CASE STUDY – Putting inheritance into SMSF – Maria, a middle-aged business woman

CASE STUDY – Putting inheritance into SMSF – Maria, a middle-aged business woman

Putting inheritance into SMSF

WHERE she is at – Maria had helped run a family hobby farm for years. Having sold it, the question was what to do with her portion of money. She continued in business now, not farming but buying-in the basic raw product they used to grow and concentrating on new products that had a demand she was beginning to successfully tap into.

What she WANTED to have – Maria wanted to be able to live without Government support, by having enough to be self-funded in retirement. She enjoyed her new venture, so there was no rush to stop work yet – there was demand so why miss it? She wanted to be able to support her mother as there was a good chance her mother would live well into senior years, but also to be able to enjoy some time together after all the hard work. She aimed to pay off her house and would then consider travel, but it was not a priority yet.

What it will COST – She had a meeting with one of our planners to sort out the issues and get clarity. She was not too risk-adverse, and having come to our Self-Managed Super Fund (SMSF) seminar at the council, she attended our follow-up seminar about share investing and was very pleased with the method the broker used to sort out healthy companies. Maria already lived modestly but comfortably and demands of the business had curtailed any substantial holidays for now. She lived on $30,000 a year, as she didn’t travel and didn’t live extravagantly.  She just ran her car, mostly local trips, which had running costs of $4-5,000 each per year. If she looked after her mum more, extra money would help – so up to $40,000 would be comfortable for one person.

What she would NEEDTo self-fund, the planner ran some figures – using a conservative return of 5%, (one 20th of 100%) this meant converting to needing at least 20 times the comfortable income aimed-for – the min would be $800,000. This seemed very achievable as she had been fortunate with the business sale, and her current business was going well, but she would need to save some profits to sell it for a total of $400,000 at least altogether. She was also on track to pay off her home in 10 years. Maria would also set a goal to sell the business – but she wasn’t ready to put a date/year yet!

What to do NOW – Having attended our seminar on SMSF which explained the administration and compliance requirements relating to SMSF, I refreshed her about how SMSF was set up, her compliance responsibilities and what we would do – obtain the Trust Deed, AND, TFN and have a bank account papers set up ready for her to sign. She had a friend who would be co-trustee, but she would be the only member. She had been very pleased so-far with the support for her many questions, and that other investment ideas could be pursued in the future such as property. While she was flat-out with her current business, she just wanted to be able to know she had a team helping look after the super side and over-all plan for retirement.

Maris now had the components in place –

Strategy – To take control of her super, and contribute extra, in time and learn more later when she could

Structure To set up an SMSF as well as other aspects the advisor recommended,

Support With resources and all compliance taken care of by SuperBenefit, and other professionals in our network, she could learn more about investment in property & shares later on. Maria was very happy.

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

Got questions? 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 GuideSelf-Managed Super and Youtop right hand side above.

If you have any questions, why not give us a call – it’s FREE also! No obligation.

0407 361 596, Paul.



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, Retirement Planning, Superannuation General and tagged , , . Bookmark the permalink.

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