WHERE she was at – Coming from public service, then self-employment with her husband, Antonia was working on her passion with a community cause, in a voluntary capacity, as well as building a new business and awareness of available facilities and support. She had several super funds and wanted to simplify them, try to learn to invest for knowledge and seek better returns. Her voluntary work would not be forever, so she could focus on her passion as both a community service and her own business – educating government and the public.
What she WANTED to have – Having no children, and finding it was easier to be friends rather than live with her husband because they wanted to live different lives, Antonia sought a comfortable living, and to pay off the last amount on her mortgage as soon as possible before retiring at her goal in her late 50’s.
What it will COST – Since there was no immediate family or children, she roughly calculated that $45,000 would be comfortable for the living standard she required.
What she would NEED – To be safe, if a conservative investment return of 5% is used, (one 20th of 100%) this meant requiring at least 20 times the income goal – that rounded to approx. $900,000 in assets. Knowing her own current home is not an income-producing asset, she did keep in mind that down-sizing may be an option later – she should get a good price in a popular suburb which would be a fallback position to keep in mind. Her super totalled $200,000, and she had a half-share in another property worth $650,000, so we had $525k. She needed to revise her goals – could she make up the shortfall with the business, or would down-sizing the home be the main way after-all?
She decided building her business would provide the cash-flow to pay down the last of the $120,000 mortgage, living leaner for a few years. Then to be able to sell it – $200k would be nice – now we had $725k – maybe the last $375k would have to come from selling the current home after-all, and buying a nice smaller one-bedroom unit near the coast. This all seemed achievable.
What to do NOW – She missed our seminar on SMSF, so we had a meeting for a personal plan of advice to be drawn up, as well as a explain the administration and compliance requirements relating to SMSF, including how SMSF was set up, 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, then applications to her super funds. Her former husband would be co-trustee, but she would be the only member.
We now had the components in place –
Strategy – To take control of the retirement plan, build a business and pay-down mortgage
Structure – An SMSF using SuperBenefit administration
Support – With resources and all compliance taken care of by SuperBenefit, as well as a team of specialist professionals to call on.
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.
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