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Coolum Beach

We are known for helping pre-retirees and retirees with $500k+ in liquid assets achieve their retirement goals, are you someone who fits into these categories?

  • Are you retiring from a corporate job and wondering what to do with your superannuation?
  • Are you selling a business and transitioning into retirement, looking into how to invest the proceeds from the sale?
  • Are you considering divesting your property portfolio and figuring out the best way to create a retirement income?
  • Have you received a redundancy payment?
  • Have you inherited a sum of money?
  • Have you won a lottery prize?
  • Have you relocated to the Sunshine Coast after selling property or investments?

Here are some examples of how we’ve helped clients with their financial planning goals across the Sunshine Coast.  All of these are real life customers of Mike Beal Financial Planning – although we’ve changed their names for privacy:

Case Study 1:

Graham and Jane, a couple in their early 60s residing in Twin Waters on the Sunshine Coast, took strategic steps to minimise taxes for future generations while securing a tax-free income-stream. Graham had dedicated almost four decades of his career to a large multinational company, accumulating nearly $2 million in superannuation. To achieve these goals, we implemented the following strategies for Graham:

  1. We identified that Graham's existing employer superannuation fund had a high fee structure and underperformed compared to its peers. Consequently, we facilitated the transfer of his funds to a low-cost superannuation provider and directed investments towards a portfolio that offered higher returns and lower risk.
  2. Graham's superannuation consisted mostly of taxable components, which would have resulted in a substantial tax burden for his adult children upon Graham and Jane's demise. To mitigate this, we implemented a 'recontribution' strategy, significantly reducing the tax liability for Graham and Jane's children.
  3. Recognising that Graham's wife had no superannuation savings, we took steps to establish a pension fund specifically for Jane. This move aimed to optimise tax-free income for both Graham and Jane.

As a result of these actions, Graham and Jane now enjoy a steady income stream that allows them to fully embrace retirement without concerns about their financial longevity. They take comfort in knowing that their money is being prudently managed, ensuring their peace of mind and a legacy of reduced tax burdens for future generations.

Mike Beal Financial Planning Case Study 1

Case Study 2:

Mike and Nel, a couple in their mid-50s residing in Moffatts Beach on the Sunshine Coast, faced redundancy from their IT jobs at a large bank. With substantial superannuation balances of nearly $1 million each and an additional $700,000 in cash from redundancy payments, they found themselves in a situation where they were unable to access their superannuation due to their preservation age, 60. Their primary goal was to secure a reliable ongoing income stream until they reached the age of 60. Moreover, they had no dependents. To address their needs, we implemented the following strategies:

  1. We carefully crafted a portfolio with significantly lower risk levels and a more favourable fee structure, ensuring the protection of their investments while maximising potential returns.
  2. Recognising their requirement for a sustainable income stream, we established an investment account that could provide them with regular cash flow until they become eligible to access their superannuation.

Thanks to these strategies, Mike and Nel were able to retire fully at a relatively young age, without the need to return to work. They now have ample time to pursue their passions and enjoy the activities they love, secure in the knowledge that their financial situation is well-managed.

Mike Beal Financial Planning Case Study 5

Case Study 3:

Paul and Bev, a couple in their early 60s residing in Maroochydore, took proactive steps that resulted in substantial savings. Paul, who had served as the CEO of a mining company, aimed to transition into retirement while securing a reliable income stream. Together, Paul and Bev had a combined total of $4 million invested in a Self Managed Super Fund (SMSF), with an additional $2 million in an investment trust. To optimise their financial situation, we implemented the following strategies:

  1. Recognising that the SMSF had significant exposure to individual stocks, we emphasised the importance of diversification. By reducing their reliance on single stocks, we aimed to decrease their vulnerability to market fluctuations and enhance long-term stability.
  2. To achieve greater diversification, lower volatility, and potentially higher returns, we recommended allocating a portion of their funds to low-cost Exchange Traded Funds (ETFs). This strategic shift allowed for increased ongoing income and improved investment performance.

As a result of these actions, Paul and Bev can rest assured that their assets are being effectively managed. They no longer bear the burden of personally overseeing their funds, enabling them to fully embrace and enjoy their retirement years.

Mike Beal Financial Planning Case Study 6

Case Study 4:

Brad and Petra, a couple in their early 70s residing in Mount Coolum, were ready to retire after a successful career in property investment. With a significant sum of $5 million in their Self Managed Super Fund (SMSF), they were unsure if their investments were appropriately allocated. To address their concerns and optimise their financial situation, we implemented the following strategies:

  1. We carefully structured their SMSF investments to maximise income, reduce volatility, and minimise tax obligations. By diversifying their portfolio and aligning it with their retirement goals, we aimed to ensure steady and reliable returns while minimising unnecessary risks.
  2. Recognizing the importance of proper estate planning, we worked closely with a solicitor to update all necessary documentation and requirements for Brad and Petra's children and grandchildren. This step aimed to secure their wealth and provide peace of mind for their future generations.

Thanks to our guidance and strategic implementation, Brad and Petra now enjoy worry-free management of their SMSF assets. They can confidently navigate their retirement journey, knowing that their investments are well-structured and optimised for their specific needs. Furthermore, their comprehensive estate planning ensures the seamless transition of their wealth to their loved ones, providing them with a sense of security and peace of mind.

Mike Beal Financial Planning Case Study 4

Case Study 5:

Bill and Deanna, a couple in their late 60s residing in Maroochydore, successfully sold a commercial property in Buderim, resulting in a net amount of over $2 million. Their decision to sell was driven by the challenges they faced in managing a portfolio of small properties, including tenant-related issues, repairs, and maintenance. To secure a stress-free retirement, we implemented the following strategies:

  1. Leveraging the available superannuation caps, we maximise the amount they could contribute to their superannuation fund. This strategic move allowed them to draw down a tax-free income stream, optimising their retirement savings and providing a reliable source of ongoing income.
  2. To address the funds that exceeded the superannuation contribution caps, we established an investment account. This account was specifically designed to generate additional ongoing income payments for Bill and Deanna, further bolstering their financial stability in retirement.

As a result of these strategies, Bill and Deanna now enjoy worry-free retirement with steady and reliable ongoing income streams. The decision to sell the commercial property has proven to be advantageous, as they now experience a significantly higher level of income compared to what they could have achieved through property investments. This enables them to fully embrace their retirement years with financial peace of mind and a higher standard of living.

Mike Beal Financial Planning Case Study 3

Case Study 6:

Marianne and Jill, a couple in their mid-50s residing in Pelican Waters, utilised their inheritance and superannuation to create a virtually tax-free retirement income. Upon receiving an inheritance of $1.5 million, they found themselves unable to access their superannuation due to their age. To optimise their financial situation, we implemented the following strategies:

  1. We established specific investments designed to generate income during the five-year period before they could access their superannuation. These investments aimed to provide a steady cash flow to support their needs during this time.
  2. To maximise the benefits of a virtually tax-free environment, we allocated the majority of the funds to their superannuation accounts. By doing so, we aimed to leverage the tax advantages offered within the superannuation system, allowing their money to grow and generate income with minimal tax implications.
  3. Additionally, we established a regular ongoing income stream from their non-superannuation assets to sustain them until they become eligible to access their superannuation in five years.

As a result of these strategies, Marianne and Jill now enjoy their retirement by engaging in activities like playing golf and travelling. They benefit from an ongoing income stream that is virtually tax-free, providing them with financial stability and flexibility. With the knowledge that their investments are being prudently managed, they can have peace of mind and focus on enjoying their retirement years to the fullest.

Mike Beal Financial Planning Case Study 7

Case Study 7:

Ron and Rhonda, a couple in their mid-60s, successfully saved tens of thousands of dollars in tax through strategic financial planning. Ron was self-employed, while Rhonda worked for a corporate company. Their journey began when they purchased a rental property in Maroochydore shortly before the onset of the Covid pandemic. Upon selling the property, they anticipated a substantial capital gain and were prepared for the accompanying tax burden.

However, we guided Ron and Rhonda towards utilising carry forward concessional contributions to their superannuation accounts. By leveraging unused contributions from previous years, they were able to offset nearly all of their tax liability associated with the property sale. This strategic move not only significantly increased their superannuation savings but also resulted in substantial tax savings.

With their financial situation greatly improved, Ron and Rhonda expressed their desire to retire. To ensure a tax-efficient retirement, we established tax-free ongoing pension incomes for them. This step provided them with a sustainable and tax-efficient income stream, allowing them to live a happy retirement on the beautiful Sunshine Coast.

Ron and Rhonda now enjoy their retirement years, receiving a tax-free income and experiencing financial peace of mind. Their successful financial planning, supported by Mike Beal Financial Planning, has allowed them to live a fulfilling and worry-free retirement in the picturesque Sunshine Coast region.

Mike Beal Financial Planning Case Study 2

Case Study 8:

Choosing Between Property and Shares for Retirement Income: Insights from Mike Beal, Your Sunshine Coast Financial Advisor

As many individuals retire on the Sunshine Coast, the question of whether to retain property as a source of retirement income frequently arises. Let's consider a recent case: a single woman with a substantial salary. Despite having a portfolio of debt-free rental properties generating several hundred thousand dollars annually, she faced challenges. The rental income added to her taxable income, pushing her into the highest marginal tax rate, nearly 50%.

Additionally, the low gross yields of around 3% per annum on the properties, before factoring in expenses, resulted in an actual yield of less than 2%. Comparatively, as of December 2023, a diversified portfolio within the superannuation environment offered more favourable prospects. Bonds yielding approximately 6% per annum and Australian shares with a grossed-up dividend yield of around 6% per annum allowed for a yield nearly three times higher than the rental properties. Moreover, the tax burden within superannuation is capped at a maximum rate of 15%, significantly lower than the almost 50% for her outside of superannuation.

Also, consider the 'hassle factor' associated with managing a rental property – constant maintenance, tenant turnover, and paperwork. In contrast, shares and bonds within a diversified portfolio provide ongoing dividends or distributions without the associated hassles.

Upon reviewing our analysis, the client concurred, and we are now developing strategies for the tax-efficient sale of specific properties. Since the client will maximise superannuation contributions, we are exploring other tax-efficient investments with substantially lower tax rates than her current marginal tax rate.

Choosing Between Property And Shares For Retirement Income

Be sure to drop us a line if you’d like to discuss financial planning on the Sunshine Coast. Send us an email: mike@mikebealfp.com.au or give us a call: 0409 799 279.

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