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Case Study: Superannuation Consolidation

We recently had a young, 32-year old single male come to see us about superannuation consolidation.

He came to us as he had accrued five different super funds over time as a result of switching jobs and working for different companies during his career. He wanted to consolidate his super, but wasn’t sure which investment option was right for him. This is a similar issue we see with a number of clients who have moved jobs and end up with multiple super funds.

 

1.What We Did:

Firstly, we were able to help him reduce his fees by consolidating his super funds, resulting in him saving $370 pa. Consolidating not only means saving money but means he won’t lose track of this money over time or that it will get eroded in fees.

Because of his age, and time to retirement, we helped him invest the funds he has within super into a high growth style account. A strategy which better suits his age, income and financial position.

To help our client manage and keep track of his investments we set him up with an online account. Helping our client to become more engaged with his super and give him projections of what his funds might look like to him over time.

 

2.Example: The Benefits of Compounding Interest

By making these simple changes, based on current circumstances, if our client was to receive a 6% return between now and 65, his super balance was projected to be $573,600. By being proactive and getting his money invested in an option that better suits him, if the return increases to 8% (2% difference), his balance projection jumps $285,000 to $858,600.

 

 

3.Protecting Our Clients Future:

The client is also in the process of purchasing his first property. We put him in touch with a mortgage broker to help him through the process and make sure the loan was structured correctly and he was getting the best rate.

To ensure our client’s assets are protected we worked with him to make sure he has the right personal insurance (mainly income protection). Being the sole bread winner, it’s important that his income is going to be covered if he were unable to work.

 

 

4.Summary:

All in all, this was simple but effective advice.

By implementing some small adjustments to his superannuation,  our client is on a better investment strategy for his age, income and risk appetite. At the same time making sure he is protecting himself now for income and his ability to maintain his mortgage repayments, in the event he is unable to work.

Financial advice and planning doesn’t need to be complicated and it can often be the small changes that make all the difference.

 

 

SIMMONS LIVINGSTONE & ASSOCIATES GENERAL ADVICE WARNING This information is of a general nature only and neither represents nor is intended to be specific advice on any particular matter. Simmons Livingstone & Associates and Infocus Securities Australia Pty Ltd strongly suggest that no person should act specifically on the basis of the information contained herein but should seek appropriate professional advice based upon their own personal circumstances.

Kris has over 16 years' experience in the business advisory, accounting and taxation industry. His initial years were spent with WHK Group and PKF before founding Simmons Livingstone & Associates in 2013.

As Managing Partner, Kris has steered the firm to success, being instrumental in expansion of the firms client base and subsequent recruitment to increase the professional team size.

He brings his extensive experience within a variety of areas of business services and compliance, and has a proven track record of success with clients from a variety of sectors. Not only is Kris a an exceptionally valuable asset to the firm, his business advice is invaluable for professional service clients, from a financial perspective.

Kris places a strong focus on:

Kris is a forward thinking person who is dedicated to providing his clients with the best possible outcome in all situations. With a keen eye for detail, he ensures nothing is overlooked, so that client outcomes are maximised.

Kris has a young family and outside of work, when he’s not spending valuable time with the family, you’ll find him on the golf course or sampling a brew with the guys.

Simon began his career at PKF and several boutique accounting firms. He has established his reputation for excellent accounting consultancy, which has spanned over 13 years.

Simon is a passionate business advisor, specialising in:

 

Simons personable service and attention to detail ensures his professional relationships remain strong.  As a partner at Simmons Livingstone, Simon has lead the substantial growth of the firms large corporate space.

Through his sporting connections, Simon also has a strong reputation as an industry leader for professional sports men and women, representing sporting players and companies involved in various professional sporting federations and leagues.

Simon is a former representative golfer, and still enjoys a round most weeks. An avid sports enthusiast, you’ll find him kicking back with a red wine if there’s a good game on.

Tom joined the Simmons Livingstone & Associates team to head the financial planning division in 2015. 

Tom has a passion for providing quality advice and exceptional service.

He is driven to:

His approachable and trustworthy demeanour makes his service enjoyable and ensures a relaxed environment for decision making about financial matters.

Tom's extensive network of allied professional services provide the same level of outstanding consultancy, so clients can be assured that any financial problem or opportunity will be addressed with Tom's help.

Outside of work, Tom likes to be outdoors. He plays football and golf amongst other things. You will also find him enjoying good food and good beer with good friends.

Sam is our newest Partner to the Simmons Livingstone & Associates team, working with Tom in our Financial Planning division. 

Sam has a strong passion to educate and inform his clients about the importance of financial planning and getting started early. 

He is focused on:

Sam's greatest asset is his ability to support his clients to better financial wealth using his extensive network. 

 

SLG Financial Services Pty Ltd ABN 63 734 659 141 Ltd [t/a Simmons Livingstone & Associates] is a Corporate Authorised Representative of lnfocus Securities Australia Pty Ltd ABN 47 097 797 049 AFSL and Australian Credit Licence No. 236523. Please Note: SLG Financial Services Pty Ltd is only authorised by lnfocus Securities Australia Pty Ltd to provide services related to financial products. Where services provided by SLG Financial Services Pty Ltd extend outside of financial products, please be aware that lnfocus is not responsible for this advice or service.