Case Studies

Case Study – Sarah Murphy*

 

Sarah was referred to us by her accountant as she was paying a significant amount of tax and was extremely risk adverse. In the past Sarah had suffered a bad experience with a Financial Advisor and was not very keen on coming to see us. (We didn’t take it personally) Sarah’s funds were all in cash and term deposits with an institution.

 

From our discussions with Sarah it was obvious she was looking for someone she could trust to help her to secure her capital, control her funds, minimise her tax. She was interested in managing this all with minimal time input on her side as well as being able to understand everything that was being said and undertaken in simple terms. Most importantly, Sarah wanted to have sufficient capital to retire on. She was a government employee with a government funded Super and it bothered her that she didn’t have any control over it.

 

After understanding Sarah’s personal situation* and running through some viable options that would help her to achieve her personal goals, we recommended that she start a Self Managed Super Fund (SMSF), continue with a term deposit broking account for personal funds and to make non-concessional contributions to her SMSF to the maximum for each year with a strategy to add further funds over coming years to minimise tax.

 

When going through the options with Sarah, we determined with her that whilst an SMSF is a complex strategy and vehicle we made it relatively simple by managing the establishment in conjunction with her accountant. We established and maintained on behalf of Sarah, her cash account, term deposit broking account and online share account.

 

At Sarah’s request, and playing to our strengths, we recommended and placed her investments while she was able to remain in control as we cannot operate accounts without their authorisation, but we did everything for her so she can utilise our expertise and knowledge. We ensured that the investments were simple, low cost and easy for her to understand.

 

We had minimised Sarah’s risk by spreading her term deposit investments across financial institutions to take advantage of the government guarantee on bank deposits. Effectively, providing a capital guarantee on all of her cash and term deposits. We also had minimised her tax through the use of superannuation saving approximately $10,800 per annum in tax on investment income.

 

Ultimately, we had provided Sarah with control over the investment funds but without the complexity of management, giving her the best of both worlds and peace of mind that she would not have a negative experience again. We also provided her accountant with 100% of the information required to complete the tax returns for the super fund – saving them time and making the administration process easy.

 

Sarah has remained informed through regular reviews of her investments and strategies and is on track to reach her goals.

 

At Sinclair Financial Group, we make life simple for our clients by:

  • Understand the rules, regulations and legislation and what works and what doesn’t.
  • Laying out our strategies in a manner that allows you to understand what we are recommending and why.
  • Implementing and managing as much of the process as you want us to.
  • In most cases the client, once understanding what we have recommended, asks us to manage and implement all investments decisions for them.
  • Allowing you to make informed decisions about your financial future.
  • You don’t need to do much other than understand – we will make the process easy.
  • Working with your accountants and solicitors to ensure we are all on the same page.
  • Providing end of year tax statements to accountants
  • Providing regular reporting to clients.

 

At Sinclair Financial Group we believe our advice empowers you and helps you be in control of your financial situation and future. Our strategies are tax efficient and our investment solutions are designed to have low management costs and tax efficient returns.

*Fictitious name for privacy reasons. Please note this advice was set to a particular set of circumstances and is not intended as advice for an individual, anything contained herein is intended as general information. Please contact us to discuss your individual circumstances.
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