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 retireCASE 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

They came to our introductory seminar Self Managed Super Fund Roadmap (click for latest) to ensure they were updated on the latest with Self-Managed Super Funds (SMSF). They currently owned an SMSF that had been set up from years ago. They had run their own businesses including service and consulting. They had worked hard and always studied to learn how to run their business better and more efficiently, and alongside this, saved as they could for their retirement. Now in retirement, they had a great house with view of the bay in a quieter beach town but close to city freeway access. Impressed with our presentation, they completed the feedback form and indicated interest in coming to the next workshop Navigate your way to Successful Share Investing (click to find latest in list) to learn more. They were taught about the basics of Financial Statements – what is the Profit & Loss, Balance Sheet and Cashflow Statement, how they are constructed and how to read them. They enjoyed looking at the Telstra last Financial Statements and reading them with greater understanding. Then we taught about ratios and how they are used to analyse the financial information of companies. Analysis is used by share investors to understand the figures in more depth and enable us to compare companies to each other and see which is performing better compared to the other.

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.


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!
This entry was posted in 2 Past Newsletter Topics, Case Studies of Clients, SMSF Investing, SMSF Property, Superannuation General. Bookmark the permalink.

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