Hello!
Please find our case study notes below:
Background:
28 year old single female living in Adelaide
Works as a HR manager earning $120K per annum plus Super
Has $90K in savings, no consumer debt, just HECs
$57K with Hostplus in the default Balanced Option
No investments
Never sought advice before
Has listened to different podcasts and read books and needed help/direction with her finances
Her initial goals:
Purchase her first home in 12-24 months time
Enjoys travelling, so wishes to be able to do an annual overseas trip
Heard about income protection and wants to ensure her income is protected as she works towards a house purchase
Would like to have the option of retiring earlier (50) / or doing another career / something she can volunteer
Wants to ensure her Super Fund is set up correctly for her future
Advice:
Reviewed spending habits and set clear structure for her banking including multiple accounts for discretionary, fixed, holiday and house deposit.
Separated $77K into the house deposit and $10K into an emergency buffer account.
Started a holiday account with $3K and transfer $288 per fortnight (pay cycle) into this account.
Put $15k of the $77k as FHSSS in both FY 23 and FY 24 (prior to purchasing first home). *approx. $6K in overall tax savings
After reviewing her cashflow, there was $1,200 per fortnight spare. We were aiming for a 20% deposit plus stamp duty to avoid LMI so decided to put aside $827 per fortnight to have the $120K deposit in 24 months time.
This left $373 per fortnight to commence an investment plan which we chose Vanguard Personal Investor as it has auto invest functionality that was important to her so she could be hands off. Invest in to Vanguard High Growth Managed Fund (as it was a long term investment).
Review of her Super Fund meant we changed her super fund to a significantly lower fee one and changed the investment to be high growth to suit her long term time horizon after completing our risk tolerance questionnaire.
As she had no pre existing health concerns we replaced her existing insurance with a retail insurer.