Pete's story

Pete and Donna were 36 and 32, respectively. They had two young daughters, Lily aged 8, and Olivia aged 5. Peter worked full-time while Donna worked part-time. Donna planned to increase her hours but not for at least eight years. They owned their own house. However, they did have a significant mortgage.

Their budget was extremely tight because of their mortgage and what seemed to be the ever increasing costs of living. While the cost of the girls' education was currently manageable, they knew it would increase as the girls got older.

Pete and Donna felt like they were just keeping their heads above water and also thought things would get harder. They didn’t know what they should or shouldn’t be doing. They made the wise decision to go and see a BankVic financial planner to get advice.

Their meeting with the financial planner involved discussing all aspects of their current situation, their plans for the next five years and well beyond. Even at this early stage, Pete and Donna felt they had made progress. They agreed to have a financial plan prepared for them.

After discussing with their financial planer, they agreed that the issues that needed to be covered were:

  • How to make certain they continue to meet their day-to-day living expenses
  • How to fund the girls' education expenses over the next 13 years
  • How to repay their home loan in the most effective way
  • When and how to make contributions to superannuation
  • Arrange appropriate personal risk insurance to ensure they would still achieve their goals regardless of accident or injury
  • Advice regarding their existing superannuation funds
  • How to save for their retirement in a tax-effective way, using a combination of savings and superannuation contribution strategies
  • Develop an investment strategy matching their comfort level with investment risk
  • Upon death, ensure their assets (including super) pass to the intended beneficiary with certainty and tax effectiveness.
Pete and Donna now have a comprehensive plan on everything they should do, both now and over the coming years. They were thrilled to know that they could and would achieve all their goals.


BSB: 704 230

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