Case Study: What to do with employee shares

In this case study episode, Stuart delves into the financial journey of a client he began working with in 2012. Back then, the client had $800k in net investment assets, including shares primarily in Rio Tinto, superannuation, and a property in Hawthorn East. Today, that figure has grown to almost $2.8 million.

Despite challenges, such as underperforming investment properties and a shift to consulting work post-2017, strategic decisions have led to significant growth. A key move was gradually selling down Rio shares, especially after their value peaked at over $130, and redirecting the proceeds into superannuation.

Listeners will gain valuable insights into the importance of not having your wealth tied to the same industry as your income and the critical role of superannuation performance. The episode highlights the balance between holding and selling investment properties and underscores a gradual strategy to increase the proportion of wealth in superannuation.

This case study exemplifies how careful planning and strategic asset management can lead to substantial financial growth, even when faced with market fluctuations and changes in employment. Tune in to learn more about achieving financial stability and growth through diversified investments and proactive superannuation contributions.

Read Stuart's latest book? He's only got 19 reviews on Amazon so far, if Wealth by Design helped you, leaving one would mean a lot: https://www.amazon.com.au/review/create-review?asin=192318654X

Run your own business? 

Check out Business by Design, Stuart and Mena's show on starting, growing and exiting a business, at https://www.businessbydesignpodcast.com/

Our most popular free guides:

Over the years we've written hundreds of articles. These three bring our best thinking together on the topics that matter most right now: choosing a super fund, debt recycling, and navigating the new tax changes.

Download them here

Got a question for the podcast?

Email us at [email protected]

Subscribe to my weekly blog:

Stay connected here

Important

This podcast provides general information about finance, tax and credit. It doesn't take into account your specific objectives, financial situation or needs, so you need to assess whether it's relevant to your circumstances before acting on it. If you're not sure, speak to a licensed, trustworthy professional.