Making sure you can leave a legacy

for your children

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Laura, 63 years | Ricardo, 64 years

 

Meet Laura + Ricardo

Laura and Ricardo have worked hard to build up their retirement savings. As they approach retirement, they’re looking forward to spending more time with their family as well as taking some well-deserved overseas holidays.

Laura is 63 and Ricardo is 64 years old. They are both working full-time and they own their home. They have $1.5m in a self managed super fund invested as follows:

  • Investment property - $900k
  • Shares - $500k
  • Term deposits - $100k
  • The challenge
    The challenge

    We're happy as long as our super doesn't go down.

    Family is extremely important to Laura and Ricardo. While they are keen to enjoy retirement, they also want to make sure their family will be looked after when they pass away. They don’t want their investment to go backwards.

 

The strategy

Protect their super with sharemarket protection

As they are approaching retirement, Laura and Ricardo’s financial adviser recommends they invest 50% of their sharemarket portfolio into Allianz Retire+ Future Safe. Because they have other assets they can access in case of emergency, so they are happy to invest for 7 years.

Future Safe provides Laura and Ricardo with the ability to maintain exposure to the sharemarket with the peace of mind of knowing their range of returns upfront.

5 key steps

Laura + Ricardo work with their adviser through 5 key steps to:

Step 1: Understand their retirement goals
Laura and Ricardo’s core retirement objective is to make sure their super doesn’t go backwards.

Step 2: Decide their worst-case scenario and choose their protection option
Laura and Ricardo decide they don't want to experience any market losses so they choose the protection option with a 0% Floor. They then go onto the Allianz Retire+ website to see what the relevant Cap (the maximum amount she can gain if the sharemarket rises) is for Year 1. They also know that an annual product fee of 0.85% (inclusive of GST, if any) applies.

Step 3: Choose an investment option and amount
Laura and Ricardo decide to invest in both the domestic equity and global equity index-linked options.

Step 4: Access their money as a regular income stream or lump sum
Laura and Ricardo will benefit from any positive returns in the sharemarket (up to their Cap). At the end of each year, their investment return is credited to their account. They can choose to withdraw this or leave it in their account.

Step 5: Check in each year to review their strategy
Laura and Riccardo talk to their adviser each year to make sure the 0% Floor option, the associated Cap and their investment choices still meet their needs and fit with their broader investment portfolio objectives.

 

For a detailed view of Laura + Ricardo's investment journey, please download the full version

 

 

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