George and Susan knew our financial advisor via referral from one of the advisor’s clients.
George had experience with personal direct share investment in his spare time after his busy professional position that included interstate travel for a multi-corporate. Sue was busy in the education field.
Their future was their concern, particularly after the GFC – and they wanted to use SMSF to control and manage their super by using George’s direct investment expertise. This was part of their Retirement plan.
(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 the 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 – George was a professional who managed his own investments and wealth himself. Together they had about $300,000 when they pooled all his super funds together, and had nearly paid off their own home, with just 2 older children still at home. There were also several investments in shares.
WANT to have – For George and Sue being self-sufficient and comfortable in retirement and having to not rely on the Government Pension, was the plan.
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).
George 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. He also saw value in 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. He thought this would work alongside his own analysis and choices.
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)
The advisor now had the components in place –
Strategy – to take control of the retirement plan, and build super,
Structure – use an SMSF along with the SuperBenefit, administration service
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.
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.
If you have any questions, why not give us a call – it’s FREE also! No obligation.
0407 361 596, Paul