Case Study – New SMSF Trustees

The Client’s Needs
This client was referred to our office by an existing client of ours. 

The new client had attended a seminar by an interstate promoter, who was promoting the establishment of Self Managed Super Funds to purchase property interstate.  Our client (who is the trustee of their own SMSF) was concerned that some of the information in the presentation appeared to be incorrect.  They suggested that their friend contact our office prior to taking any action.
We met the new clients, and it was clear that they were not in a position to start their own fund.  They were however keen to put a plan in place to get them to the point where it was viable.  They also needed some personal insurance cover.

Our office developed a strategy for our new clients.  The objective was to build their superannuation savings as quickly as possible, and to put appropriate insurance cover in place.
One year after implementing the new strategy we invited the clients to our office to review their progress.  The clients had been researching the local real estate market and had identified a property that they wished to purchase.  Our office prepared a cash flow analysis of the proposed purchase, and the outcomes looked sound.   Fourteen months after first consulting us, our clients were in a position to establish their SMSF.

Our office prepared a formal recommendation to establish a SMSF, and instructed local professionals to prepare the necessary documents.  The new SMSF is now in place.


"We met the new client, and it was clear that they were not in a position to start their own fund"

 

Case Study – Business Owner

The Client’s Needs

This client made an initial appointment with our office because he needed some help with a range of business issues.  He was operating a significant business that he had built from the ground up over the last 15 years.

Our client felt that he was not getting the information from his accountant that he needed – it was always late.  He felt like he was not controlling the business as well as he could.  He wanted to know where the business was up to on a regular basis - not only at the end of the financial year.

He was also thinking about other related issues:

  • How he could hand the business over to his son at some point in the future
  • When could he afford to retire from the business
  • How could he fund his retirement income needs

His accountant had established a self managed super fund for him, and he needed some advice on managing the fund, and having the fund purchase an investment property.

He also wanted to increase the amount of cover under his Income Insurance policy. 

 

How We Helped

We sorted the insurance needs out fairly quickly.

We introduced the client to an alternative accountant who specialises in working with business owners.  We recommended that our client engage the accountant on an ongoing basis to have all of the book-keeping completed promptly, and to schedule quarterly meetings with our client to review the business operations:

  • Quarterly cash flows
  • Quarterly Profit and Loss reports
  • Monitoring the likely tax position at the end of the financial year
  • Implementing tax management strategies prior to 30th June

The process has been in place for several years.

When our client engaged the services of his new accountant, the business and SMSF tax returns were several years overdue.  The new accountant lodged the necessary returns, and lodged amended tax returns for several previous years for the business and the self managed super fund.  These resulted in total tax refunds in excess of $60,000(!) from the ATO.

We also introduced our client to an Estate Planning Specialist to address our client’s needs.  These included managing the transfer of his business assets and personal assets to his preferred beneficiaries in the event of his death.  We provided a detailed brief to the solicitor on our client’s behalf.  The Estate Plan is now in place.

Our client can afford to retire, and there are adequate assets invested to fund his retirement income needs.  We are now working with him, the accountant and his son to transfer the business in an orderly manner, while managing the tax and other consequences.

Our relationship has been ongoing for eight years, and we envisage working together for many years to come.

 

Some Testimonials from our clients

Client wanting to know if she can afford to retire
I was referred to Frost Financial Planning by my accountant.  My financial situation had recently changed and I required advice on whether my future plans were financially realistic. I wanted to stop full time work in four years, sell my home and move closer to my family.

It was important for me to find an advisor that would listen to what I wanted to achieve in the four years leading up to ceasing full time employment and not just focus the discussion on superannuation planning.

I was slightly anxious on my first appointment; however David Smith is a calm and considered man who listened and acknowledged what I wanted to achieve financially. David presented information in a straight forward way. He made the information easier for me to understand.  I was particularly pleased that David did not try to sell me financial products when developing my financial plan.

David’s advice addressed my financial concerns. I now have a financial plan in place for the next four years and a greater understanding of my future financial plans for retirement. I would be happy to recommend Frost Financial Planning to other people.

57 year old Female Teacher, Darwin.

October 2013


 

" I would be happy to recommend Frost Financial Planning to other people"

 

Clients Saving for their first home
Acting on our advice, our clients had commenced an investment plan several years ago while residing in the NT. When they moved interstate they were able to purchase their first home.  After completing their purchase, they forwarded an email to our office.

“Thanks David.  We hope to still be able to keep investing and pay off our mortgage.  You have been our saving grace over the years and without your guidance, we would not be in this situation that we can put a deposit down.”

January 2014

 


"Without your guidance, we would not be in this situation"

 

Clients entering retirement
You have helped enormously in realising one of our life dreams - to achieve retirement at 55 years following long and fulfilling careers in the public sector in the Territory.  We never thought it possible until you and your efficient and helpful team made it possible.

We are absolutely delighted with your service. We would like to express our gratitude for really listening to understand our needs and lifestyle aspirations. What really impressed us were your depth of knowledge in the complex area of super and common sense approach. Particularly reassuring is our certainty in the absolute integrity of your dealings with us. Moreover, it is really refreshing to work with a financial adviser who truly cares and engenders trust and respect.

For all these reasons, we gladly recommend your services whenever possible. May you prosper, along with your clients.

Warmest wishes.

D & A Ellis

September 2014 


"We gladly recommend your services whenever possible"