In the beginning

Karen was in her mid 50’s when referred to us by her accountant. As a high earning consultant in her own business, she was looking to diversify her investments and assess her overall financial position.  This was very important to Karen because as an independent woman, she had no one else to rely on and wanted to ensure financial security for her future retirement and beyond. At the time, Karen held minimal insurance. She had previously invested in property, with mixed success. She had little in superannuation because it had not been her priority. Karen also had investment debt but happily, no personal debt.

Applying the CKM process

The full review we undertook of Karen’s financial house revealed significant gaps in her insurance - no trauma insurance and minimal income protection cover. Fortunately, Karen acted upon our advice to address these shortcomings, which later proved important for her financial future.

Clae also started an investment portfolio for Karen that provided greater liquidity and diversification from a single asset class (property) where she was currently invested. Superannuation became a focus in building wealth alongside her other investments. Because we illustrated how it provided tax efficiencies now and in retirement, Karen was happy to make super an active part of her investment portfolio rather than the afterthought it had been previously.

The cash flow models and budgets we prepared gave Karen a clear indication of when she could afford to stop work and the income she could expect in retirement. Subsequently, Karen was happy to receive and act upon our further advice on wealth building and diversification to meet these goals.

The Outcomes

There is a bittersweet ending to this case study.

Without doubt, the changes we instigated led to a significant improvement in Karen’s finances. With diligent reviewing of her plan, accompanied by appropriate and timely adjustments, she was clearly on track for her goal of financial independence, accompanied by a positive retirement experience. So much so that on the passing of her mother, Karen was able to buy the family home from her sister and add this to her portfolio. 

For most clients this case study would end here. Alas for Karen, things took an unexpected turn on the day she received notice that her routine National Bowel Cancer screening test showed a positive result.  But that is the story for a different case study.  Read more here.  However, without doubt, by being much stronger financially, Karen was in a much better position to take on, and ultimately overcome, the challenges that cancer sent her way.

In her own words

“No one plans to get cancer, but by the time I got my diagnosis, my finances were in good shape. Knowing that my insurance policies had me covered financially, meant that I could focus on my medical issues and challenges. Looking back, all the work that I’d done with CKM to get ready for retirement paid off enormously, given my unexpected medical issues.  In many ways, their financial care was nearly as important as my medical care to get me to where I am today.”

The story of Karen’s cancer journey, including insights from Clae and Kristen from CKM Advisers can be heard in her podcast “Love, Laughter and Loo Time”, episode 3 “Insuring is Ensuring Peace of Mind.” and she has now been appointed a Community Ambassador for Cancer Council NSW.