CASE STUDY – Chris & Heather liked how SMSF gave the chance for control of investing their OWN super

CASE STUDY – Chris & Heather liked how SMSF gave the chance for control of investment their OWN super

Chris & Heather liked how SMSF gave the chance for control of investment their OWN super

WHERE they were at – Both Chris & Heather liked how SMSF gave them the chance for control of investing their OWN super. Having had short but successful careers in Government and hospitality, and then spent a decade in their own business, they had been through several accountants and some incorrect advice, that had set them back years ago. Not only having had bad tax advice and having to pay a huge tax bill one year over several months, as well as working for themselves as sole traders before becoming a company years ago, this meant putting aside super for sole traders, was not possible due to legislation, back then. Now with children grown up and marrying and themselves aged into late 40’s, the big house was nice but wasn’t needed any more.

They did the sums and researched rental returns in their suburb and surrounds. They found it would work to rent out the large 5 bedroom home of $470k to a family, rather than the costs to sell and re-purchase. They would then move to a smaller home. Refinancing was too tight at the moment due to recent broken work patterns for personal reasons, so they would rent cheaply and re-sort work and finances for 12-18 months and re-finance then.

The $80k super they had in super, could work better with the basic knowledge and research of investment (and particularly shares) that Chris had gained over the years, and both Chris and Heather were keen to manage their super and invest it themselves.

What they WANTED to have and the living COST – They knew they needed to catch up if they would have any sort of retirement, and calculated that $40,000 would be comfortable for the living standard they required. Travel would be nice but was not a priority, as being with family and helping with community and charity work was their passion.

What they would NEED to achieve the COST to liveTo 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. $800,000 in assets. They should be able to get another 3 bedroom home by re-financing in 12 months but that would not produce income. Their super totaled $80,000, and they would have an investment property worth $470,000, so together they had $550k in income producing assets, and required a further $250K to build up to $800,000 in minimum assets. There was 15-20 years until retirement to get this together – in asset growth, share returns and saving in super – that is $16k pa over 15yrs and $13k pa over 20yrs. They had an achievable plan in place.

What to do NOW  – After advice and review by the financial planner and their own accountant, as well as the research and seminars they had attended over 18 months – including SuperBenefit’s SMSF, share  and property events, they were feeling more confident about the chance of achieving a good return in their own SMSF. They prepared the family home to rent and found a nice extended family who were keen to move out of their small rental into a more suitable  sized family home! Chris & Heather’s family helped them move to a small rental for 1-2 years.

We followed instructions and set up the SMSF and applied to the super funds to roll-over to the new SMSF bank account. Then they spoke to the stock broker about the list he had created for SuperBenefit clients, of healthy Aust companies based on the 12 financial health criteria. Since 2010 they have made returns ranging from 8-18%. Conservative estimates showed they were on-track to reach their goal in 16 years – and they were very happy the future was planned and had begun!

They now had the components in place –

Strategyto 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.

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 Guide – Self-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 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