Paul and Paula had her elderly mother living with them so they could provide the best care they could. He also had his consultancy, and Paula worked part-time around her mother. They knew they needed to plan quickly for retirement to build up the small super they had – and liked the idea of property in their super
(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).
1. WHERE they were at – Paul enjoyed his consulting work. They wanted to down size and move closer to a sea-change area as well as continue caring for Paula’s elderly mum, and had their eye on a particular development near the coast. They both planned to keep working well into their 60’s unless something changed that. And with property rising steadily, they wanted to work on reducing the loan but still wanted to move house and focus on retirement wealth-creation.
2. WANT to have – The aim was to retire self-funded as much as possible.
3. COST of that lifestyle – Estimated in today’s values, the annual income to retire that she desired would be at least $60-70,000. That would be well over the ASFA definition of “Comfortable” and allow dinning out and even occasional trips overseas.
4. 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. $1,200,000 – 1,400,000 of income-producing assets other than the family home. They already had approx. $200,000 in 2 super funds. The value of the consultancy 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.
5. NOW what to do – After meeting their advisor and a Property Advisor and Real Estate Agent 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.
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