Breakaway

FINAnCial planning

Retirement Planning
The earlier you start preparing for retirement, the more options you have to set a course that suits you. When you retire, you will receive a number of different payments. How you use those payments could have a significant impact on your financial security and your lifestyle... now and in the future. Breakaway Finance Group can design a plan that will help you to make the most of those payments. The plan will show you how to generate competitive investment returns, maintain a secure income in retirement, minimise tax and qualify for social security benefits (if appropriate).

Make a long-term financial plan
Our experienced financial planners can look at how your needs might change over time. For instance, in the first few years of retirement, you might want to travel or take up a new hobby. Later, you may want to replace your car or renovate your kitchen. Further down the track, you may even want to move into a retirement village. More Australians are realising the need to create a regular, long-lasting income stream to fund their retirement.

The Government has progressively introduced a series of legislative reforms designed to change the way we invest our retirement savings. By providing incentives in the form of tax concessions and social security benefits, the Government has made investments that produce regular, long-term income streams significantly more attractive.

These changes have created some genuine incentives for investing a portion of your capital in long term income stream investments - such as allocated pensions, immediate annuities and superannuation pensions.

Our financial planners can guide you through the various options and strategies to help you make the most out of your retirement money using income stream investments.

BFG Super

The number of Australians choosing to manage their own super through a self-managed super fund (SMSF) is bigger than you might think. There are currently over 395,000 SMSFs with a total of over 500,000 members. An estimated 2,000 new funds are also being established each month. *

How do self managed super funds work?

Broadly a SMSF is a fund with less than five members. Each member is also a trustee of the fund (alternatively the fund can have a corporate trustee structure). Some of the other key features of a SMSF are:

  • An SMSF must be maintained for the 'sole purpose' of providing benefits to members upon their retirement
  • Trustees are required to prepare and implement an investment strategy for their fund. This controls the way contributions are invested
  • Wide flexibility in investment choice for example, direct property, managed investments and direct shares can all be included in the portfolio
  • Approved auditors must be appointed and tax agents, accountants and financial advisers may also be involved in the running of a SMSF
  • Ultimate legal responsibility rests with the individual trustees (i.e. the members of the fund) even if assistance is outsourced to the above professionals

Why consider a SMSF?
Managing your own super could give you greater control and flexibility. The discretion to pick and choose your own strategy and investments, as well as the tax benefits of superannuation makes SMSF a unique investment tool.

What are the pros and cons?
There are number of advantages and disadvantages associated with SMSFs.

Advantages:

  • Investment choice - the portfolio can generally include a wide range of investments
  • Control - trustees have complete control over the fund and its investments (within the legislative framework)
  • Holistic approach - SMSFs may provide you with a range of options in terms of estate planning and benefits payments

Disadvantages:

  • Trustee responsibility - each trustee is fully responsible for the decisions and operation of the fund. This includes the overall legislative compliance
  • Extra costs - a SMSF has additional costs such as the auditing of accounts, tax return administration and supervisory levies
  • Costs can be high - for funds with $200,000 or less, the costs can be relatively high as a percentage of the fund's assets

Speak to your financial advisor

If you want to know more about self managed super, talk to your Breakaway Financial Planner. They will give you more detailed information and point you in the right direction for your circumstances.

HEAD OFFICE

Unit 1, 51 Township Drive Burleigh Heads QLD 4220



Telephone

1300 172 292 or
(07) 5520 6810



Fascimile

(07) 5677 0699

Email

andrea@bafg.com.au

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