Michael and Kirsty were referred to us by a friend. They were concerned that their superannuation funds were not being maximised, and that they were paying excessive management and financial advice fees. They heard a lot about self-managed super funds and wanted to find out whether it would be a viable option for them.
They had 4 retail super funds with a combined value of $1,303,101.
The problems they had before we got involved
- Michael and Kirsty had no control over their super investments and had no understanding or say on how and where their funds were being invested
- Their funds were charging tens of thousands of dollars in ongoing management and financial advice fees which were significantly diminishing their super investment returns and value
- Due to their busy lifestyle, they didn’t have the time or expertise to manage their own super investments
- Their existing super funds provided limited estate planning options, which meant that if they passed away, their funds could not be distributed the way they wanted to their intended beneficiaries which was very concerning to them
How Tax Effective helped Michael and Kirsty
- We completed a detailed analysis to understand what they wanted their super to achieve, how their funds were invested and how much they were paying in ongoing fees
- We established a self-managed super fund with a corporate trustee where we transferred all their funds
- Our in-house wealth managers customised an investment strategy and asset allocation which considerably reduced the tax liabilities of their fund and increased its ability to grow faster
- We structured their fund to enable flexible distribution options that can be paid tax-free to their nominated beneficiaries
- We streamlined all aspects of their SMSF administration, providing them with a highly cost effective, fully automated system that takes care of all their compliance and reporting obligations, with zero hassle
By establishing a self-managed super fund with Tax Effective:
- Michael and Kirsty saved in excess of $15,210 in ongoing fees in the first year of establishing their self-managed super fund
- They will save minimum of $79,049 over the next 5 years and $180,462 over the next 10 years in ongoing fees
- Their fee savings will benefit from dollar cost averaging and compound growth over the medium to long term, providing them with significantly more capital over and above their fee savings
Post becoming clients
We meet with Michael and Kirsty every quarter to measure the progress of their self-managed super portfolio, and keep them up to date with super changes that may impact them, as well as tax and investment planning opportunities that can fast track the growth of their fund.
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