Jesse, 38,
Sydney

Category

First time investors, Single professionals

Financial experience

Somewhat experienced

Key goal

Build Wealth

Their situation
Migrated from China to Australia in 2007
She had recently received a redundancy payout and wished to take advantage of this payout to help build long term wealth
Apart from owning her own home she hadn’t proactively invested before and had no wealth strategy

Key outcomes

  • Has a clear vision of how she can continue to grow her wealth
  • In addition to her home, she is now the owner of three investment properties, one in QLD and two in NSW
  • Jessie’s property in NSW was cash flow positive after tax from day one and the value of this property grew from $400k to $1,000,000 within 7 years
  • She has a share portfolio working alongside her investment properties to create a diversified portfolio
  • A strategic financial plan was implemented, giving her confidence that she would be able to live comfortably in retirement

Understanding her situation

In 2012, Jessie was offered a redundancy package that included an optional meeting with a financial planner. While her manager encouraged her to take up the offer, Jessie had some concerns about meeting with a financial planner.

“Financial advisory isn’t common in China, so it had never come across my mind and I thought it was just for wealthy people. My redundancy package wasn’t a large amount of money. I was worried that a financial advisor would need me to invest more than I had, and that I’d be pressured to buy shares or a certain product.”

After doing some research into financial planners she spoke with one over the phone but didn’t feel she was a good match.

“It was unfortunately what I expected — she told me I needed a certain amount of money and then told me what I should be investing that money in.”

Jessie persevered and looked for alternate options, contacting Montara Wealth. Our team suggested she come and have an obligation-free meeting to talk about her situation.

The Process

When we first met Jessie, she felt that she didn’t have many options due to the responsibility of paying off a $300,000 mortgage as well as sending money back home to Hong Kong to support family. Her cash flow was tight and she was worried about taking on any extra risk. We started our analysis for Jessie by collecting information on her spending habits.

“David and his team were willing to help and that comforted me. The first two meetings with the Montara team were like peeling an onion. Peeling back the layers of my situation, gathering information bit by bit so they could do their analysis. They got into my world to understand my lifestyle”.

Working with Montara

A key part of our role is identifying our client’s strengths to help them to see their financial potential. For Jessie, we felt her strengths were:

  • She had a stable job with a semi-government agency earning $60,000 p.a.
  • She had a redundancy package
  • She owned an apartment as an asset in a market where values were going up
  • She wasn’t a big spender and was committed to make sacrifices to save money

Jessie found our external opinion on her situation gave her more confidence in what she could do with her money.

“David and his team gave me a clearer picture of my position and what I needed to do next, step by step. The reality was very different to what I originally thought”.

Jessie was saving every cent she could. If she could walk instead of taking the bus, she would. However, we helped Jessie to feel comfortable to spend more than she was, so she could have a better lifestyle.

“My savings strategy was to not spend much but the Montara team said to me, Jessie, you can live like this for a short time but you can’t live like that for the next 3-5 years. They put a plan in place for me where I could see clearly how I could maintain a certain lifestyle while also meeting my longer term investment goals.”

To start with, we analysed Jessie’s financial position and to give her a little leeway we referred her to Orium Finance where they refinanced her mortgage to a lower interest rate. We then presented Jessie with a rounded strategy on the various asset classes she could invest in.

Our goal for Jessie was to establish a baseline of investments that would work away for her in the background. After reviewing various scenarios in our model, Jessie decided to buy an investment property.

We guided her through a step by step approach to buying her first one. Our model factored in a buffer in case interest rates rose to make sure Jessie wouldn’t have any difficulties in this event. Jessie did independent research and consulted an investment property expert when deciding where to buy her investment property. She was careful to understand the pros and cons of the properties she was considering.

Jessie followed the plan carefully and continued her strong ability to save. Her dedication and hard work has transformed her financial situation — she is now the owner of three investment properties, one in QLD and two in NSW. Jessie’s investment property in Newcastle in NSW, has performed particularly well. It was cash flow positive after tax from day one and the value of this property grew from $400k to $1,000,000 within 7 years.

FIND OUT HOW WE CAN HELP

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Financial Advisers & Planners – Hire Fee Based Best Financial Advisors – Estate Planning Firms,
Wealth Management & Advice Experts, SMSF Specialists- Financial Consultant & Strategy that
is Best for You in Bondi, Balmain & Sydney – Montara Wealth

 

Suite 1, Level 6/309-315 George St, Sydney NSW 2000 | GPO Box 4473, Sydney NSW 2001
Montara Wealth Pty Ltd, ABN 14 625 010 344 is Corporate Authorized Representative of Montara Services Pty Ltd Licence No. 526747

Privacy Policy | Licensing Disclaimer | Financial Services Guide | Advisor Profile