ADVISER INSIGHT: Paul Dobbrick
Paul is a Director and Financial Adviser in the Gympie office. He genuinely cares about the impact good planning can have on his clients’ lives.
Paul’s areas of specialist expertise include personal investment planning, self-managed superannuation, direct equities, gearing, personal risk management and retirement planning.
He believes his job is to help alleviate the worry associated with getting your financial affairs in order. We spoke to Paul about how he helped a couple retire earlier than they thought would be possible.
When Jane and Damien met with Paul last year they had recently sold an investment property. The property had provided them with a good return, but they were anticipating a large capital gains tax bill. Damien and Jane were also starting to worry about their retirement and were concerned that they had some work to do before they could even think about slowing down.
Taking a strategic approach, Paul was able to help the couple to leverage their property sale by maximising their super contributions. He explained to Jane and Damien that they were eligible to contribute up to $330,000 as a non-concessional contribution, to their super as they had not made any non-concessional contributions this year. These earnings are taxed at the much lower rate of 15 percent, rather than the usual marginal rate.
With in-depth research into their past five years’ worth of concessional and non-concessional contributions to super, we were able to devise a strategy regarding making super contributions which would allow them to claim portions of the contributions as a tax deduction which could enable them to pay less capital gain tax whilst increasing their retirement savings. In some instances, capital gain tax can be eliminated completely using this strategy. With the weight of the tax bill off their mind Damien and Jane now had some head space to start thinking about their vision for retirement. They decided that they wanted to purchase a small home in a quiet coastal town where they could be close to friends, contribute to community and travel every two years. Damien was also keen on learning how to play golf and Jane, a keen gardener wanted to be able to invest some money in landscaping their new home.
After identifying the costs associated with their planned retirement lifestyle and an analysis of their overall financial position, Paul was able to prepare a budget, together with projections to give a clear picture on just how far away Damien and Jane’s retirement goal was. Much to their delight, Paul was able to break the good news that the couple could comfortably retire in two years’ time.
Paul says that it’s not unusual for clients to be pleasantly surprised to learn that they are closer to being able to retire than they thought. Seeking advice from an independent professional who can come up with strategies to maximise your financial situation, help you with your vision and do the maths can provide significant clarity. Good financial planning is the secret ingredient to a stress-free retirement. If you are starting to wonder how your retirement is shaping up, now could be the time to get in touch.
General Advice Warning: The information provided in this article is general in nature and does not consider your particular investment objectives, financial situation, or insurance needs; we therefore recommend you seek advice tailored to your individual circumstances before making any specific decisions.
Dobbrick Financial Services (Gympie) Pty Ltd ABN 48 931 205 109 and Dobbrick Financial Services (Ipswich) ABN 86 100 184 521 & DFS Oakland ABN 64 340 527 395 and their advisers are authorised representatives of Fortnum Private Wealth Ltd ABN 54 139 889 535 AFSL 357306.
