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Smsf presentation print colors and disclaimer 2014


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Smsf presentation print colors and disclaimer 2014

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Smsf presentation print colors and disclaimer 2014

  1. 1. CAN YOU ACHIEVE FINANCIAL FREEDOM ? Seek employment services research indicates that 83% of people hate their jobs! Yet so many still are following the 19th century formula of working hard in a job for 40 to 50 years of their life so they can retire at age 65 years old to the good life? 96% of the population will be following this personal wealth creation formula and will find themselves working an average 40+ hours a week for their wage. Have you ever wondered in the 21st Century how that formula is working for people? The following facts exist for every 100 people that reach 65 years of age 25 Will be dead; 20 Will have annual incomes under $10,000; 51 Will have annual incomes between $10,000 to $35,000; 4 Will have incomes over $35,000; 1 Will be a Millionaire. Have you ever wondered why there are some people who start with nothing and manage to become millionaires, while others, who seem much more intelligent, often with a higher education, yet in terms of financial success fail, their lives are filled with hard work and struggle!
  2. 2.  Personal name(s)  Trusts – with a personal or company trustee – Lenders have different requirements in this area.  Self Managed Superannuation Fund (SMSF), purchase outright or borrow via Self Managed Superannuation Fund.  Pre Approval Process – With SMSF we recommend applying for a pre-approval with an appropriate lender before going to the expense of setting up a fund. We can do that for you at no cost or obligation.
  3. 3. Once you have your pre-approval, you need to have a Self Managed Superannuation Fund established in place before you purchase a property. Your SMSF appoints a Property Trustee to purchase the investment property on its behalf, as security for the loan. The Property Trustee must also be in existence prior to any property being purchased. The SMSF contributes cash to pay the deposit on the property and to meet legal costs and stamp duty. The SMSF then manages the property in the same way as any other real estate investment. The property is held in trust and the legal title is either transferred to the SMSF when the loan has been repaid or the property has been sold.
  4. 4. Lender SMSF Limited Recourse Loan Property Trustee Lease Tenant Rent Superannuation Contributions.
  5. 5. Contribution required to purchase a property. Superannuation Fund with a company as Trustee. Purchase Property $450,000-00 Government Fees $ 20,000-00 Loan Amount @80% $470,000-00 Equity from Superannuation Fund required $140,000-00 Superannuation Fund with individuals as Trustees. Purchase Property $450,000-00 Government Fees $ 20,000-00 $470,000-00 Loan Amount @72% $338,000.00 Equity from Superannuation Fund Required $132,000.00
  6. 6. Use current superannuation assets as equity to fund the deposit. Use Superannuation Contributions to fund repayments. Rental can be used to repay principal. 15% tax on earnings and 10% on Capital Gains before retirement. By using negative gearing within super, the tax rate on the earnings can be brought down as low as 0%. No tax payable on income or Capital Gains on disposal in Pension mode over the age of 60.
  7. 7. Banks will lend to 72% if the fund has individual trustees or 80% if the fund has a company as trustee. A client can have individual trustees of a fund or have a company as trustee of which they are the directors. The bank fees are deductible to the fund and are claimable over 5 years. Using Standard Bank Superannuation Loan Product.
  8. 8. FIXED RATES 2Year 5.34% 3 Year 5.64% Stantins Finance Broking Pty Ltd ABN 35 216 563 698 Rates quoted are for comparison/discussion purposes, they are typically what are available from our current lender panel. They are subject to change without notice. Stantins Finance Broking Pty Ltd Australian Credit Licence Number 390744 will provide a comparison rate schedule specific to your personal circumstances. Rates are current as at the 16th June 2014 SMSF VARIABLE RATES Attractive Rates @ 5.90%
  9. 9. The procedure and time frame is usually as follows: Obtain a loan preapproval . We can do this for you at no cost or obligation. It is as simple as completing one of our assets and liabilities forms. You are then in a position to determine if you can purchase a property and whether it is worthwhile establishing a fund. The fund and structure is setup. The ABN and TFN will issue within 14 days from the ATO. Once these have issued, a bank account for the fund can be opened. Also, once the ABN is received, you can then request a rollover of super from your existing superannuation fund into their self managed fund. Some funds can take 4 – 6 weeks to release the rollover cheque. The deposit can be paid by the fund at any time once the fund and borrowing structure has been established. Any deposit on the property can be reimbursed once your rollover funds have been received. It is advisable to make the deposit subject to finance. Even though your SMSF may be pre approved for finance, if there is an issue with valuation or you have not provided full disclosure in the initial pre approval, then finance could still fall through. The fund and borrowing structure must be in existence at the time the contract is signed and the deposit is paid.
  10. 10. Take out or replace your existing insurance with cover paid for by your SMSF. •Life Insurance •Total and Permanent Disablement Insurance (Any Occupation) •Income Protection Insurance* •Basic cover within an SMSF can be combined with cover owned by an individual to reduce the premium in the individual’s name and provide quality protection for the insured. •Only Insurance Services by referral are provided by Mario Cananzi Authorised Representative No 244704 of Professional Investment Services Pty Ltd AFSL 234951 ABN 11 074 608 558.
  11. 11. Disclaimer: We are estate agents only and do not have any qualifications as investment advisers. You should always discuss these matters with your financial advisor and/ or accountant before making any commitment.