Case Study: Harry & Bronte – Building Wealth Before Retirement
Harry and Bronte used their strong cashflow and home equity to invest strategically, boosting wealth before retirement.
By leveraging their mortgage, maximising super contributions, and reducing super fees, they’ve saved thousands in tax and costs.
They’re now on track to add over $300,000 to super and build long-term financial independence with confidence.
Written by William Lucas
Background
Harry (52) and Bronte (53) came to us with a common challenge: they were earning solid incomes and had built some equity in their home, but weren’t sure how best to use the next decade before retirement to put themselves in the strongest position possible. They wanted a clear plan to build wealth, reduce tax, and make sure their superannuation was working harder for them.
What We Did
1. Smart use of the mortgage facility
Rather than letting their home equity sit idle, we structured their mortgage to fund a deposit for an investment property. This allowed them to enter the property market without needing to sell down other investments. The additional debt was managed carefully within their budget, with repayments comfortably covered from their cashflow and rental income.
2. Maximising super contributions
Harry and Bronte had unused concessional contribution caps from prior years. We recommended they each make around $30,000 of deductible super contributions annually for five years, using the carry-forward rule.
This reduced their taxable income significantly each year, saving them around $9,600 in tax annually each ($19,200 combined).
Over five years, the strategy results in nearly $100,000 in tax savings while boosting their retirement balances.
3. Super fund review
We compared their existing super funds to industry-leading options. They were paying around 1% p.a. in combined fees, which equated to approximately $6,000 a year on their balances. By moving to a lower-cost fund with fees closer to 0.5% p.a., they now save about $3,000 each year in fees, and this saving will grow as their balances do.
More importantly, we adjusted their investments to be growth-focused in the near term, with a plan to progressively de-risk as retirement approaches.
The Result
Harry and Bronte now:
Own an investment property that is building wealth for their future.
Are on track to add an additional $300,000 to super (plus investment returns) before retirement, while saving close to $100,000 in tax.
Are saving around $60,000 over the next 10 years in unnecessary super fees, money that stays invested and compounds for them instead.
Have peace of mind knowing their super is invested appropriately for their stage of life.
Key Takeaway
With the right advice, Harry and Bronte have turned their strong cashflow and home equity into a clear path toward financial independence. By combining property investment, superannuation strategies, and fee savings, they are making the most of the years leading up to retirement.
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The information in this article is general information and does not take into account any person’s individual situation. You should always do your own research, or seek professional advice to assist you in making an informed decision about what suits your needs.