Background

Meet the Rossiter’s, a young family eager to secure their financial future. Eileen and Brian, both in their early 30s, were keenly aware of the importance of financial planning, especially with two young children, Emily and Noah to care for. They were determined to make the most of their hard-earned income and set their family on a path to financial security.

Challenges

The Rossiters faced several financial challenges:

  • Long-Term Financial Security: With two young children, Eileen and Brian wanted to ensure their family’s long-term financial security, including funding their children’s education and providing a comfortable retirement.
  • Tax Efficiency: They were concerned about the potential tax implications of their investments, particularly for the children’s future.

Solution

The Rossiters turned to Elevate Financial, a trusted financial planning firm. Elevate Financial recognised the family’s unique needs and designed a customised solution:

  • Monthly Savings Scheme: Elevate Financial helped the Rossiters establish a Monthly Savings Scheme. By coordinating a complete cashflow plan, the Elevate team was able to determine how much the family could comfortably set aside for monthly savings each month. This allowed them to systematically save a portion of their income, ensuring a disciplined approach to wealth accumulation. In addition to this, the Rossiter’s benefited from having their savings in a dedicated monthly scheme that wouldn’t see the same impacts of inflation than if they kept the money on deposit in a bank account.
  • Child Savings Scheme: Elevate Financial also introduced a Child Savings Scheme for both of Eileen and Brian’s two children. Availing of the Gift Tax exemption for parents, Eileen and Brian utilised savings and monthly child benefit to set aside funds for both Noah and Emily. Under this scheme, the savings would be placed in trust for the children, shielding them from future tax liabilities as they became financially independent.

Results

The Rossiter’s commitment to their financial plan yielded significant results:

  • Growing Wealth: Through the Monthly Savings Scheme, the Rossiter’s saw their wealth steadily grow over time, helping them achieve their short and long-term financial goals.
  • Protected Future for Children: The Child Savings Scheme ensured that Emily and Noah would have a financial safety net as they reached adulthood, with no tax liabilities to worry about.

Benefits

The benefits of the Rossiters’ financial planning journey were substantial:

  • Financial Security: The family now had a solid financial foundation to build upon, ensuring their peace of mind and security.
  • Tax Efficiency: By setting up the Child Savings Scheme, they maximised tax efficiency and reduced the tax burden on their children in the future.
  • Disciplined Saving: The Monthly Savings Scheme instilled discipline in their savings habits, helping them achieve their goals consistently.