A medical professional client based in Melbourne was nearing retirement and approached us after learning we were able to offer financial planning services. He was the classic asset rich, cash poor client. He had the typical business structure for medical professionals, with a trading entity kept separate for asset protection purposes to his investment entities, in particular he has a Self Managed Super Fund. His asset position was his Self Managed Super Fund owned a rental property, he had cash in the bank as well as some Australian shares, he had no bank debts that required action either.


We sat down with the client along with his wife to discuss their aims and objectives and what they really wanted once he stopped his medical business. This process can be a lengthily process as sometimes this is the first time clients think about what they want in retirement. Luckily we have been working with the client for over 10 years so we had a great rapport as well as a familiarity with his financial affairs to manage an open discussion on where they wanted to go. We often work with a whiteboard with our clients to get down in writing their goals, and how important they are to them. If they are important then we can work out a strategy to get the client to the goal.


After establishing our clients aims and objectives as well as documenting their financial position both personally and within their business and investment entities, the next step is to work out an appropriate risk profile. A risk profile simply put is a persons attitude to investment risk. We find clients risk profiles can vary from different client to client, so getting this right is very important. The last thing you want to do is recommend a highly volatile investment to a client who does not like risk.


With our medical professional client with his input we workout that his risk profile was Balanced. A Balanced portfolio is usually made up of a normal asset classes with the potential for moderate capital volatility in shorter term. This means we now could put together an investment strategy to match his risk profile as well as improve his personal financial position so his plans and goals post retirement are achieved.


The strategy for him was to sell the investment property owned by the SMSF and with the cash proceeds along with the cash in the bank invest in Australian and International securities as well as fixed income investments. This strategy increased the level of returns he was previously receiving by an additional 6%, which means a very happy client. His income goals will now be planned to be met which means our client can retire knowing his financial position is looked after.


If you are in a similar position where you are asset rich, cash poor and are thinking of retirement, please contact us to discuss.

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