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Blake's Life Plan
After nearly ten years moving up the ranks in retail jobs, Blake has just taken his most significant job opportunity and promotion ever, earning an increase of nearly $18,000 pa plus commissions. He shares a rental flat with two mates and recently bought a new Mazda3 MaxxSport. With a rising income and low expenses except for his $20,000 car loan, Blake wants a financial plan that will make him save but give his lifestyle breathing space. He also wants to protect his income should an unexpected snowboarding accident put him out of action.
Blake was wise to meet with a financial adviser to see how he could optimise his sudden income windfall. Not only did he discover a variety of Investment options to dovetail with his interest in starting off in the share market, he also found some advantages by consolidating his different Super plans from his previous employers. Blake saw the advantage of adding property purchase to his ‘must do’ list within the next few years while reducing his non-deductible debt (like his car loan or rent). Blake learned that he could use debt positively (with an investment loan) to give him a potential tax deduction which may add to his overall investment return. He is also considering a Managed Funds investment to help save for a home deposit. Blake is now also at a stage where he may wish to consider Income Protection Insurance given his steady rise in income.
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