CASE STUDY – Having finally sold the business, James and Mary were ready to finalise retirement preparation


CASE STUDY – Having finally sold the business, James and Mary were ready to finalise retirement preparation

Having finally sold the business, James and Mary were ready to finalise retirement preparation

WHERE he was at – James had worked hard at his business. There had been good and bad and very tight times over 50 years. He’d seen several economic down turns and watched business clients come and go, sometimes for lack of preparation and sometimes for unforeseen circumstances. Now after a couple of false interests, there was finally a serious buyer and James could work towards the hand-over. The sale looked to be over $1 million, and James would stay on for 6 months as agreed, transferring the office to join and merge with the new buyer’s existing office a few suburbs away. They owned their home on a few acres 50 min from the office in rural outskirts. His strategy over the years had been focused on the business and not so much on building super, which was under $100,000 for the 2 of them. The business owned the current premises and they also had to decide what would be best for that next.

What they WANTED to have – To complete the handover and begin considering the fate of the office which was an old home near a business and retail suburban hub. He now understood there were advantages that super offered both in reduced tax but also tax-free pension, and wanted their existing super all consolidated into a self-managed super fund (SMSF). He needed to meet his accountant and get the best of Small Business sale concessions. They also needed to work out how much their children needed help and how much they needed themselves. He wanted to be fully retired in 3 years, as a health scare indicated time could be shorter than he hoped.

What it will COST Their property was easy to maintain at present, and he and his wife looked forward to spending more time in the garden. They had had many overseas trips – maybe another would be nice, but not a priority. He calculated that $60-70,000 per annum would be comfortable.

What they would NEEDIf a conservative return of 5% is used, (one 20th) meant they would need at least 20 times the comfortable income aimed for – from $1,200,000 to $1,500,000, to achieve the upper income, $70,000. Half of that, $650,000 would give them $32,500 per year. Even that was plenty if times got tight, or they needed to help their children or grandchildren and were only left with half. The outcome of the old office depended on whether they develop it or sell as it was – and maybe that could be a kind of retirement project?

What to do NOW James had been aware of us through his accountant. He had kept up to date with the basics of SMSF, but appreciated us going over the fundamentals. He and his wife wanted to simplify arrangements by pooling into SMSF. They also liked that the administration was all taken care of to cover the responsibilities they would take on as trustees, But they also liked that they had access to our other services such as ongoing investment education and access to advice and support – that gave comfort compared to cheaper online services that didn’t offer any “extras”.

Now the components were in place –

Strategywas to pool super and contribute as much as they could from the sale and investing for a balance of income and growth to achieve $60-70,000 PA

Structurecombine super and top-up as much as possible while they could, in an SMSF for control and the tax advantages

Support they appreciated how we would support their compliance responsibilities. They also had access to the education and advice when needed, from brokers and planners, or they could choose their own.

Now he could finish the business hand-over and work on the office property “project”!

Interested to know what self-managed super (SMSF) is all about, how to get setup FREE and if it is for you? Come to a FREE seminar with 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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