Brian and Stephanie had lovely children in Primary school and a busy consulting business they had started from scratch, which was growing well. They loved property and had explored how super could be used to invest in property and wanted to know if that could work for them.
(There are 5 easy steps to planning anything – start where you are at, decide what lifestyle you want to have, what that lifestyle state/position will cost in money (to maintain or the living costs), what you need invested to meet that cost of having what you want, and what action we need to take now to get there. (Get the FREE Resource: 5 Easy Steps to Plan your Retirement).
- WHERE she was at – Running her own business, Nicole had supported herself and family offering healthy food methods and loved helping people acquire healthy products. She had used our advisor for decades, to assist with many financial decisions and appreciated his advice and sounding-board ear but wanted to be sure about more control of her future.
- WANT to have – The aim was to retire self-funded as much as possible.
- COST of that lifestyle – Estimated in today’s values, the annual income to retire that she desired would be at least $70-90,000. That would be well over the ASFA definition of “Comfortable” and allow dinning out and even occasional trips overseas.
- NEED – how much you need invested to cover the income required – To be safe, if a conservative investment return of 5% is used, (one 20th of 100%) this means at least 20 times the income goal – which rounds to approx. $1,600,000 – 1,800,000 of income-producing assets other than the family home. They already had approx. $250,000 in 2 super funds. The value of the business was considered to a bonus and would hopefully be sold as a going concern. Leveraging by borrowing via an SMSF was an option to help boost their super over regular 5-12% returns the average commercial superfund achieves.
- NOW what to do – After meeting their advisor and Gaetano Fina, a Property Advisor and Real Estate Agent (one of our core property experts we can recommend), who explained the Pros and Cons of SMSF, then met with Paul the Administration Manager at SuperBenefit who supplied FAQ sheets, a Checklist of what was required, and a detailed list of what would be included in the service. Once the Trust Deed was prepared and executed, bank account formed and applications to superfunds signed, it was a simple matter to start organising the investments.
What was liked best of all – that the SuperBenefit Programme made it easy – SuperBenefit manages compliance from the annual documents, storage of records electronically and additionally, has a CONNECT-ASSIST service which provides co-ordination as well as help – with who to talk to for advice and any other help besides the financial advisor.
There was other value in our property investment specialists and private-client share broker, who can supply a list twice a year (after the Australian company reporting seasons) summarising financial data on companies with strong financial health that are likely to perform well.
Shares would be the main investment.
There is also peace of mind because any queries or compliance issues, could simply be given to the SuperBenefit administrator, who would CONNECT them to the right advisors as required (Connect/Assist Service).
The advisors had put these components in place –
Strategy – to take control of the retirement plan, and build their super
Structure – use an SMSF and the SuperBenefit Programme administration
Support – with resources and all compliance taken care of by SuperBenefit, as well as a team of specialist professionals that the SMSF Connect/Assist service provides, working with the client advisors in unison.
Note – This is a simplified summary of one client – it is not to be taken as advice, as your specific circumstances are not considered – we recommend asking for a consultation and/or seeking further professional advice with our recommended advisors or your own advisor.
Got questions? If you want experts who have years of helping others, without the hype – then call for a FREE strategy session today and also get your FREE Expert Guide – Self-Managed Super and You – top right hand side above.
If you have any questions, why not give us a call – it’s FREE! No obligation.
0407 361 596, Paul
SB Programme educates and coaches you in connection with all the key SMSF admin issues. Where “advice” becomes necessary, we can refer you to a financial advisor. Or alternatively if you have your own financial advisor, please talk with them.
This is a simplified overview and does not constitute advice, nor consider your circumstances, and should not be solely relied upon.