CASE STUDY – Chen & Anna – Want more control and someone to help run the administration and compliance

CASE STUDY – Chen & Anna – Want more control and someone to help run the administration and compliance

Chen & Anna – Want more control and someone to help run the administration and compliance

WHERE they were atChen & Anna asked the planner and I what could they do to plan as best they could for retirement – how could they have more control and someone to help run the tedious administration and compliance which they knew they couldn’t do. Their daughter’s had good jobs now and were more settled and Chen wanted to retire by 65 as he was slowing down. On a visit to the doctors, a specialist was advised for Chen after blood tests looked suspicious. Later it was found he had rare leukaemia and diagnosis only suggested a few years to live with this kind. The savvy planner investigated his insurances in one of his commercial super funds and found he had a possible claim. They were keen to start a Self-Managed Super fund after all the responsibilities were explained carefully, and potential benefits the broker and his strong company analysis could bring gave comfort.

What they WANTED to haveThey wanted to have more control over their retirement outcome aim to be self-funded. If they needed money for treatments, it could be available if Chen converted his super to pension. They also wanted to be self-funded as far as possible. If they could go back to Europe and see family soon, that would be a bonus, and Anna would like to go part-time and then retire later in 3-4 years.

What it would COST Talking with the advisor, they estimated an annual income required would be $50,000 in today’s money.

What they would NEEDTo 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. $1,000,000 in assets.

What to do NOW Their current super was under $60,000 where the insurance claim was started, 9with a potential pay-out of $160,000) and 3 other funds had combined $80,000, and their daughter had $40,000 and $20,000, to also join in the SMSF. This was short of what was planned, so Chen and Anna would continue to work and save as much as they could in super for the tax advantages when they were in pension phase.

Chen and Anna 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. The planner assisted in many doctor and specialist visits and they made application to claim on the insurance for the terminal illness. 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 SuperBenefit the administrator, who would CONNECT them to the right advisors as required (SMSF Connector Service)

They now had the components in place –

Strategyto 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

Chen was able to successfully make a claim and was awarded the $160,000, after many months. His health deteriorated sooner, however, he stopped work earlier, and Anna assisted his care at home, She was then diagnosed with breast cancer and undertook treatment via chemo-therapy. Chen cried as she lost her beautiful hair, and she had to take a few months off work. Then Chen took a turn for the worse, and passed away peacefully. Anna came through successfully and has returned to work part-time.

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!
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