CASE STUDY – Ready to Start Retiring at 67, Jack was Concerned for his Wife

CASE STUDY – Ready to start retiring at 67 Jack was concerned for his wife

Ready to start retiring at 67 Jack was concerned for his wife

WHERE he was at – Jack had been quite successful in the past in several business endeavours which had allowed he and his wife to purchase a substantial home while under 30 and provide top schooling for their children. A couple of misfortunes had rocked the boat over the years but the value of their main home had grown substantially and Jack had been able to protect themselves from going under financially during several business downturns he had seen over the decades.

What he WANTED to have – In his late 60’s he had been through what now seems such questionable habits of youth that he had fortunately sorted out years before, but had taken their toll on his health – such as smoking and years of drinking that had strained the marriage tremendously. He expected that his health would definitely mean his wife would far outlive him, and that he may only have a few years to go. He loved his wife and wanted to ensure she would be looked after once he was gone.

What it will COST Being on a large property, Jack wanted to ensure the rates and cost of maintaining the house would be covered. It would also get to a point where the garden would become too much and he wanted there to be enough to pay a gardener to assist with the lawns and heavy work so the children did not have to feel burdened either. And there was also the day-to-day living expenses. And it would be nice if she could still enjoy their favourite Asian restaurant and a movie once a month as they currently did. He calculated that $60-75,000 per annum would be needed.

What he would NEEDIf a conservative return of 5% was used, he would need at least 20 times the comfortable income aimed for. That would be $1,500,000, to achieve the upper income, $75,000. Half of that, $750,000 would give them $37,500 per year. If they could pool there super so it was easier to manage, that would simplify things for his wife. They would be near the lower amount. But the $1.5 mill was his goal.

What to do NOW Jack and his advisor met with us after our introductory seminar about Self-Managed Super and told us his concerns. We laid out what he had calculated and his advisor also mentioned options such as to sell part of the land which could help achieve higher amount to have invested and get the higher income. They wanted a firm who could understand the strategy and had expertise to provide the structure that could pool the retirement money and further contributions – a Self-Managed Super Fund (SMSF) but importantly continue with support for them both and later the wife alone, that Jack felt comfortable with. So far Jack was feeling it was achievable. He could work for 3-5 more years to continue contributing to the SMSF and build it up as much as possible. He liked also that they could meet with us as many times as they liked to discuss options and build the relationship (at no cost!) and that made him pleased. We had 2 more meetings, he brought his wife and they knew they trusted us to look after things with his wife once he was gone. But that would be a sad day…

Now the components were in place –

StrategyWas to pool super and contribute as much as he could, investing for conservative growth

StructureCombine super in an SMSF for simplicity which had the tax advantaged-environment

Support They understood they would be trustees of an SMSF and how we would support their compliance responsibilities. They especially liked that we don’t charge for set-up (which is not tax-deductable) but only an annual administration fee which was 100% deductable to the SMSF. He knew he could breath easier.

He had his strategy set out, a structure (SMSF) and he had us for the support – Strategy-Structure-Support.

Interested to know what self-managed super (SMSF) is all about, how to get setup FREE and if it is for you? We have FREE seminars and bonuses every month Self Managed Super Fund Roadmap (all you need to know) for the next monthly event, see 1 SMSF – FREE Seminars or call us 0407 361 596


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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