Financial Planning Assessment

We’ll continue to max Kathy’s SG Super of 27.5K annually. Concessional contributions Net Bonus is about 25K, so we’ll SS the difference based on the ATO max cap limit.

Net Bonus is around 19K. We’ll fully allocate to Stocks until we purchase Property2.

For Property1, we’ll be using the drawdown schedule as of JAN25, mortgage interest free. PPM is 355K and Offset is 134K. Repayments are 41.8K annually. Target to fully pay off the mortgage by 2036. MI% of 6.79%, saving us 33K in mortgage interest annually. Ongoing Property Fees are about 8.8K. Offset with Salary Contr of 6K and Monthly Contr of 3K. Net Cash Flow of 33K will be allocated to KD/KMA and KFI-BInvT in Offset. Currently PPOR, but may be subject to change to investment property when we purchase Property2.

For Property2, KD/KMA and KFI-BInvT will be allocated to CBA Savings for Property2 Down Payment. KD/KMA total is 61.7K and KFI-BInvT total is 62.5K (pre-TKD costs). Total is 124K by JUN25.

For Net Savings, 81K in contributions (excl Super). NS Alloc+Property1 NCF=81K+33K=+114K. NS Alloc+Property1 NCF+KD/KMA+KFI-BInvT=81K+33K+61.7K+62.5K=238K by DEC25. JUN26 will be HY for NS, so +40K+16.5K=+56.5K. Target total 238K+56.5K=294.5K by JUN26. Excludes Savings%, so total will be higher and we will readjust by JUN26.

Property2 estimated purchase price at 865K. Down Payment at 25% of 216K. Stamp Duty estimated at 34K totals to 250K. Target 5% to Offset of about 43K. Adjusted target set to 250K+43K=293K.

I’ve told Kathy that she has the option of switching employers by JUN25 if she wanted to as we’ll have 150K+ in cash savings, and we’ll have about 290K+ in cash savings by JUN26. Told her that it’s more than sufficient for her to take the time to switch jobs and to settle in instead of risking potential redundancy. Once we make the property purchase, we’ll be at the mercy of her employer for at least the first 3-to-5 years until we rebuild up the equity and lower the interest payables.