
Escaping the Rat Race:
- Felix and Cindy want to retire from their high-stress corporate jobs as soon as possible.
- They have two young children and want to renovate their old home.
- The couple is focused on building a portfolio of investment properties to generate passive income.
- They are considering selling one of their investment properties to reduce their home loan and fund the renovation.
- Felix earns around $600,000 per year while Cindy works part-time as a doctor.
- They need to decide between public or private schooling for their children.
How to Build Wealth with High Income:
- Despite having a high income, Felix and Cindy realized they were spending two to three times more than average clients.
- They decided to trim unnecessary expenses and prioritize saving for financial independence.
- The couple has set clear goals, including retiring early, renovating their home, and taking a sabbatical overseas.
- By aligning their spending habits with their goals, they can fast-track their journey towards financial freedom.
- Building passive income through investments like quality properties and superannuation funds is key.
Renovation and Education:
- The couple has the ability to do renovations due to income from their side hustle or new business.
- They have chosen government public schooling for their children's education expenses but may consider private school in the future if their incomes increase.
Property Investment Strategy:
- The couple purchased two investment properties and sold a non-performing property.
- They used Medeco financing to secure interest-only loans at a 90% loan-to-value ratio without paying lender's mortgage insurance.
- They plan to use $100,000 of cash for home renovations and borrow around $800,000 in non-deductible debt for their dream home.
- Smaller value bonds will be sold early to help reduce the overseas year loan while larger value bonds will be kept until maturity.
- They will rent out their home while they are overseas to generate income.
Retirement Planning:
- Felix plans to quit his corporate job before going on the year-long overseas trip.
- Cindy loves working and intends to continue part-time until after age 60.
- Retirement planning is conservative, taking into account potential changes in circumstances.
Transformation and Clarity:
- Through the planning process, the couple gained clarity on their spending patterns and future goals.
- Having a clear vision empowered them with confidence to execute their plan.
- These case studies highlight how tailored planning is important as each household has different wants, hopes, and dreams.