Alex is a keen property investor with many years’ experience and had also researched Self-Managed Super funds (SMSF) as a way to take control of his retirement savings and how to purchase property in super. He already had several investment properties and he knew the changes to super since 2007 now allowed more investment possibilities, such as borrowing for property and diversifying into shares and other assets .
(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. (Get the Free Resource: 5 Easy Steps to Plan your Retirement).
WHERE they were at – Alex was a professional who managed his own investments and wealth himself. He had about $85,000 when he pooled all his super funds together, and was paying off their own home, having a young family still with them. There were also several investment properties.
WANT to have – Alex 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 – Estimated in today’s values, an annual income to retire that he desired would be at least $75-90,000 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 cost – To be safe, if a conservative investment return of 5% is used, (one 20th of 100%) this means at least 20 times the income goal – which rounded to approx. $1.5 – 1,800,000 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, he met with Paul the Administration Manager at SuperBenefit who supplied FAQ sheets, a Checklist of what was required, diagrams how Borrowing worked with SMSF, and a detailed list of what would be included in the service. Once the Trust Deed was prepared and executed, bank account formed and applications to their superfunds signed Alex could organise for his employer to start paying his super to his new SMSF. (This was a challenge as they were behind in their obligations).
Alex liked best of all that the SuperBenefit Programme handled all the set up and documents, storage of records electronically and additionally, had a CONNECT/ASSIST service which provides co-ordination as well as 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 given 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.
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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0407 361 596, Paul.