How MoneyLink’s wealth advice through a global financial crisis allowed this couple to have the kind of retirement most people only dream of.

small investment

From little things...

Twenty-eight years ago, Ian Bamforth contacted Russell Tym about investing a small sum of money. It was around $3,000, and Ian wanted to make sure the money was working for him and not just sitting around doing nothing.

It was a phone conversation where Russell provided information on some prospective investments that would suit Ian, and they went from there

The phone conversation and the quality of the advice he’d received meant a great deal to Ian. It stayed with him.

long-term investment plan

Big things grow

So when his father died, and they had a much larger sum of money to invest, they sat down with Russell, and looked at short- and long-term goals, and how they could make that $200k grow.

“We worked on a plan…it was important to Jill and I that we would both be financially independent of the government. I had a fairly basic knowledge about unit trusts and investments, and we were conscious of the fact that we needed to make the investments grow and keep a diverse portfolio open. Russell suggested a mix of investments – we had a look at some of those and decided from there.’

Their initial investment of $3000 was well rewarded in the early years, so investing the larger inheritance was a no-brainer. Retirement was at least ten years off at that point, so they had time on their side.

success financial plan

Success equals confidence

We were quite confident the plan would work out well. Some investments weren’t our choice, but Russell opened us up to both medium and high risk investments.

“When we started out we were reasonably conservative as we were new investors. As we got comfortable and our knowledge grew, we got to a point where we were prepared to look at high risk investments while maintaining some conservative. So we had a balance of investments that could generate growth for us, but were still stable and would help us ride out the inevitable highs and lows.”

investment plan

Riding out the storm without panic

“We’ve always had a fairly long term outlook on investments – we’re prepared to ride out the highs and lows and haven’t made panic decisions when the market was crashing.

“The investments Russell made for us were such good investments that when the market rose again, our investments rose immediately, and within twelve months of the crash we were slightly better off than we were before.”

investment plan

A winning position

After coming out from the 2008/09 crash stronger, the Bamforth’s say they know many people who are still trying to recover.

“Our spread across shares, super and property hit us less hard than others. Our Australian shares performed better than the international shares, and lessened the impact.”

Russell thought they were quite unique, as their vision was long term, not short term and definitely not panicky.

Ian and Jill credit Russell with the comfort they have in retirement today.

“If we hadn’t found Russell, we would have been in a much less secure position. We would have had to make many decisions for ourselves, and possibly not made some of the right ones.”

Ian and Russell assess and analyse on a regular basis.

Diversity is the key

Diversity is the key

The Bamforth’s have their superannuation funds, direct shares, and bank shares.

Their portfolio is diverse, with a number of smaller investments within each class (shares, property, cash).

And they’ve always tried to keep the ratio of shares/property at a comfortable point.

pension plan

On the road to retirement

MoneyLink recently transitioned the Bamforth’s portfolio to a pension plan, which has been set up to provide an income to the couple for the next 40 years.

“Because of the investment size, we’re only just pulling a percentage out (to satisfy the government). The bulk of the investment is still performing.

“We receive the minimum amount for it to be classed as a pension, which is 4%. The fund is making 6%, so we’re receiving growth of 2% or more, dependant on how the performance is at the time.

“Another important aspect is taxation… and the implications on your retirement lifestyle. If you make the wrong decision regarding tax, you can be up for a hefty tax bill. Russell and the team at Moneylink always talk about ways to minimise the impact of tax.

“If ever I’ve got any questions, I’m always able to call… Russell is very obliging there’s never been any time I haven’t been able to call and sort things out over the phone.”

A retirement most people only dream of.

Ian and Jill, both in their late 50s, are in good health, and ready to travel around Australia with friends. Thanks to the experience and expertise of MoneyLink, they’re able to enjoy the kind of retirement most people only dream of.