CASE STUDY – Carmen & Bob – Build to property investment through super

CASE STUDY – Carmen & Bob – Build to property investment through super

Carmen & Bob – Build to property investment through super

Carmen and Bob wanted to invest in property, and with a trusted advisor they explored the idea of property investment through Super.

(There are 5 easy steps to planning anything – start where you are at, decide what lifestyle you want to have, what that lifestyle state or position will cost in money (to maintain 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. Here is how it works with one of our clients. )

(Get the FREE Resource: 5 Easy Steps to Plan your Retirement).

  1. WHERE they were at – Carmen and Bob had a new relationship going well for several years, after sad breakups. Carmen was an instant new mum but adjusting to the new role, and was busy planning her business in the health sector, while Bob had just changed jobs to a better company and position. They had sought advice, some initial research, and a couple of other questions which their advisor answered, such as risks, pros and cons.
  2. WANT to have – The aim was to retire comfortable, maybe even self-funded as much as possible.
  3. COST of that lifestyle Estimated in today’s values, the annual income to retire that she desired would be at least $75,000. That would be well over the ASFA definition of “Comfortable”, where “comfortable” enables “…an older, healthy retiree to be involved in a broad range of leisure and recreational activities and to have a good standard of living through the purchase of such things as – household goods, private health insurance, a reasonable car, good clothes, a range of electronic equipment, and domestic and occasionally international holiday travel”.
  4. NEED how much you need invested to cover the income requiredto 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 rounds to approx. $1,500,000 of income-producing assets other than the family home. They already had approx. $150,000 in 6 super funds. There was a way to go yet! Leveraging by borrowing via an SMSF was an option, hoping to help boost their super over regular 5-12% returns the average commercial superfund achieves. A few years ago, before lending changes brought restrictions, second tier lenders were lending with lower balances – but most won’t allow this now in 2018 onwards – so it pays to get an SMSF specialist and experienced broker to assess your situation first! Another option was proportional property investment with new options becoming available, or even property and share trusts.
  5. NOW what to do after meeting their 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, 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 organising the investments.

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, has a CONNECT-ASSIST service which provides co-ordination as well as help – with who to talk to for advice and any other help besides the financial advisor.

There was other value in our property investment specialists and private-client share broker, who can supply 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).

The advisors had put these components in place –

Strategy to take control of the retirement plan, and build their super

Structure use an SMSF and the SuperBenefit Programme administration

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 – it is not to be taken as advice, as your specific circumstances are not considered – we recommend asking for a consultation and/or seeking further professional advice with our recommended advisors or your own advisor.

Get the FREE Resource: 5 Easy Steps to Plan your Retirement) 

If you have any questions, why not give us a call – it’s FREE! No obligation. 0407 361 596, Paul

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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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