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SMSF
Case Study "Maximise your SMSF with professional advice"
JTB Studios
Private Client Adviser
20 Jan 2016
Concerned with the contribution cap limiting his ability to accumulate sufficient funds for his future retirement, and having previously managed his SMSF independently, 47-year old Michael engaged Hewison Private Wealth in 2014 to provide SMSF advice.
At the time of engaging Hewison Private Wealth, Michael earnt more than $300,000 per annum and was salary sacrificing the maximum $30,000 per annum.
Working collaboratively with Michael, Hewison Private Wealth’s senior executive team was able to restructure his SMSF and continues to provide ongoing portfolio management and technical advice on superannuation legislation to magnify capital growth over the long term.
Part of Hewison Private Wealth’s sophisticated strategy included the introduction of Self-Funding Instalment Warrants, which magnifies capital growth over the long term while at the same time minimising tax applicable to concessional superannuation contribution.
As a result of the investment of $500,000 into Instalment Warrants, Michael has benefited from the following:
- Leveraged exposure to a portfolio of quality Australian company shares.
- Excess franking credits of around $14,000 generated by the Self-Funding Instalment Warrants were sufficient to negate contributions tax of $9,000 applicable to Michael’s salary sacrifice contributions. The remaining excess (around $5,000) was refunded into the SMSF in cash for investment into other assets.
Individuals should always seek tailored advice from a qualified financial adviser. If you believe the above scenario could be of benefit to your own personal circumstances, please contact Hewison Private Wealth for more information.
Hewison Private Wealth is a Melbourne based independent financial planning firm. Our financial advisers are highly qualified wealth managers and specialise in self managed super funds (SMSF), financial planning, retirement planning advice and investment portfolio management. If you would like to speak to a financial adviser on how you can secure your financial future please contact us 03 8548 4800, email [email protected] or visit www.hewison.com.auPlease note: The advice provided above is general information only and individuals should seek specialised advice from a qualified financial advisor. The views in this blog are those of the individual and may not represent the general opinion of the firm. Please contact Hewison Private Wealth for more information.