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Helping investors find new paths to wealth

18 November 2020

Money & Life team

Money & Life contributors draw on their diverse range of experience to present you with insights and guidance that will help you manage your financial wellbeing, achieve your lifestyle goals and plan for your financial future.

We’ve partnered with OneVue to share their latest Secrets of Money Masters, a series highlighting the stories of everyday Australians and how they have worked with a financial planner to navigate difficult financial circumstances and come out feeling more informed, empowered and secure in their financial futures.

Today, more than 70% of Australian wealth is invested in Australian assets – property, Australian equities and term deposits. While this model has served many of us well up to now, current uncertainty around house prices and interest rates at all-time lows, many people are beginning to question this traditional path to financial security.

With many retirees set to outlive their money, there is an urgent need to think differently in our approach to wealth accumulation. Yet many people don’t know where to start, and have difficulty assessing investments outside the norm.

So, the burning question is: with the traditional path to wealth challenged, where should investors look now?

Kate and Greg’s story

Kate, 45, and Greg, 49, are originally from Melbourne, though they’ve been living in the Blue Mountains for the past three years.  They are currently in the process of relocating back to Melbourne to live in their family home that they have been renting out as an investment property.

Greg travels a lot for work, and Kate is the primary carer for their three primary school-aged children. Before kids, Kate worked at the family law court, and plans to go back to work when they move back to Melbourne, bringing more cashflow into the household. Greg works in a corporate job and earns a good salary.

They both have a keen interest in money and investing, and have renovated three properties which they sold for a good profit. They also have a good portfolio of direct Australian shares. While they believe property is a winner, and are willing to get their hands dirty (Kate runs the renovations herself and is very skilled) they don’t think it’s the only answer. Greg is eager to diversify their investments to set them up for the future, and is passionate about investing in unique things like whiskey, champagne and art.

They are both keen to see themselves set up by sixty and to travel the world and enjoy themselves once the kids have grown up. They recognise that learning about other investments may help them reach their Kate is knowledgeable about money also, and enjoys day trading her shares. Both are keen to learn more about other investments that they may not know about. They have a goal to hit $5 million in assets by retirement including the value of their Melbourne home.

Kate’s super balance is quite low, while Greg has a considerable balance. Both believe the way to a good retirement sum is to have their eggs in a number of baskets. They are eager to get advice from experts on what they can do to achieve their retirement dreams and give their three kids a helping hand.

The Secrets of Money Masters series partnered with UBS and FPA member, Deborah Kent CFP® to take a closer look at Kate and Greg’s situation, their ambitions and have an expert panel provide insights and alternative ideas to help Kate and Greg – and other Australians in similar situations – achieve their retirement goals. You can watch the series here and hear more insights from the panel of experts.

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