The 3 KEY Elements To Build Financial Success!

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Concept #1:

To achieve a better future, all 3 financial elements of a successful financial result at retirement need to be sorted into a sustainable, balanced solution that all work with each other.

The 3 financial elements are:?

1. Planning,?
2. Investing,?
3. Protecting.

Your retirement plan needs to align with your investments ?? which need to be aligned with your insurance ?? which needs to be aligned with your plan ?? which needs to be aligned with your investments ?? and so on, and so on, as you go through your working life.

Think of the elements in your financial world as an equilateral triangle. All?three points of the triangle have an exact 60 degrees internally.

• All three points represent the different financial elements.
• All 3 financial elements are as important as each other.
• The 3 points need to be equally balanced and aligned with each other to assist the other points in getting you where you want to go.

If the 3 points aren't equally balanced, you're likely to be unbalanced on 1, 2 or 3 financial elements, for example:

• Failing to create a retirement plan, so guessing how you should be structuring your KiwiSaver and investments around what you're trying to achieve.
• Not investing enough because you're paying too much for your insurance, or vice versa.

If 1, 2 or all 3 of these elements are missing from your plan and are relevant to your situation, your chances of getting to where you want to go are reduced.

The 3 elements count on each other to be accurate.?And in monetary terms, this simply means less in your pocket for retirement.

Case Study: Mike and Emma, Ages 42 and 41, Auckland, Mid-Career Professionals

With a $550,000 mortgage, they implemented a strategy to:

• Maximise their KiwiSaver government and employer contributions.
• Make an additional $300 of monthly mortgage repayments (50% of their surplus funds after their mortgage and P&I mortgage expenses).
• Maintain their KiwiSaver contributions of 6% each, but revise their allocation and risk vs reward strategy.
• Add an investment fund incase they can retire earlier than age 65, contributing 20% of their surplus funds.
• Purchase a high rental return investment property using the collateral from the equity in their home, investing 30% of their surplus funds into topping up the shortfall of their rent minus the OPEX (operating costs).
• Increase their existing low-level of income protection they purchased years ago, extending it to pay until age 65 (worst case), then stop their premiums going up every year with a level premium, long-term savings estimated at $41,256.
• Add beneficiaries to their life insurance, so the money would get to each other within a couple of days, instead of being handled by the lawyer and taking weeks.

Planolitix result by age 65 (our planning software):

• Saved $155,976 in mortgage interest
• Reduced their mortgage term by 6 year
• Gained an additional amount to re-invest at age 60 of $69,167 (investment fund) then another $1,320,000 at 65 (KiwiSaver).
• This was modelled to achieve $55,603 of extra income for retirement (in today’s money).

Here's a quick one-minute video to explain how you can align and balance all 3 financial elements:

Hope this helped!

Chris George | Personal Finance Adviser

?? Let’s get our fine country financially educated! Please share this to one friend who you think would benefit.

?? ?? Take the red pill today and see how deep the rabbit hole goes. This video explains how a couple could accumulate an extra $1,200,000 in Kiwisaver over the next 25 years, without increasing their contributions or risk: https://app.bridgefinancial.nz/free-training ??

???? ?? Let's sit down and figure out how you can get you off that hamster wheel, how to get that monkey off your back (mortgage), and how to map out a future you can look forward to. Schedule a time to chat below:

Note: Any information provided is for general and educational informational purposes only and is not personalised advice. Your circumstances are unique and there’s no templated road to a cushy retirement! For personalised advice, please book a Strategy Call.