Brian and his wife had investment property experience, but wanted to invest their super in property, when they had enough.
(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).
1. WHERE they were at – Brian and his wife were busy with their careers. They had no children, but on the side, ran property development and renovation on a small scale in their spare time. They had been concerned years ago about what they would need to be able to retire “comfortably” – and after Brian did the engineering assessment on an insurance claim for one of our network advisors, he had a meeting with the advisor to discuss their plans for the future, and what the possibilities were.
2. WANT to have – The aim was to be self-sufficient and comfortable in retirement, hopefully without Government support.
3. COST of that lifestyle – Estimated in today’s values, the annual income to retire that he desired would be at least $80,000 in today’s money. That would be well over the ASFA definition of “Comfortable” and allow meals out and occasional trips overseas.
4. NEED – how much you need invested to cover the income required – 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. $1,600,000 of income-producing assets other than the family home.
5. NOW what to do – After meeting the advisor who explained the Pros and Cons of SMSF, he then met with Paul the Administration Manager at SuperBenefit who supplied FAQ sheets, a Checklist of what was required, 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 superfunds signed, it was a simple matter to start paying super to the new SMSF.
What was liked best of all – that the SuperBenefit Programme made it easy – SuperBenefit manages compliance from the annual 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 the tax agent or auditor.
There was visible 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.
It would be the main investment for the build-up to some property later.
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 had put the components in place –
Strategy – to take control of the retirement plan, and build super,
Structure – use an SMSF and 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 together with the client advisors.
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.