Outcomes Of A Retirement Roadmap

Michael and Julie

In my article Do you need a Retirement Roadmap? I wrote about Michael and Julie, who are looking to retire in five years when Michael turns age 65. At that time they would like an income stream to meet their living needs of $20,000 per month. We projected their assets in 5 years to be:

Projected Cash Flow

They expect by retirement to live off their rent from the commercial office, rent from their investment property, and income from their superannuation as follows:

Despite accumulating significant assets by their retirement, they will not produce the income that they require to maintain their current standard of living. In fact we anticipate that they will have a significant shortfall of approximately $13,000 per month that will only worsen as the years progress.

Strategic Advice

We prepared a Retirement Roadmap that provided seven-step strategic advice for Michael and Julie to implement over the next five years. The advice focused on paying down debt and increasing superannuation contributions. With the same asset growth and return assumptions, we project that they should accumulate an additional $1.805 million in unencumbered assets as follows:

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By following our strategic advice over the next five years, we estimate that their cash flow will be enhanced as follows:

By following our strategic advice, Michael and Julie should enhance their cash flow by $168,866 per annum to ensure that they will be able to maintain their existing lifestyle throughout their retirement. Action Steps If you are retiring over the next decade, don’t leave your retirement dreams to chance. Phone us on 9160 0288 or email info@lanham.com.au to arrange to have a comprehensive Retirement Roadmap prepared.

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Disclaimer: This information is general advice only, & has been prepared without taking into account the objectives, financial situation, or needs of any individual. It is not a specific recommendation to buy, sell or hold any product or security. Readers should seek financial advice before making a decision & should consider the appropriateness of this advice in light of their own objectives, financial situation, &needs.