Welcome back!
Scene One – Providing Entity
Hi Steve and Amanda! Rod here from Q 4 Wealth, presenting to you your personalised video Statement of Advice on the XX of April 2025. My authorising licensee and contact details are on the screen now, should you wish to reach out to me at any time. Okay, lets get right into it.
Same as all Scene 1
Scene Two – The Client
You are married and would like to retire within the next 2 years.
Steve is preparing for the sale of his business which is expected to net him a lump sum of capital and he would like to retire once the sale process has been completed.
You are both married and would like to retire within the next two years. Steve, you are preparing for the sale of your business which is expected to net you a lump sum of capital, and you have come to me seeking advice with a few goals in mind which we will cover next.
Show Steve and Amanda as young 50yo couple dressed casually and walking on a beach holding hands. Then show Steve shaking the hand of another middle aged man wearing a suit, and show big Cash Notes next to Steve and a contract scroll next to the other man.
Scene Three – Scope And Goals
You would like to repay your mortgage as soon as possible. However you would like to help your daughter with the purchase of her property and help your son with the repayment of his outstanding HECS debt in the meantime.
You would like to build an investment portfolio of various asset classes and generate sufficient income to fund your lifestyle.
You would like to minimise tax logically and legally.
You would like a review of your superannuation accounts to ensure they are in line with your goals and objectives. You would like us to consider a SMSF so that you are able to buy direct property at some stage in the future using your super.
You would like to build sufficient wealth to ensure your family is adequately protected in the event of an accident, illness or death.
You would like to feel secure about finances now and in retirement. Steve would like to work less and retire fully once the business is sold. You would like to retire on an income of $120,000 p.a. plus $50,000 p.a. for travel in today’s dollars. You expect to undertake renovations on your principal residence at an expected cost of $300,000. You would like to spend $100,000 on a caravan when you retire. Upon the successful sale of your business at a high valuation, you intend to acquire a lifestyle property, such as one on Straddie Island. Additionally, you plan to purchase a substantial parcel of land, approximately 100 acres, to serve as a vacation retreat for your family and friends.
You want to review your estate planning needs to ensure they are up to date and in line with your wishes.
We agreed that the scope of the advice will cover personally held investments, establishment of a self-managed super fund, and also investments within the self-managed super fund.
Your goals are as follows:
You would like to repay your mortgage as soon as possible, however you would also like to help your daughter with the purchase of her property and your son with the repayments of his hex debt.
You would like to build an investment portfolio consisting of various asset classes generating sufficient income to fund your lifestyle.
You would like to ensure that you minimise tax in a logical and compliant manner.
You would like a review of your superannuation accounts to ensure they are aligned to your goals, as well as considering a self-managed super fund to purchase direct property in the future.
You would like to build sufficient wealth to ensure that your family is adequately protected in the event of an accident, illness or death.
You would like to be able to retire on an income of $120,000 per annum plus $50,000 per annum for travel in today's dollars.
You would like to renovate your principle residence costing $300,000, purchase a caravan for $100,000, purchase a lifestyle property in Stradboke Island, and purchase a 100 acre land to serve as a vacation retreat for your family and friends.
Lastly, you would like a review of your estate planning needs to ensure they are up to date and in line with your wishes.
Scope:
1. Personal investments
2. Establish SMSF
3. SMSF investments
Goals:
1. Repay mortgage, assist daughter with property purchase, assist son with extinguishing HECS debt
2. Investment portfolio with varying assets and generating sufficient income in retirement
3. Minimise tax
4. Review existing super funds and consider an SMSF to purchase property
5. Build sufficient wealth to self-insure
6. Retire on $120k pa plus $50k pa for holidays
7. Renovate home for $300k, buy caravan for $100k, buy holiday home, buy 100 acre land
8. Review estate planning
Scene Four – The Advice
A SMSF provides you access to a wider range of investment options including the ability to purchase commercial property which you would like to do at some stage. Additionally, the SMSF can be a cost-efficient structure, particularly for larger account balances, which we expect for you both. Developing an investment strategy will ensure that you meet your obligations as a trustee under the Superannuation Industry (Supervision) Act 1993.
There are upfront and ongoing costs of running a SMSF including having to prepare an annual financial statement and tax return and ASIC annual returns for the trustee company.
Steve and Amanda, we recommend you both make concessional contributions up to your concessional contribution cap of $30k each for FY25 and FY26. From July 1, 2025, we recommend you establish a regular contribution of $5k/m to smooth out these contributions from a cashflow perspective.
By making the concessional contribution of $30,000 each, we estimate that you will each save 47% or $14,100 in personal tax or $5,100 net of tax after allowing for 30% super contribution tax.
Superannuation benefits cannot be fully accessed until you meet a condition of release.
"Steve, we recommend you contribute at least $17k into the SMSF in FY25 as a carry forward concessional contribution. Amanda, we recommend you contribute to contribute at least $25k into the SMSF in FY25 as carry forward concessional contribution. Amanda, we recommend you contribute to contribute $80k ($6,666/m) into the SMSF in FY26 as a carry forward concessional contribution. "
"Steve, by making the additional contribution of $17k, we estimate you will save $7,990 in personal income tax or $2,890 net of tax after accounting for the 30% super contribution tax. Amanda, by making the additional contribution of $25k in FY25, we estimate you will save $11,750 in personal income tax or $4,250 net of tax after accounting for the 30% contribution tax. Amanda, by making the additional contribution of $80k in FY26, we estimate you will save $37,600 in personal income tax or $13,600 net of tax after accounting for the 30% contribution tax. "
Superannuation savings are preserved until you meet a condition of release.
Steve and Amanda, we recommend you each contribute $120k ($10k/m each) as non-concessional contributions (NCC’s) in FY26 into your SMSF.
NCC’s allow you to save your surplus funds in a more tax efficient environment than if you were to hold them personally or in a company or trust.
Superannuation savings are preserved until you meet a condition of release.
Steve and Amanda, we recommend you establish a new Investment Company, with you both as directors and your existing family trust as the shareholder.
Investing in the company will allow you to cap any income/capital gains at the 30% corporate tax rate, which is likely to be lower than your marginal tax rate currently of 47%. However, a company is not eligible for the CGT discount (generally 50%) if an investment is sold at profit after 12 months. This means you could pay 30% tax on capital gains versus up to 23.5% if held personally.
There are upfront and ongoing costs of running a company including having to prepare an annual financial statement and tax return and ASIC annual returns for the company.
Steve and Amanda, as directors of a corporate trustee for your SMSF and directors of your investment company, we recommend you open a Macquarie Cash Management and Cash Management Accelerator Account for each respective entity.
You will have a cash account for your new entities that can be used for deposits and withdrawals.
The cash accounts are not intended to provide long term investment returns and therefore money left in this account for extended periods of time will not generate returns typically available from other long-term alternatives.
Steve and Amanda, as directors of a corporate trustee for your SMSF and directors of your investment company, we recommend you open a HUB24 investment choice account for each entity.
An investment platform provides access to a wide range of investments with no minimum amounts, offers advanced features like tax optimisation, trade netting to reduce brokerage costs, reduced investment administration and provides comprehensive reporting including capital gains tax tracking and one annual tax statement.
If you remove us as financial adviser on the account, you will be subject to the standard terms and conditions and lose the special pricing discount currently available to you as a q4 wealth client.
"For your SMSF, we recommend you establish a regular investment plan of $31,666/m from your Macq CMA into the HUB24 Investment Account. This amount includes concessional, catch-up, and non-concessional contributions for FY26 for you both as mentioned in previous strategies (i.e. $30k + $30k + $80k + $120k + 120k = $380k / 12 months = $31,666/m). For your Investment Company, we recommend you establish a regular investment plan of $65,000/m from your Macq CMA into the HUB24 Investment Account (i.e. $780k / 12 months = $65,000/m). "
It helps reduce the impact of market volatility by spreading out your investments over time.
In a steadily rising market, a dollar cost averaging strategy might result in missed opportunities for higher returns.
"We recommend that you reduce your home loan by $665k funded by your quarterly dividend payment expected to be received in Feb and May 25. We recommend you fund the loan to your daughter ($280k) and the repayment of your son’s HECS/HELP debt ($35,000) from your home loan redraw. We recommend that you reduce your home loan to nil funded by your quarterly dividend payment expected to be received in Aug 25. "
This allows you to meet your stated goal of reducing your non-deductible home loan and helping your daughter/son with setting up their future.
Using your home loan redraw to assist your daughter and son will result in increased interest costs and is a non-deductible expense.
Establish Death Benefit Nominations for your Super Funds in favour of your preferred beneficiary/beneficiaries.
Nominating a death beneficiary for your super fund will assist to transfer your superannuation assets to your preferred beneficiary with minimal delay.
A nomination may be binding or non-binding. If the nomination is non-binding, then the trustee of your superannuation fund may take it into account but is not bound by it.
My first advice to both of you is to establish a self-managed super fund. Further to this, we recommend you establish a corporate trustee and both become directors and members. We also recommend you develop an investment and insurance strategy for the self-managed super fund. A self-managed super fund allows you to purchase commercial property, which is one of your goals, and is cost-effective for larger account balances, which you have. However, please note that there are both upfront and ongoing costs of running a self-managed superannuation fund, and will require a significant time commitment due to the operational responsibilities you will have as directors. These include preparing annual financial statements, tax returns and annual returns for the trustee company. Further, operating a self-managed superannuation fund does not make you eligible to apply for the regulatory compensation scheme.
My second advice to both of you is to make the following pre-tax contributions for 2025 and 2026. Please note that these contributions are pre-tax, which means that by making these contributions, you will save the listed amounts of tax. However, please be mindful that by contributing to super, you will not be able to get access to these funds until you meet a condition of release.
My next advice is for both of you to make the following post-tax contributions into the self-managed super fund in 2026. While post-tax contributions mean you won’t get an immediate tax deduction, your funds will be invested in a more tax efficient manner than if you were to hold them personally. Once again, please be mindful that by contributing to super, you will not be able to get access to these funds until you meet a condition of release.
My fourth advice is to establish a new Investment company with both of you as directors and your existing family trust as the shareholder. Doing so and investing via this company means that you will cap any income or capital gains tax at the corporate tax rate of 30% as opposed to your marginal tax rate of 47%. Please be mindful though that a company is not eligible for the capital gains tax discount, and like a self-managed super fund, there are ongoing costs and responsibilities of running a company such as reporting and tax returns.
My fifth advice is for both of you as directors of the self-managed super fund and investment company. I recommend that you open the following accounts for each entity. Cash accounts allow for general withdrawals and deposits, while the investment platform provides access to a wide range of investments and advanced tax optimization and reporting benefits. Please note that if we part ways and are removed as the designated financial adviser on the account, you will be subject to the standard terms and conditions and lose the special pricing discount currently available to you as one of our valued clients.
My sixth advice, to the self-managed super fund, is to set up a regular investment plan of $31,666 per month into the hub two four investment account. This is funded by your various, previously mentioned contributions. Further, I recommend the Investment Company also have a regular investment plan established of $65,000 per month. By setting up a monthly investment amount, you reduce the impact of market volatility by spreading out the investments, a strategy known as dollar cost averaging. However, this can also result in missed opportunities for higher returns in a steadily rising market.
My seventh advice is to reduce your home loan by $665,000, funded by your quarterly dividend payment from your investments to be received in February and May 2025. I then recommend you fund the $280,000 loan to your daughter and the repayment of your son’s hex debt of $35,000 from your home loan redraw. I then recommend you reduce your home loan to nil, funded by your quarterly dividend payments to be received in August 2025. This meets your goals of reducing your non-deductible home loan and assisting your son and daughter with their finances. Bear in mind that withdrawing from your home loan to do so will result in a period of increased non-deductible interest costs.
My final advice to you both is to nominate binding beneficiary nominations to your super fund. This is important because it would be prudent to ensure you know who the super funds will get paid out to in case you pass away. If you fail to do so, your super fund will be awarded at the discretion of the super fund trustee, and this may not align with your wishes.
Show Building with label “SMSF” underneath. Above this, show a smaller different building with label “Corporate Trustee”. On the left side of this building, show head of Steve and on right side of the building, show head of Amanda. Show blue arrows going from the heads to the corporate trustee building and label the arrows “Directors”. On the left side of the SMSF building, show a scroll document with label under it “Investment Strategy” and on the right side, show insurance shield with label “Insurance”. On next page, show image of an office building with $ sign next to it. Then under it, show a list of four labels in order: “Upfront and ongoing costs”, “Significant time commitments and responsibilities”, “Financial statements, reports and tax returns” and “No compensation scheme”. On the left of each label, please put a red exclamation mark
Show PRE-TAX table in the page for the entire VO.
Show POST-TAX table in the page for the entire VO.
Show building with label “Investment Co” underneath. Above this, show a image of a safe box with label “Family trust”. On the left side of the investment building, show head of Steve and on right side of the building, show head of Amanda. Show blue arrows going from the heads to the corporate trustee building and label the arrows “Directors”. On next page, show label “Tax capped at 30% only” with green tick next to it. Then show iimage of an office building with $ sign next to it. Then under it, show a list of four labels in order: “Upfront and ongoing costs”, “Significant time commitments and responsibilities”, “Financial statements, reports and tax returns” and “No compensation scheme”. On the left of each label, please put a red exclamation mark.
Show ACCOUNTS table in the page for the entire VO.
On top middle, show SMSF building, then under this, on the left side show piggy bank with Macquarie label then green arrow with label “$31,666pm” then HUB24 logo. Then repeat this underneath, but instead of SMSF building, show Investment Co building and label green arrow with “$65k pm”.
Show HUB24 logo then blue arrow with label “$665k” then show image of a house and image of a bank that is smaller size, and label “Loan” with red arrow pointing down. Then under this, show image of a house and image of a bank same size, then show blue arrow going from these two to image of son with label “$35k” and then image of daughter with label “$280k”. Then under this, show HUB24 logo then blue arrow without label then show image of a house and image of a bank that is smaller size, and draw red cross over the bank.
Show same image as previous binding beneficiary nominations
Scene Five – Fees And Costs
Product fees
Steve and Amanda, there are three elements of costs you need to be aware of. The first is a one-off advice fee of $9,240, which covers the research, formulation and implementation of this advice. I note that you have already paid half of this fee.
The second is an ongoing fee which amounts to $620 per month. This is to be paid to me for managing your investments and accounts, including providing quarterly reporting and fund updates, annual reviews and economic updates, and access to me and other Q 4 Wealth members throughout the year.
The third set of costs are ongoing product costs, as you can see outlined in the following tables. The first table shows your existing product fee to be a combined $3,850, while your product fee if you agree with my recommendations are a combined $10,445. Please note that the two main contributors to this increased ongoing product fee is due to the costs associated with running a self-managed super funds, as well as the greater funds under management.
For first two paragraphs, this is same as Jim and Barb previous video for Rob.
For third paragraph, please show the Existing product fees table first, and underneath this, the Ongoing product fees table. When VO mentions $3,580, please circle the two bold numbers in the Existing table which add up to $3,850. Same thing for when VO mentions $10,445.
Scene Six – Disclosures
Right, we have now finished outlining the advice and have some important information to go through.
First of all, this Statement of Advice is prepared for you only and therefore should not be implemented by anyone else.
Secondly, we have based this advice on information which you have told us, so please let us know if any information contained in this video does not accurately describe your current situation.
Next, Q 4 Wealth does not have any third party interests or associations with any product providers recommended to you, and the advice is therefore not conflicted.
Please note there may be a 14-day cooling off period with respect to the financial products we have recommended, during which you may make amendments or request refunds.
And finally, please note that the advice in this video is valid for a period of 30 days. If you have not confirmed acceptance within this time, we may need to revisit your circumstances.
Steve and Amanda, this advice purely considers your interests only, and is therefore in your best interests. Please sign the Authority to proceed if you wish to proceed with my advice. Otherwise, if you have any questions, please let me know. Thank you!
Important Disclosures
1. This SoA is for you only
2. This SoA is based on your circumstances that you have informed us
3. No conflicts or associations.
4. There may be a 14-day cooling off period, based on the PDS
5. This SoA is valid for 45 days