Lifestyle

Strategy ID	Section	Strategy	Description
48	Lifestyle	Return to work date	Optimisation engine figures out when you need to return from paternity leave to meet your ongoing expenses. Optimiser will consider employee entitlements and government parental pay in determining how much cashflow is available. A maximum time of work is assumed based of employee entitlements.
49	Lifestyle	Downsize principal residence	Downsizing can occur due to a number of reasons:
			Capital is required to fund lifestyle and/or goals
			It is preferable to reduce non-deductible debt
			Better opportunities in other asset classes
			Smaller house has a higher chance for growth potential. Note, PrimeSolve allows an advice group to set different default growth rates for different styles of property.
50	Lifestyle	Hire a nanny	Optimiser will consider whether it is cheaper to use a nanny or child care. Key drivers will depend on whether the nanny service has access to the child care rebate, and how many children require care. The more children a client/s has the more likely it is that the net cost of a nanny is cheaper.
51	Lifestyle	Increase retirement age	This occurs when a client/s capital is projected to run out prior to the expected life expectancy + any buffer set in the advice assumptions.
52	Lifestyle	Move back into principal residence	Occurs if a client is currently living away from principal residence. A key consideration is the 6 year rule and maintaining CGT exempt status. For this recommendation to occur it must also be set as a strategy the client would consider (see reason for seeking advice).
53	Lifestyle	Place child in child care	Optimiser will consider whether it is cheaper to use a nanny or child care. Key drivers will depend on whether the nanny service has access to the child care rebate, and how many children require care. The more children a client/s has the more likely it is that the net cost of a nanny is cheaper.
54	Lifestyle	Purchase a principal residence	This recommendation will generally occur under one of the following conditions:
			If a client/s has set this as an goal
			Projection indicates that buying is expected to create more wealth than renting over the long term
			Principal residence increase social security entitlements.
55	Lifestyle	Reduce working hours	If an goal is to work less, the optimisation model will determine the minimum amount of work hours required to sustain cashflow.
56	Lifestyle	Purchase holiday home	This recommendation will only occur if it is set as an goal.
57	Lifestyle	Rent out holiday home	This recommendation will occur if the client/s indicated they are willing to consider renting their home out.
58	Lifestyle	Rent out principal residence	This recommendation can occur under the following conditions:
			Client/s is moving interstate or overseas
			Current house does not meet current family requirements but is likely to do so at some point again in the future (e.g. kids are likely to move out). Client must indicate that they require a bigger house in the goals.
			Renting is cheaper.
59	Lifestyle	Rent a property	This recommendation can occur under the following conditions:
			Client/s do not have an goal to own their own home and it is optimal to invest money elsewhere. This will depending on growth assumptions of various asset classes and the cost of borrowing.
			Client/s have competing goals such as building an investment portfolio.
			Living arrangements are likely to change within the forseeable future (e.g. kids moving out), moving interstate etc.
60	Lifestyle	Rent and buy later	This recommendation can occur under the following conditions:
			Additional funds will be available at a later date, either through savings or inheritance
			LMI insurance can be avoided in the future.
61	Lifestyle	Sell PR & rent	This recommendation can occur under the following conditions:
			Client/s do not have an goal to own their own home and are happy to rent.
			Renting is projected to build more wealth in the long term.
62	Lifestyle	Upgrade PR	This recommendation can occur under the following conditions:
			*If set as a client goal
			If a larger PR increase social security entitlement
63	Lifestyle	Remain in principal residence and take a home equity release	Can occurs if a client has an goal to remain in principal residence, and the only alternative to fund lifestyle requirements is a home equity release option.
64	Lifestyle	Remain in principal residence and take out a reverse mortgage	Can occurs if a client has an goal to remain in principal residence, and the only alternative to fund lifestyle requirements is a reverse mortgage option.
65	Lifestyle	Take paid parental leave (employee leave)	Recommendation occurs if a client has a goal to spend time at home post the birth of a child.
66	Lifestyle	Home renovation	This recommendation will only occur if it is set as an goal.

Investment portfolio

Super strategies

Feedback

Post your comment on this topic.

Feedback

Was this helpful?