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.