Margaret's journey to financial confidence
Margaret, a 66-year-old widow, was referred to us at q4 financial by an existing client after the tragic passing of her husband. Even though Margaret and her late husband owned their assets jointly, it felt as though she “inherited” significant assets, including a home, shares, superannuation, and an investment property, as she had had no prior involvement in managing the family’s financial matters. Margaret’s sudden role as the sole financial decision-maker left her feeling overwhelmed and fearful of her financial future.
Her family and friends had advised her that she would need to keep working and most likely keep working for the rest of her life. This lead her to adopt a frugal lifestyle, even though her assets were substantial. She needed educating and reassurance that she could live comfortably without the constant fear of running out of money.
How could we help?
Margaret needed both emotional support during a traumatic period and professional financial guidance. Our goal was to give her the confidence and knowledge necessary to manage her finances and ensure that her assets would sustain her long-term, without the need to work unless she chose to.
The q4 approach
At q4 financial, we took an integrated approach, combining the expertise of our accounting and financial planning teams to fully evaluate Margaret’s situation. Key elements of our process included:
- Financial Position: We ensured we understood Margaret’s current financial position which took some digging as it was all a bit of a mess.
- Goals and concerns: We ensured we understood what Margaret’s current and future goals were and her concerns so that we could develop a plan to reach them while at the same time eliminate her concerns.
- Strategy: We explored issues and options and came up with plan using strategies that would improve the structure of her assets, provide Margaret a regular income so that she did not have to work, set it up so that it was easy to manage, and provide Margaret with confidence that her money would not run out. Through detailed financial projections, we reassured Margaret that she didn’t need to increase her hours or make any rash decisions about selling her investment properties. She had the time to carefully consider her options.
- Portfolio Diversification: We created investment portfolios for Margaret to provide more robust and reliable income and growth.
- Tax Efficiency: We identified tax-efficient strategies to reduce and eliminate tax now and in the future.
- Education: We prioritised educating Margaret about her financial position and what we were recommending and why including the the benefits. By empowering Margaret with this knowledge, we ensured that she felt confident in making informed decisions about her financial future.
- Implementation and ongoing service: Once Margaret understood and felt comfortable she instructed us to move ahead with the plan, we assisted her to make all the necessary changes and investments to put the strategies in place. We continue to review and provide ongoing support and advice along the way to ensure her plan to remains relevant and provides her with what she needs – peace of mind and financial freedom.
- Estate Planning: We also worked closely with Margaret to ensure that her wealth would be passed on to her children in a manner consistent with her wishes in the form of a comprehensive estate planning strategy.
Margaret's financial outlook transformed and so did her wellbeing.
The annual income she now receives is more than she requires, allowing her to live comfortably without the need to work full-time, though she occasionally chooses to work part-time. Her improved financial situation has also given her the freedom to enjoy life—she now takes overseas holidays and lives without the fear of financial instability.
Perhaps the greatest achievement is how Margaret has grown in her understanding and confidence. She came to us uncertain and apprehensive, but today, she has complete ownership of her financial position, empowered by her newfound knowledge.
Margaret’s story is a testament to the power of informed decision-making and the peace of mind that comes with having a solid financial plan in place. At q4 financial, we’re proud to have helped her achieve both financial security and personal confidence for the future.
Smart choices today, financial freedom tomorrow!
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