Case Study – Business Man in Late 30’s with Young Family

Business man in late 30’s with young family interested in Self Managed Super Fund

Business man in late 30’s with young family interested in Self Managed Super Fund

Our client John is a business man in his late 30’s who had relatives with Self-Managed Super funds (SMSF) and saw how this gave them control to decide how and where their super money was invested. He wanted to understand how they worked and what was involved. He had two young children under 6 and another on the way, and a new business growing at 20-30% per year. He also wanted to help his mother who had been through many tough years, and needed to grow her super which was only a few tens of thousands.

We explained how SMSF worked and what the responsibilities involved where you become both a member and a trustee.

  • You are running a trust.
  • That a well written trust deed was very important so that the greatest flexibility was offered for investment choice and planning.
  • How you are responsible for the running and compliance tasks – admin, set of accounts and reports, annual return and audit, all required every year.

He liked that we handle all that for him, so he has time to focus only on investment education and running his business. He also had the power to be fully in cash at any time he chose, if he couldn’t cope with any market uncertainty. He could sleep at night.

Access to workshops as a source of education as well as others who provide reputable courses. In addition, a unique service where with access to a private client broker, low brokerage, and a financial planner to answer all his questions at any time, all included in the fees would be ideal! Even better, no charge for set up fees, just annual administration fees that are 100% tax deductible for the fund, would be ideal, after I explained that trust deed and set up costs are not tax deductible. The good news was: That was the service we DID provide already – unique and un-matched as far as we have found.

He also wanted to have some wealth planning, including asset and income protection. With a young family and a business that still relied heavily on him to grow and run, he did not want his wife left to sell the home if something should happen to him. Both income protection as well as life and total and permanent disability cover were essential. Our financial planner could assess and explain the best strategy, and it was decided that life and TPD could be paid by the SMSF, and the income cover by himself so that he received a direct benefit (than if held by the SMSF where the benefit is paid to the SMSF and not accessible until he is of retirement age, so no benefit to them if tragedy struck).

He decided to start an SMSF with 3 trustees and members – himself, wife and mother, get the life and TPD paid by the fund, and take the income protection direct debited from their joint personal account. He found he now slept better knowing that the major financial areas were structured to their best advantage, and he had done a good deed to help his mother as well!


About SuperBenefitnews

Self-Managed Superannuation Service Providers in Australia. SuperBenefit provides a wholistic SMSF assistance, education and administration service continuum - 1. “assistance” is help of whatsoever nature where our overall SMSF experience and knowledge enables us to provide assistance/help without any legal (or “license”) limitations. 2. “education” involves providing knowledge through teaching, coaching and mentoring about all matters SMSF, including (but not limited to) investment issues such as equities and property, 3. “administration” encompasses all admin aspects of legally required SMSF trustee and member record keeping including (but not limited to) audit and ATO matters. In keeping with our key point that SuperBenefit does not provide Financial Advice, where issues arise from 1, 2, and/or 3 above Indicate a need for a legally authorized provider (such as a Financial Adviser) and the client does not have their own service provider, the client can utilize SuperBenefit’s ‘Connect Assist’ … SuperBenefit, in itself, does not provide Financial Advice, but it does provide the wherewithal for great SMSF service. WE do not provide Financial Advice or any other service that requires a legally authorized provider. However, where such advice or service is required we have our ‘Connect Assist’, a SuperBenefit resource we use to connect clients to a Licensed Advisor or other legally authorised service provider. Call us 0407 361 596, no obligation FREE Connection call to see how we can help you!
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