessed their insurance needs to determine how much cover they needed. Luckily, they already had some cover within their superannuation funds, which we were able to combine with an income protection policy.

• Finally, we were able to find them a cheaper interest rate and refinance their current home loan, directing the savings back into the loan (and shortening their loan term by five years).

The results

Andrew and Nicole are happy that their wealth journey is back on track and look forward to the next stage.