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"