Jan and Trevor, both 65 years old, owned four investment properties worth $1.9 million, along with their home. However, they had a significant debt of $878,000 across all properties and very little cash or superannuation savings. Their original plan was to sell investment properties as needed to fund their lifestyle, assuming they wouldn’t qualify for the Centrelink Age Pension.

Despite having substantial assets, they struggled with cash flow and found managing their properties increasingly difficult as they wanted to slow down and travel more.

They recognised that their financial strategy wasn’t sustainable in the long run. They were concerned about their high debt levels, the tax implications of their property income, and the effort required to manage multiple properties. They wanted a simpler, more secure plan that allowed them to enjoy their retirement without financial stress.

After carefully assessing their situation, we recommended a structured approach to simplify their finances:

● Selling Three Investment Properties Over Two Financial Years – This allowed them to spread out the capital gains tax (CGT) impact.

● Using Concessional Super Contributions – By utilising unused concessional caps, they could offset much of the CGT.

● Paying Off All Debt – This eliminated their $878,000 in loans, improving cash flow and reducing financial risk.

● Boosting Super with Non-Concessional Contributions – This helped them take advantage of a tax-free income stream.

● Qualifying for the Centrelink Age Pension – By structuring their assets correctly, they would become eligible for government support within a couple of years.

Jan and Trevor felt a huge sense of relief knowing they had a clear financial strategy that provided security, simplicity, and flexibility. They no longer had to worry about managing multiple properties or dealing with debt. Instead, they could enjoy their travels and retirement lifestyle with a stable, tax-free income stream and the reassurance of additional Centrelink support in the future.