Financial planning case studies

Here are some examples of expat financial plans. Read these to gain an idea of real life situations where we can help plan for the future.

Case study: Saving for the next generation’s education

Danny is a business owner (aged 35)

He has been building a retirement fund for three years, saving for his children’s university fees.

Danny is a successful young entrepreneur who has set up a niche e-commerce company in Asia and has excess money each month. He is Australian and is married to a non-Australian national. Although he owns property and a business with a substantial goodwill value, he wishes to invest money offshore as a hedge against currency devaluation and risks posed by future potential financial crashes.

Danny has no lump-sum savings to invest, but he does have time on his hands and by starting early he can save regularly in a plan that will mature nicely over a 15 year period. He began contributing $1000 per month a few years ago and he has increased his monthly savings figure gradually, in line with the increase in his income from his business.

Danny’s aim with this plan is to be able to pay for his children to attend university in the Australia. The plan is flexible enough to allow Danny to draw down from the funds to help pay for the final years of an International School education if he chooses, or for any other unforeseen circumstances.

Speak to us about planning for your children’s education fund.

Case Study: Restructuring

Anton: retired school teacher (aged 66)

Anton was a client of a well known European ‘private bank’ when we met him. He had retired from Austria where he had been a school teacher at a private school. Some unfortunate timing with the bubble and some personal diversions meant that Anton was now struggling to make ends meet. With only a modest pension income (taxed in Austria) his investment income was not managing to make up the short fall. Long term this meant that even modest inflation would quickly erode both his capital and his living standards.

Anton’s investment portfolio was surprisingly invested almost entirely in bonds yielding at the time around 3.5%. For the privilege of holding these bonds, which were simply bought and held to redemption, he was being charged 1.5% a year.

Anton’s investment was restructured to target greater returns and with the objective of providing sufficient growth to allow a comfortable standard of living that would keep up with inflation.

The result of this means that instead of now spending capital to make up his income shortfall, he now enjoys a comfortable income and a growing capital value of his investment.

Anton does not have anyone who is directly financially dependant on him. He has nominated 4 beneficiaries to his estate who will receive their inheritance directly, without having to go through the probate procedure and in full.

Speak to us about how we can help you get the most out of your retirement savings.