CASE STUDY – With his share of the sale of a business nearly due, Garry and Ingrid wanted control using a Self-Managed Super fund (SMSF) and to start living their retirement

CASE STUDY – With his share of the sale of a business nearly due, Garry and Ingrid wanted control using a Self-Managed Super fund (SMSF) and to start living their retirement

With his share of the sale of a business nearly due, Garry and Ingrid wanted control using a SMSF and to start living their retirement

WHERE they were atBoth Garry and Ingrid had worked hard – Ingrid some part-time work over the years, and Garry the last few years in partnership in financial services. Garry was ready to settle down now, because he and his business partner had finally secured a buyer for their company after an earlier sale fell through the previous year. Gary and Ingrid were ready to spend  more time with their granddaughter, and help their only daughter and son-in-law out. They had sold an investment property but wanted to know how to invest without the hassle of a tenant. Our advisor, Jim Brownlee, went through a fact-find to understand their financial situation better. Since they were keen to have a better return, and wanted to learn more about investing, Jim explained how self-managed super worked and what was involved. He emphasised the compliance responsibilities, but that most would be managed for them by the SuperBenefit service, so they didn’t need to worry.

What they WANTED to haveBoth Garry and Ingrid wanted to be fully secure with a steady income. Their assets meant they would not qualify for Centrelink Pensions, and that was OK, they preferred to be self-funded. They didn’t plan on any big trips, just a possible local holiday occasionally. Their own house was paid off, so not a problem.

What it will COST – The planner estimated in today’s dollars they needed $55-60,000 per annum to live on. They lived comfortably currently but not extravagantly and they allowed for a nice dinner out each week of $50-60 max. This also would allow them to have an annual holiday, requiring about $3-5,000 for a local trip and maybe $10,000 for one overseas trip. They would continue to run the 2 cars, estimated at annual running costs of $4-5,000 each per year, as they expected running around with grandchildren in time would keep them busy!

What they would NEED – Having worked in another financial services area, Garry already knew of the tax advantages within super, as well as the tax-free income stream/SMSF pension of the fund once they were in pension phase. Jim ran some figures and explained to the couple – if a conservative return of 5% is used, (one 20th of 100%) this meant it converted to needing at least 20 times the comfortable income aimed-for – from $1,100,000 to $1,200,000. Once the sale of the business was complete,  they could contribute the maximum Non-Concessional contributions each as members of their SMSF before the work test applied and they could reach that amount.

What to do NOW – I came and met Garry and Ingrid and explained the administration and compliance requirements relating to SMSF. I explained how SMSF was set up and what we would do – obtain the Trust Deed, AND, TFN and bank account set up ready for them to sign as owners and members. They also liked that we would support them with any questions, and that other investment ideas could be discussed with their auditor – but they knew that was unlikely! They just wanted a simple but reasonable return. Another part of the service they liked was to be able to talk direct with the Share Broker that we had many clients using, although they were not bound in any way to only use him. They would have their insurance reviewed by a specialist insurance planner, and most of all, liked that SuperBenefit provided monthly workshops so they could continue to learn, as well as seek any answers they needed such as other investment issues, and that 10 hours of mentoring and education was included at a time that suited them!

They now had the components in place –

Strategyto take control and their pool super, and contribute extra, and learn more when they had time

Structure to set up an SMSF together

Support with resources and all compliance taken care of by SuperBenefit, and other professionals, they could learn more about investment in property & shares as time allowed later. They now felt in control and it felt very manageable to them. They could see a well-planned future and had a team to support them.

Note – This is a simplified summary of one client – we recommend asking for a FREE consultation and/or seeking further professional advice with our or your advisor.

Interested to know what self-managed super (SMSF) is all about, 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, see1 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!
This entry was posted in Case Studies of Clients, Retirement Planning, Superannuation General and tagged , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s