A redundancy is a big thing. When we experience redundancy we move through a range of emotional responses including fear, anger, insecurity and dented pride. But at the end of the day the biggest question is “what now?”
Advice for your situation.
At Bennett Wealth we offer financial and life planning advice to people dealing with redundancy.
The Advisors at BWG have years of experience in developing action plans for clients that have been made redundant. Some of the help we provide includes;
- Clarifying where you are at in life, your career and your financial journey,
- Building a short term stabilisation plan for family finances,
- Dealing with company super, employee share plans and insurance arrangements that may change,
- After considering your goals and objectives we advise on the best options for using payouts,
- We advise on options for minimising tax on payouts,
- Reconsidering what type of career or role is ideal going forward,
- or our favorite question, “Have I got enough to retire?”
We also incorporate many our regular services such as, getting better loan rates, making super work harder, optimising cashflow management, optimising investment strategies and retirement planning.
Our advisors spend time talking with families to ensure they have an appropriate financial strategy in place.
A time for reflection.
Being made redundant can be difficult, but it can also be a liberating period. Even if it results in earning a lower income, it’s possible for people that are in a supportive environment where they enjoy what they do to have a healthy and wealthy life.
Redundancy can give people the opportunity to completely stop and reassess how they want to utilise their valuable time to generate the income they need.
During the planning process we’ve experienced clients gaining the confidence to re-train or move into a different field or even start a business.
But not everyone can have this luxury.
We help our clients to manage the financial impact of a redundancy by minimising their tax and ensuring they use their money in the best possible way.
How we help: a case study.
Redundancies can be a common result of organisational restructuring. We were able to help an employee that experienced this at her work when she approached us for advice.
She received a significant payout, comprised of a number of components with varying tax treatments and options for managing it. All in all, it was very confusing for her.
We assessed her situation and ongoing income requirements, and incorporated her long-term dream of a 6 month sabbatical. Then we put together a plan. Here is a brief version of what we covered:
- How much to allocate to her home loan.
- What to invest and where.
- How to fund the 6 month sabbatical.
- Restructuring of her super and insurances given they were no longer employer-sponsored.
- Work shopped a consultancy start-up option.
- Saved over $25k tax on the payout.
Within 3 months she regained full-time employment, so unfortunately the consultancy start-up is on hold. But, unlike before, it’s now a very real option for her in the future.
Going through a redundancy was an emotional roller coaster ride for me with a host of uncertainties around super and tax implications. As well as ensuring I was using the redundancy payout to benefit me in the best way long-term.
Bennett Wealth did all the research and presented me with my options and their pros and cons.
What I appreciated most was the quick and clear responses to my questions, the personal attention and getting a clear recommendation of what options were best suited to my personal circumstances. But also, for understanding that I wanted to have spending money left over to reward myself.
I would highly recommend Bennett Wealth to anyone going through a similar experience.
We can help you make the right insurance choice and find the ideal solution for you and your family.
When advising on redundancies many of our normal services come into play. For more information click on the links below:
- Is it fair to rely on your accountant alone?
- The BWG Way
- Employee-share-plans – are-you-prepared
- Quality investments in troubled times
If we can help you or a friend or colleague, then contact us today.