WHERE they were at – Just starting retirement slowly by working part-time, Ian & Jillian wanted to have more control of their super investments as well as planning-help as they needed it. Ian wanted to follow the share market closely and learn how to invest for a good return. Jillian was happy to keep busy working part-time. But the complexities of understanding eligibility and applying for Centrelink benefits seemed daunting. They wanted to know who to turn to, and receive trusted recommendations
What they WANTED to have – They had paid their house off and had no car loans any more. The home was in good maintenance, but some small projects always waited, and some money would be required. The cars were maintained and were not too old, so no pressing need to upgrade yet, but maybe in 5-6 years. They wanted to have 1-2 trips to the sunny north states if possible per year, and be able to dine out once a week or fortnight, but not too expensive.
What it would COST – Knowing their weekly and monthly expenses, their retirement that they wanted was modest, and they calculated that $50,000 would be comfortable for the living standard they required.
What they would NEED – To be safe, if a conservative investment return of 5% is used, (one 20th of 100%) this means one requires at least 20 times the income/return goal – that rounded to approx. $1,000,000 in assets that can generate a return. Having $300,000 in super combined they were short of being totally self-funding in full retirement.
What to do NOW – Ian & Jillian spoke to their advisor. They found there were options and a Government Pension was possible, so there was no need to panic about low super. Ian liked the opportunity that he would be able to watch, learn and make decisions about what companies their super was invested in. He liked that the SuperBenefit Programme recommended broker supplied a list twice a year of companies with strong financial health that are likely to perform well.
We were instructed by the planner to 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%.
They also had peace because any queries or compliance issues, could simply be directed to the administrator, who would CONNECT them to the right advisors as required (SMSF Connector Service)
They now had the components in place –
Strategy – to take control of the retirement plan, and
Structure – an SMSF using SuperBenefit administration, alongside part-time work and later Government pension
Support – with resources and all compliance taken care of by SuperBenefit, as well as a team of specialist professionals that the SMSF Connector service provides
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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