Client Overview
Denise had been employed as a Senior Manager, earning $450,000 annually until receiving a redundancy package of $925,000 in the 2023 financial year. She transitioned to working in the family business alongside Jordan, with a gross wage of $120,000 per year.
Jordan, a small business owner, was in the growth stage of his enterprise, with an annual turnover of $1.2 million.
The couple owned their home and two investment properties valued at $600,000 each with small mortgages, and had surplus cash across personal and business accounts.
Client Goals
- Grow retirement funds aligned with their risk tolerance;
- Facilitate the purchase of a commercial property for Jordan’s business; and
- Invest surplus cash to enhance overall wealth.
Key Recommendations + Actions Taken
1. SMSF Establishment + Property Investment
- We recommended rolling over superannuation to a Self-Managed Superannuation Fund (SMSF), enabling the purchase of property within superannuation; and
- We assisted in opening a bank account for the SMSF and establishing an Investment Strategy, considering asset allocation.
2. Tax-Effective Contributions
- We advised on making personal deductible contributions, non-concessional contributions, and catch-up contributions to superannuation, reducing tax liabilities and boosting retirement savings.
3. Optimised Insurance Cover
- We reviewed and adjusted existing insurance inside superannuation to align with their needs, reducing premiums while managing adequate coverage.
4. Diversified Investments
- We recommended investing in Managed Funds to access diverse asset classes through a cost-effective vehicle, enhancing investment flexibility; and
- We facilitated an in-specie transfer of direct shares to the SMSF for concessionally taxed growth.
5. Debt Management + Cashflow Optimisation
- We advised Denise to repay the margin loan, freeing up cash flow for other purposes; and
- We established cash accounts and directed surplus cash into a direct share portfolio within a trust structure, promoting wealth creation.
6. Company Investments
- We recommended establishing cash accounts and investing in Managed Funds for the company, fostering wealth growth for surplus cash.
Outcomes + Benefits
- Reduced tax liabilities and boosted retirement savings through strategic contributions.
- Streamlined insurance coverage, ensuring adequacy while minimising premiums.
- Enhanced investment flexibility and growth potential through diversified asset allocation.
- Optimised cash flow by repaying debt and directing surplus cash towards wealth-building investments.
In the end…
By aligning financial strategies with Denise and Jordan’s goals and risk profile, we’ve empowered them to transition smoothly into retirement while concurrently fostering wealth growth.
Through a comprehensive approach encompassing retirement planning, tax optimisation, investment diversification, and debt management, we’ve equipped them with financial resources and stability needed to navigate their evolving circumstances with confidence.
Our ongoing support ensures they can focus on enjoying their lives and work while their financial future remains secure and prosperous.
