Phase 4 - Post kids, heading towards retirement but not there yet!

19 years after the start of raising a family in Phase 3, my two kids: Amy and Ketut are now
completely independent. I will start this Phase at 52 years old. In this phase I will be going into
semi retirement and will have to now start preparing for retirement life.

How has life changed and what obligations will you have?
For over 25 years I have been working for BMF and the executive chairman, Matthew Melhuish
(BMF, 2014) is about to go into retirement. I have been promoted to take his role not only
because Ive had a long experience with BMF but because I am also hardworking, I constantly
work extra hours, Im positive and I always ask for more responsibility (B.Tracy, 2012). Even
though I have recently achieved this position I have decided to become semi-retired. My two
children Ketut and Amy are now both fully Independent which means I will not be providing them
with any financial support. I have paid half of my mortgage on the house. With no children to
raise, my attention and money is now being focused in paying off the mortgage, saving money
and buying apartments around sydney which will support me in my retirement years. Investment
in equities could also support me and so get dividends and profit. Rhonda is still an
advertisement actress and is being paid by a number of companies. We have recently bought a
puppy Shih Tzu (breed of dog) and have named it Chew Barka.

What is your income potential?
With being promoted my income has moved from A$106 553 after tax to A$362,900
(M.Bamberger, 2012). Tax on this income of A362,900 is A$54 547 plus 45c for each A$1 over
A$180 000 (Australian Taxation Office, 2013). After tax my income will be A$226 048. Rhonda
will be earning the same amount of money as when I first met her of A$92 063 after tax.
Together our combined income will be A$318 111.

What expenses will you incur?
Fixed expenses A$ Monthly
Mortgage - on two homes 1656.25 + 3546.30 =
5202.55
Dog expenses - food, toys, grooming, veterinary checks, etc 290 (J. Stregowski, 2014)
car expenses - service, fuel etc (beside insurance) 430
necessities - cleaning products and equipment, toiletries, nappies
and food
400
bills - gas, electricity, phone, internet etc 400
Total 6722.55

Variable Expenses A$ Monthly
Clothes 200
social and recreational e.g movies, dinning out 1000
total 1200

Where will you live and what will it cost?
Me and my partner Rhonda, will still be living at 5/87 Birkley Road Manly (Domain, 2014). The
house has 3 beds, one bathroom and 1 car parking space and is close to manly shops. One of
these rooms we will convert into an arts and gaming room and the other spare room well leave
as a guest room. The cost of converting a room into a stylish arts and games room will atleast
be A$6000. This is including the price of a quality pool table (All Table Sports, 2012).

What additional financial obligations will you have and why?
Additional Expenses(A$) Paid in one go, or throughout the year
Transport fees 500
Impulse buying 5000
sport accessories - surfboards, skateboards, fitness equipment etc 5000
furniture accessories 1200
Holidays 2500
renovation 6000
total 20 200

I will be buying an apartment at 4/1277 Pittwater Road Narrabeen with the help of a loan from
the bank and so I will become a debtor and the bank will be the creditor. The loan will be A$495
000 with 6% interest. I will be paying A$3 546.30 a month over a period of 20 years. This
apartment I will rent out and later use to support me in my retirement. My friend Ryan Martin has
agreed to be my guarantor for this loan making it a secured loan not a unsecured loan.

Budget (A$) yearly
Previous savings 1 550 151
expenses 115 220.6
Income 318 111
amount being saved 202 890.4
Total money saved in 13 years (not
including previous money saved)
4 187 726.2


What could go wrong and who can help?

Cant pay mortgage- If I can't pay off my mortgage, for help, I can visit MoneySmart, a
government website that can provide me with:
Charities and emergency help
help with debts
help with legal issues
help with housing
government assistance and concessions
free financial counsellors
fair trading contacts
(ASIC, 2014)
Lose Job - If I lose my job, I cant get back on my feet and if I run the risk of being homeless,
the australian organisation Red Cross among many others will help me (red cross, 2014).