## CASE STUDY – Couple Had an SMSF but Wanted to Learn Share Investing and Spread Their Assets

CASE STUDY – Couple Had an SMSF but Wanted to Learn Share Investing and Spread Their Assets SMSF Super

The husband was fairly versed in shares, having invested in shares and attending course himself over the years. In their SMSF, were 6 companies currently. His wife had not had the time to learn about shares over the years, and tended to mention to the husband recommendations by commentators and analyst firms. But he wanted her to understand more – and our Navigate workshop was the perfect place. Without difficult maths or high-level definitions, we show how simple it is to understand the financial statements. We also have attendees actually find some of the basic figures in the statements of Telstra, divide certain ones into other ones (a ratio) and compare the result with generally accepted norms. Actually calculating ratios yourself is unique to our workshop. The key thing is how simple a ratio is – divide one number into another. For example, the Return on Equity ratio (also explained HERE). Take the Return (Profit) for the period, divide it by the Equity in the Balance Sheet. Was it a good result? What would we generally be looking for? Do we compare to others in the industry? Both were delighted with what they learnt. But the tediousness of calculating all those figures!! Yes analysis can be obtained by other data sources and broking firms, etc.

Can SuperBenefit help them? Yes – clients get all the ratios in a simple to read comparison chart where ratios are given as well as colour-coded for easier comparison of the top companies. The aim is to get as much green as possible over Financial Heath (a Lincoln Indicator Rating) as well as 12 KEYT ratios and figures. The husband saw this as a great opportunity for him and especially his wife, to expand their knowledge and continue their education in shares. He decided to put a portion of their SMSF with us and our broker. We set up a separate bank account and trading account. In discussion with the broker, a selection of companies was made and investment began.

After reviewing the portfolio 6 months later, the couple decided to double their money with us and expanded their holdings recently. The wife wants to invest in property for diversification, so while they are building the capital in stocks, they are investigating where/when they will put some of their super into property. We cover property in our Roadmap seminar – it is to be taken with caution – there are important key steps that must be adhered to, to avoid non-compliance or fines. And affordability is key too – our associate broker can help them know quickly if they are likely to be able to borrow (leverage) to purchase the asset, or whether it will be better to buy outright. These are the exciting next steps for the couple to take soon!

What is YOUR story? Want to be more informed? Come to our next seminar – SMSF Roadmap, and/or our workshop to learn about share investing – Navigate to Successful Share Investing.

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. Tell us or comment bellow, we’d love to hear your views.