Case Study: Tom & Michelle – A Strategic Path to Financial Confidence and Future Flexibility
Written by Lance Swansbra
Meet Tom and Michelle
Ages: Tom is 55, Michelle is 52
Occupations: Tom works in Human Resources; Michelle is a Medical Researcher
Household Income: Approximately $250,000 per annum
Assets:
Own their family home
Investment property in Brisbane
$600,000 in combined superannuation
Recently received a $600,000 inheritance (currently sitting in cash)
Their Goals
Tom and Michelle enjoy travel and would like to continue going overseas every couple of years. They are considering a move to Queensland for retirement to enjoy the warmer climate.
While they don’t have firm plans to retire immediately, they’d like to reach a point where work is optional, or at least scale back their hours without financial worry.
The Challenge
Their $600,000 inheritance has been sitting in a cash account for 12 months, earning interest that’s being taxed at around 32% per annum.
They have never made extra contributions to super and admit they don’t fully understand how it works.
They’ve never really reviewed how their super is invested or looked into whether they are paying excessive fees.
Our Advice
1. Boost Super Contributions
We recommended that Tom and Michelle maximise their tax-deductible super contributions over the next two financial years.
This strategy alone is expected to reduce their tax bill by around $40,000.
Continuing to make these contributions through to retirement will provide ongoing tax savings.
2. Make a Large Tax-Free Contribution to Super
While this type of contribution doesn’t result in a tax deduction upfront, it shifts money into an environment where:
Earnings are taxed at 15% instead of 32%
From age 60, earnings can become tax-free
Since Tom is closer to 60, we directed this contribution into his super account.
3. Maintain Access to Cash
Tom and Michelle wanted to retain access to some funds, so they’ve decided to keep $200,000 outside of super for flexibility and short-term plans.
4. Understand Their Investments
After educating them on risk and returns, Tom and Michelle discovered they are comfortable as balanced investors, meaning:
About 60% of their super should be invested in shares and property
Surprisingly, over 90% of Tom’s super was already allocated this way—something he was unaware of, especially concerning during market volatility.
5. Reduce Fees on Super
We reviewed their current superannuation options and identified:
High-fee investment options
No added performance benefit compared to lower-cost alternatives
Switching to more cost-effective investments is expected to save around $30,000 in fees over the next 10 years.
The Outcome
With our advice, Tom and Michelle are on track to reach a point where work becomes optional within 8 years.
Overall, they are projected to be $400,000 better off than if they had continued without making changes.
Most importantly, they now feel informed, confident, and optimistic about their financial future.
Tom and Michelle are now excited about the future, they can see a light at the end of the tunnel and no longer stress if they’re doing the right thing with their money. We’ll continue working together to make adjustments as things change.
We’ll continue to work with Tom and Michelle over time, adjusting their plan as life changes—to ensure they remain on track and empowered in every stage ahead.
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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.