CASE STUDY – Roger – Opportunity to invest in a local company with his super

CASE STUDY – Roger – Opportunity to invest in a local company with his super

Opportunity to invest in a local company with his super

Roger was working in financial areas and a major bank in the past, now running his own business, and knew there was an opportunity to invest in a local company with his super, using a self-managed super fund (SMSF)

There are 5 main steps to planning anything – start where you are at, what you want to have, what that state/position will cost in money (to maintain or living costs), what you need to meet that cost of having what you want and what action we need to take to get there.

WHERE he was at – Roger was in his 30s and had no partner or children yet. He was busy building up his business.

What he WANTED to have – He wanted to take control of his super and invest in interesting areas that had potential for better returns, but also to know what his super was invested in. Additionally, he wanted to be able to return each year overseas to visit family annually instead of infrequently as current.

What it would COST Although he found it hard to consider what he needed in retirement as it seemed so far away, by meeting several tax, banking and financial advisors, they encouraged him to aim to increase his business income to have more borrowing capacity, and put more into super for the tax advantages, then estimated an annual income to retire  would be $30-40,000 in today’s money. That would be modest and allow an occasional trip overseas if family were still there in years to come.

What he would NEEDTo be safe, if a conservative investment return of 5% is used, (one 20th of 100%) this meant he required at least 20 times the income goal – that rounded to approx. $600-800,000 of income-producing assets other than family home.

What to do NOW His current super was growing with small business contributions with current balance about $60,000. Roger would aim to contribute half again above his usual contribution of $5,000 per year. He thought of other avenues for income and would prepare fliers to explain the offer and benefits to new client groups and affiliates. He understood the drawbacks of a low balance SMSF but the advisor saw he had good investment experience and knowledge, and had potential to achieve good returns as well as negotiate a lower fee with SuperBenefit in proportion to the accounts and compliance work (that would be low also). Knowing of a business in his building looking to grow, Roger wanted to supply debenture finance loan to support it, and the return would be better than bank interest and some super fund returns. He would also look at listed companies and other opportunities.

Roger liked that the SuperBenefit Programme had a CONNECTOR/ASSIST service which could help him know who to talk to for other help besides the advisor, such as a share broker who supplied a list twice a year after the Australian company reporting seasons, supplying 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.

Roger 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/Assist 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, working with the client advisors in unison.

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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