Welcome back!
Scene One – Providing Entity
Hi KerryAnne! Peter here from Quill Group Financial Planners, 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
Working part-time as swimming instructor, recently separated with two adult shilden, Sarah and Max.
Having recently received a financial agreement after separation, KerryAnne is seeking advice on rolling over her superannuation benefit of approximately $600,000 from the family SMSF into a personal super fund in her name. In addition to this she will receive a $400,000 cash payment , the family home worth approx. $1.6mil and a sum of $500pw over the next two years. As part of this advice she is seeking advice and guidance on redoing her estate planning, looking for options for her cash, exploring insurance options and ways in which she can secure her future beyond her working life and into retirement. As part of this advice consideration needs to be given to potential short and medium term expenditure on a car replacement, trip to visit her son in London and potential assistance her daughter Sarah may require for a medical condition.
You are recently separated and have two adult children - Sarah and Max. You enjoy working part time as a swimming instructor. You have come to me seeking assistance with your finances after settling your separation.
Show her as a 50yo woman with a young approximately 30yo adult male and a young approximately 30yo adult female on either side of her, all smiling. Then show her teaching a young child how to swim in a swimming pool. Then show a big green dollar sign with a red question mark next to it.
Scene Three – Scope And Goals
Rollover her SMSF superannuation benefit of $600,000 to a personal super fund as part of the financial settlement.
Look at short, medium and longer term options for the cash portion of the settlement, amounting to $400,000. Allowing for a $10,000 trip to visit son in London and a car replacement of $30,000 within the next few years.
Redo estate planning consisting of a new will, enduring power of attorney and death nominations.
Help to understand retirement options and whether it may be possibly in retirement to access any centrelink benefits.
As part of a second stage of advice, review any existing insurance policies and explore options for future insurance protection.
Transfer of tax and accounting matters from existing providers.
We agreed that this advice will cover superannuation platforms, as well as investment advice within superannuation.
Your goals are identified as follows:
You would like to rollover your $600,000 self managed super benefit to a personal super fund.
You would like to explore short, medium and long term investment options for the $400,000 cash settlement from your separation, inclusive of a $10,000 trip to visit your son in London and a $30,000 car purchase within the next few years.
You would like to redo your estate planning consisting of a new will, enduring power of attorney and binding death nominations.
And finally, you would like to understand what your retirement options are, including any potential Centrelink benefits.
Scope:
1. Superannuation (platform)
2. Superannuation (investment)
Goals:
1. Rollover $600k from SMSF to super fund
2. Invest $400k cash from settlement (including $10k London trip and $30k car purchase)
3. Revise estate planning
4. Review retirement planning and Centrelink benefits
Scene Four – The Advice
as superannuation is preserved in the fund till at least aged 60, you will not be able to access this for a reasonable period of time. Given that this capital sum will be your principal source of income in retirement it is important to ensure that you generate sufficient growth on this initial sum of $600,000 over the medium to longer term in order to sustain a reasonable income throughout retirement.
the higher the growth component in the portfolio the higher the degree of volatility and hence risk associated with this investment. In torder to limit the downside risk it is suggested that the initial cash rollover be dollar coast averaged into the portfolio over a six month period. This would mean that whilst the funds would commence earning interest from day 1, they would be progressively invested in a balanced investment portfolio at the rate of $100,000 pm over a six-month period. In the event that the market suffered a sharp downturn then the remaining funds could be invested to take advantage of any sharp decline that the share or property market experienced. Important to mitigate any risk by checking that you are no longer a member or director of existing SMSF once your funds are rolled over.
Retain a sum of say $20,000 in a day to day account to pay for any additional or one off expenses. This could be the same account that is topped up by the $500pm payment as well as your gross wage. The balance of $400,000 would be set aside in separate cash accounts for medium term use. The investment of monies held outside super would be invested conservatively, at least until a regular pattern of income and expenditure is established. Once established and any one-off expenditure such as a trip to London of say $10,000, car replacement of say $30,000 is accounted for then a portion of this cash sum could be conservatively invested. This would be especially important once the $500pw ended in two years and you were still not able to access any superannuation to help top up your wages to help meet your expenditure needs.
retain a conservative mix of cash or fixed income investments in the short term to mitigate any short term capital risk and provide additional sums over and above other income for travel and car replacement. Look at options over a one to two year period for investment of a portion of your capital in order to generate additional income that will bridge the gap between expenditure and wage income once the weekly payment stops.
your cash or fixed income investments wont keep up with inflation
facilitate a meeting with estate planning specialist to arrange wills and EPOA.
Basis/risk : Important to arrange as soon as possible especially if existing will provided any benefit to ex-husband.
Super Product • Open a new Hub24 Super account • Invest in EQ Diversified SMA $592,500 and Cash $7,500 • Dollar Cost Average the $592,500 into EQ Diversified in monthly parcels of $100,000 per month over 6 months.
Competitively priced super account with specialised managed account options; investment strategy matches your Balanced risk profile with expected returns above inflation over the longer term; gradual investment of cash into the market to reduce timing risk
investing in growth assets carries market risk and will mean your portfolio will be subject to price volatility.
Cash product • Retain $25,000 of your $400,000 in cash assets in your personal bank account for day to day expenses. Invest the remaining $375,000 in the Macquarie Accelerator account, which is a high interest bearing bank account.
keeps adequate cash reserves with most invested in an at call account that earns a higher rate of interest than a typical bank savings account
returns may not keep up with inflation
My first advice is to rollover the $600,000 benefit from your existing self managed super fund to a Hub two four super account. These funds are to be invested as your principal source of income in retirement and as such, is preserved in the fund until you turn at least 60.
My second advice is to place $7,500 of these funds in cash and invest the remainder in E Q Diversified separately managed account. Specifically, I recommend you invest the funds in monthly parcels of $100,000 across six months so that the funds are gradually invested into the market. This fund is cost-effective and is aligned with your balanced risk profile.
My third advice is to retain $20,000 in an everyday transaction account, for example the account in which you receive $500 per week from your settlement, and put the balance of the $400,000 into a Macquarie Accelerator Account. This product is a high interest at call account, meaning you will be able to fund your London trip and car purchase with these funds while also earning higher interest than typical bank accounts. Please note though, that the returns may not keep up with inflation, so in future, I would look to recommending you to invest these funds.
My final advice is that we should organise a meeting with appropriate legal professionals that can advise you on your estate planning and power of attorney requirements. This is important given your current marital situation and I am happy to facilitate this meeting.
Show Building with label "SMSF" and then blue arrow with label "$600k" to another building with HUB24 logo. Under this, show label "retirement planning - income for retirement" with a green tick on the left, and under this show label "preserved until age 60" with a red exclamation mark.
Show same image for second advice as Sam's advice to Wendy video. Show $7,500 cash and $592,500 in "EQ Diversified", and show pie chart labelled "Balanced" with 60% growth and 40% defensive. Then under this, show green dollar sign, then show three blue arrows labelled "$100k"going from dollar sign to "EQ Diversified" logo.
Show piggy bank with label "$400k" top middle, then show blue arrow going left labelled "$20,000" pointing to Bank Building image with label "Existing account". Then show blue arrow with label "$380k" going right to Bank Building with Macquarie logo on top. From this building, show two blue arrows going down, one pointing to image of plane and UK flag, anotther pointing to image of a SUV car.
Show image of one woman and two men having a meeting at a table and show three labels with green ticks next to each one: "Legal professionals", "Update will", "EPOA".
Scene Five – Fees And Costs
Product fees
Let's discuss fees.
First of all there is a one-off upfront fee for my advice amounting to $4,400. This is paid by you to me and covers the research, formulation and implementation of this advice.
There is an ongoing fee, which amounts to $440 per month, deducted from your superannuation account. This ongoing service fee places you on our Essentials Package, which means you will receive an annual meeting with your relationship manager to review your portfolio and strategy, an annual comprehensive portfolio report, an annual review of your risk profile and asset allocation, an annual review of your estate planning needs, and regular contact with me as and when required.
Lastly, please note the following two tables. The first demonstrates that your annual product costs amount to $7,990. The second is your asset allocation, which demonstrates that my investment recommendations are aligned to your balanced risk profile.
Put "$ Upfront" label and put a red cross over it.
Show another with "Ongoing fee - $440pm" label. Then show these things listed underneath it:
- Annual review meeting
- Annual portfolio report
- Annual risk and allocation review
- Annual estate planning review
- Access to me as your adviser
Show first table, then second table.
Scene Six – Disclosures
KerryAnne, we have now covered the advice in full and with that, there are a few important points I need to make.
This Statement of Advice is for your consideration and your use only.
We have based this advice on information gathered from our discussions, and your completed Client Confidential Data Collection Booklet. We have assumed that this information is correct. Should any information have changed or be incorrect, you should contact us so we can review these strategies.
For information regarding benefits, interest and associations, please refer to the Financial Services Guide. We have already provided a copy, however you can view the latest version on our website. Alternatively we can e-mail or post a copy to you on request.
After you acquire certain financial products, a 14 or 28 day cooling off period will apply in certain circumstances. This means you can cancel or transfer to another financial product within this period if you decide this financial product no longer meets your needs. Please refer to the relevant product disclosure statement for details regarding your cooling off rights.
Finally, my advice remains current for a period of 30 days from the date of this video. If you decide to implement our recommendations after this time, or if your circumstances change during this time, please contact me so we can confirm that the advice continues to be suitable for you.
Doris, 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!
1. This SoA is for you only.
2. Let us know of any incomplete or inaccurate information immediately.
3. While we do not share any association with any of the products we have recommended in this advice, please refer to our FSG for further disclosures on any broad associations we may have.
4. 14-28 day cooling off period - please check relevant PDS
5. This advice is valid for 30 days from today's date.
Rest of scene is same as other final scenes