WHERE they were at – Murray and Susan were in their late 30s, with a young family ,when they spoke to their advisor, and as a time-poor businessman, they wanted the chance for better returns on their retirement savings. The business he continued to build with his father had expanded interstate which meant trips back and forth, and time was even tighter. Options included renting out the family home in Melbourne, and themselves renting interstate until things were more settled interstate, which was discussed with the planner.
What they WANTED to have – They wanted to have more control over their retirement outcome and to be totally self-funded. They planned to have a large home in retirement to be able to have their children and families stay with them if required. Time and money to travel overseas would be good, as it was not possible at the moment with the growing businesses.
What it would COST – Talking with the advisor, they estimated an annual income required would be $80,000 in today’s money.
What they would NEED – To be safe, if a conservative investment return of 5% is used, (one 20th of 100%) this meant they required at least 20 times the income goal – that rounded to approx. $1,600,000 in assets.
What to do NOW – Their current super was under $200,000, so there was work to do – in looking for good capital growth and making extra contributions in the low-tax super environment. The possibility of property would be looked at in time, since SuperBenefit could set up the structures needed, if directed. Murray and Susan also liked that the SuperBenefit Programme recommended broker supplied a list twice a year after reporting season, of financial data on 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 clients have made returns ranging from 3-18% in certain years.
They also had peace because any queries or compliance issues, could simply be directed to the SuperBenefit 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 build super;
- 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 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.
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 You – Top right hand side above.
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