Wealth accumulation – a case study

6th February 2017

Wealth accumulation - a case study

Paula is a 35 year old Medical Consultant ,  She has worked between Dublin and Kerry for the last five years and owns houses in both places.  She currently lives in her Dublin house and rents out the property in Kerry.  She has been a firm believer in the continuing rise in the value of both properties and has intended using them as what she calls her ‘retirement plan’.  Paula is self-employed and her income for the last tax year was around €100,000.  She has spent most of that money and apart from around €10,000 in her current account has no other savings. She has always managed her own money and thought that she did it very well until a conversation with some friends recently left her thinking that the only reason she thinks this is because she currently has enough money to do what she wants to do.

Client Objectives
Paula now feels that it is time to put a bit of structure round what she does with her money.  Her income should increase steadily over the next 10 years or so and she wants to feel that she’s not going to ‘fritter it all away’. She would like to keep both properties but is not sure that her mortgages are arranged as efficiently as possible and she is concerned that she has no planning in place to help fund her retirement, although as yet she has not decided when she would like to give up work. Paula is also keen to make sure that she has made provision to replace her income and pay off her debts if she becomes ill.

We started by asking Paula to accurately note how much she spends, and on what, over a four week period.  This is not to stop Paula spending money, rather it is to allow her to understand where her money goes so that she can begin to think about how much she needs to spend every month and how much she can save for the things she wants to do in the future.

Key Results
Financial plan now in place to help long-term objectives. Target retirement age agreed for 55 and retirement planning commenced. Money saved following mortgage restructure. Annual review agreed with Premier Financial.

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