CS2 – Intelligence and a whole lot of money doesn’t necessarily equal financial sense!

Sally Shorter* is a busy lady.  Single, no kids, and middle-aged with mid-tier job at a top law firm, Sally is extremely time poor.  When she received a substantial inheritance, she spent two years with ‘organise retirement and financial planning’ on her to-do list.  To her financial detriment the money was just sitting in the bank as Sally was overwhelmed by what to do with such a sizable amount.  She knew of Self Managed Super Funds, but was hesitant to set one up due to their complex nature and keeping up to date with the ever-changing legal compliance and administration.  Even though Sally was financially savvy to a degree, she didn’t have the expert knowledge, the confidence, or the time to invest in managing her money.

Sally’s life goals were to maintain current lifestyle, reduce her working days to 4/wk, ideally retire at age 60, and to have $100k/pa retirement income, plus an additional $40k/pa for travel.

Sally realised more attention needed to be given to her finances / investments with the aim of growing, managing and preserving her wealth for retirement, and she didn’t have the time to commit to it.

JBS’ strategy was to:

•    Ensure correct structures were in place (Self-Managed Super Fund and Family (discretionary) Trust) to maximise her potential;

•    Manage the SMSF inline with government regulations on her behalf, in turn significantly reducing the amount of paperwork Sally has to complete herself, as well as the accounting fees.

•    Regularly provide consolidated reports for her SMSF & Family Trust so she was up to date;

•    Regularly provide direct share updates and recommendations in-line with her risk profile to ensure she was able to buy and sell whenever necessary; and

•    Regularly provide current information on share buy backs, corporate actions etc. – saving her time and hassle of administering it herself.
Within 12 months she has achieved a portfolio income stream of dividends, franking credits and other interest of over 5% which is reinvested where possible or added to the SMSF cash account

To read a detailed strategy for Sally, please click here