Self Managed Superannuation Fund Benefits Part 2

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Total annual ongoing fee savings are $6,216/year plus the addition of financial planning and accounting advice 

 

The benefits of a Self Managed Superannuation Fund (SMSF) are best shown through actual case studies for clients I have helped.

In the following case study, the wrap super fund was Asgard eWRAP Super but a similar result would be achieved for other wrap super funds such as: AMP Flexible Super, AXA North Personal Superannuation, AXA Summit Personal Super, BT SuperWrap, Colonial First State FirstWrap Plus Super, IOOF Portfolio Service Personal Superannuation, netwealth Super Wrap, Macquarie Super Wrap, MLC Wrap Super, MLC Navigator Retirement Plan, Perpetual WealthFocus Super Plan and OnePath PortfolioOne Superannuation.

 

Situation

  • John is 68 and Sarah is 64 (both retired)

  • $490,000 combined wrap super funds

  • $60,000 in direct Australian shares (non-super)

  • Wrap super fund invested in a growth portfolio with investment manager fee of 1.00% per annum

  • Total annual ongoing fees are $12,800 (includes investment manager fee of $5,500, administration fee of $4,000 and financial advice fee of $3,300)

  • They wanted to reduce their wrap super fund fees


Strategy

  • Establish a SMSF with corporate trustee

  • $490,000 rollover to SMSF

  • $60,000 shares sold and contributed to SMSF

  • $550,000 account based pensions started

  • SMSF invested in a growth portfolio with:

 

Fees

  • Total setup fees were $3,303 including:

    • $153 brokerage fees to sell existing Australian shares

    • $670 brokerage fees to purchase Australian shares

    • $1,330 to establish a SMSF with corporate trustee

    • $1,150 to establish 2 account based pensions

  • Total annual ongoing fees are $6,584* including:

    • $3,564 financial adviser fees

    • $2,800 accounting and audit fees

    • $220 investment manager fee

* Importantly will remain similar as SMSF balance increases

 

Result

  • Total annual ongoing fee savings are $6,216/year plus the addition of financial planning and accounting advice

 

Do you want the following from your super

  • Control

  • Tax savings

  • Cost savings

  • Estate planning flexibility

  • Personalised strategies to help you maximise the financial opportunities available so that you can secure your financial future

 

Call 9372 7955 to discuss if a SMSF is right for you.