Client 1
61-year-old single male, earning $90,000 salary. $890,000 in super and multiple investment properties. No prior advice. Before advice: Client unaware of the Transition to Retirement strategy (TTR). Superannuation had significant share market exposure (around the time of the GFC). Client experiencing general uncertainty, apprehension and a lack of support. After advice: Super converted to pension mode. Tax on investment earnings reduced from 15% to nil. Investment strategy reviewed to reduce share-market exposure and volatility. Salary sacrifice strategy implemented to reduce personal income tax. Multiple on-site reviews completed to provide general support. Estimated benefit: TTR strategy provided an estimated tax benefit of $10,000 p.a. Client received ongoing support and re-assurance. Investments volatility and risk reduced. 
Client 3
A 54-year-old married male sustained Total and Permanent Disability. Claim lodged for $150,000. Before advice: The insurer agreed to pay the claim. The client’s solicitor successfully managed the claim but was unsure of settlement procedure and taxes. The insurer attempted to negotiate a lump sum settlement and the client received confusing paperwork. The client was confused because of significant financial pressures and complicated paperwork. After advice: We negotiated with the super fund to have the claim paid as a disability pension for 12 months instead of a taxable lump sum. The client could access an existing income stream to fund living expenses. Upon reaching age 55 the client had the option to withdraw the remaining balance of the TPD payment as a tax-free lump sum. All paperwork, negotiations with the insurer and problems with the call centre handled by the adviser. Estimated benefit: Accepting the claim as an income stream for 12 months provided a tax saving of $30,000. 
Client 5
Husband aged 55 and wife aged 53. Both with multiple super funds. Before advice: The client's existing adviser was banned by ASIC. We agreed to act as the new adviser. After advice: Superannuation accounts consolidated and transferred to more appropriate funds. Husband and wife investment strategy reviewed and share market exposure reduced. Superannuation converted to pension mode and salary sacrifice strategy implemented. Estimated benefit: Annual investments fees reduced by $7,000 p.a. Tax reduced by $3,000 p.a. |
Client 2
Small business owners. Husband 57. Wife 58. Before advice: Superannuation was invested in a SMSF as per accountants advice. The investment strategy was 100% managed funds. After advice: SMSF closed Super investments transferred to a cheaper and more suitable investment platform and converted to pension mode. Share market exposure reduced. Government co-contribution generated. Estate plan reviewed and updated. Estimated benefit: Investment management fees reduced by $7,794 p.a., $4000 less tax payable p.a. Co-contribution payment of $1500. 
Client 4
54 y.o husband diagnosed with terminal lung cancer. Before advice: No life insurance or income protection. Superannuation death nomination in favour of adult children and conflicting clauses in existing will. After advice: A $20,000 monthly benefit was paid from the income protection policy for the 12 months prior to death. $1 million life insurance paid to SMSF prior to death under the terminal illness benefit. $1 million withdrawn from SMSF tax-free in the days prior to death to fund gifts to the adult children. A new will was prepared and executed on the day of death. SMSF death benefit paid to spouse tax-free. Gifts to children paid tax-free. Estimated benefit: $1 million life insurance paid to the deceased prior to death. $150,000 tax avoided on gifts to children. Costly estate planning issues avoided. Tax-free death benefits paid to surviving spouse. 60 year old surviving spouse received a tax-free retirement income of $100k+ that is expected to last for her statistical life expectancy. |