Case Studies

Over the past 7 years, PDB has helped hundreds of Australians on the path to achieve financial security and prosperity. Below are just some of our clients and their personal experience as a client of the Phillips Dean Brickwood group:

1. Richard and Lisa

Richard and Lisa are married with two children.  They are currently owe $200,000 on their home and have an investment property.  Additionally, they have a tight cash flow and 5 superannuation funds between the two of them.  They are ages in their mid and late 30's and have a combined income of $130,000 per year.Firstly we recommended a restructure of their debt and banking systems.  They felt that they were not utilising their available incomes sufficiently and that they were actually going backwards.  Reworking their debt allowed us to lower their overall cost of debt as well as increase their tax efficiency.  This resulted in an initial $4,000 per year saving with these savings increasing over time.  We have set up a structure whereby they will be able to pay off their non tax deductible debt in only 4 1/2 years.  We then helped Richard and Lisa to increase their investment portfolio to include commercial property, international and Australian shares, with the expectation of purchasing another investment property in the next 12 months.  This will see their investment assets surpass $1 million in the next 12 months.  The beauty of their new investment portfolio is that it costs them no more after tax than their current single investment property.  Next we built a risk protection model for them to ensure the continuity of their income should either of them fall ill, be exposed to a serious trauma, or pass away.  It's important to protect what they have built but it is also important to do this in a cost effective manner.  Their wills were also reviewed ensuring that a significantly lower tax rate would be applied to their estate should either or both of them pass away. Finally, we rolled together their superannuation into one fund and set up a Self Managed Super Fund (SMSF).  We acted as the administrator for them in this process ensuring very little administrative burden for them.  We had their SMSF increase it's internal asset base by borrowing an additional 100% of the funds value (to give them a 50:50 borrowing level) and invested the funds in a manner that will give them both long term tax returns, but will also eliminate both the 15% earnings tax as well as the 15% contributions tax for potentially the rest of their lives.

All this took approximately 3 weeks to structure and a further 2 weeks to implement.


2. Eddie

Eddie came on board with PDB 5 years ago when he was in his 20's.  He was married and earning $95,000 a year and had some savings.  We worked comprehensively with him to build up his savings and he purchased his first investment property in Sydney after 6 months.  We then introduced him to protected gearing and he borrowed 100% of a share investment that was also capital guaranteed.  This later paid out a return of $85,000 with no input from Eddie.  With his savings, we used a regular share gearing plan and built up his investment on a month by month basis.  With the profits he purchased another investment property which only cost him $2,000 per year after tax.  PDB assisted with the purchase and structuring of the investment.  As his savings continued, so did his profits.  We increased the borrowings on his share investment to use more of the equity to invest.  In the past 5 years, he has purchased 2 investment properties and now has a share portfolio worth $260,000.  His invesmtents are not a drain on his cash flow and he has just purchased a house to live in.  With the purchase of a primary place of residence, we utilised his current assets and designed a loan structure that is unique to PDB that will have Eddie paying off his non tax deductible debt in about 3 1/2 years while still growing his investment assets.

His next step is to buy another investment property in approximately 8 months time.

* The case studies outlines above may not be suitable to you as it contains general advice that has not been tailored to your personal circumstances. Please seek personal financial advice prior to acting on this information. Client names have been changed to ensure privacy. Past performance is not a reliable guide to future performance as future perfomance may differ from and be more or less volatile than past investment outcomes.