CASE STUDY – John & Lyn – To use SMSF to take control and work towards property in super

CASE STUDY – John & Lyn – To use SMSF to take control and work towards property in super

To use SMSF to take control and work towards property in super

John & Lyn were interested in Self-Managed Super funds (SMSF) so they can take control of their retirement savings and build them up to work towards getting property in super. They already had a couple of investment properties, and the changes to super since 2007 now allowed more investment possibilities, such as borrowing for property.

There are 5 easy steps to planning anything – start where you are at, decide what lifestyle you want to have, what that lifestyle state/position will cost in money (to maintain or living costs) what you need invested to meet that cost of having what you want, and what action we need to take now to get there. (See the 5 Easy Steps to Plan your Retirement).

WHERE they were at – John was a tradie with a good company doing well. Lyn had just had their second baby and planned to go back to part-time work in 12 months if possible. They had about $75,000 when they pooled all their several super funds together, and were paying off their own home. There were also 2 investment properties.

WANT to have – They wanted to be self-sufficient and comfortable as much as possible and not rely on the Government Pension, which is becoming a concern around the world for all Governments and citizens, due to ageing populations.

COST of that lifestyle John & Lyn estimated in today’s values, an annual income to retire would be at least $40-50,000 in today’s money. That would be close to the ASFA definition of “Comfortable” and allow meals out and occasional trips overseas.

NEED invested to return the costTo be safe, if a conservative investment return of 5% is used, (one 20th of 100%) this means at least 20 times the income goal – that rounded to approx. $800-1,000,000 of income-producing assets other than the family home.

NOW what to do After meeting the advisor who explained the Pros and Cons of SMSF, they met with Paul the Administration Manager at SuperBenefit who supplied FAQ sheets, a Checklist of what was required, a list of what would be included in the service. Once the Trust Deed was prepared and executed, and bank account formed and applications to their superfunds signed they could organise for John’s employer to start paying his super to his new SMSF.

John & Lyn liked that the SuperBenefit Programme had a CONNECT/ASSIST service which could help with who to talk to for advice and other help besides the financial advisor, such as investment property experts, and our private-client share broker who supplied a list twice a year after the Australian company reporting seasons, summarising financial data on companies with strong financial health that are likely to perform well.

There is also peace of mind because any queries or compliance issues, could simply be directed to the SuperBenefit administrator, who would CONNECT them to the right advisors as required (Connect/Assist Service).

They now had the components in place:

Strategy – To take control of the retirement plan, and build super;

Structure Use an SMSF using SuperBenefit administration service where ALL is taken care of;

Support With resources and all compliance taken care of by SuperBenefit, as well as a team of specialist professionals that the SMSF Connect/Assist service provides, working with the client advisors in unison.

NoteThis 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 will SET UP your SMSF and provide investment education for a better result. We take care of all your administration, accounting, ATO lodgement and audit of SMSFs, working with you and your advisors. If you want advice we can arrange one of our recommended advisors and accountants to meet with you, as we do not give advice, but take instruction only. Take control of your super, including property shares and other assets. Learn how to be your own advisor - make better decisions - by being mentored and coached to invest your own super wisely and strategically by qualified partners. Book to come to an event to find out more, or - Call us 0407 361 596, no obligation FREE strategy call.
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