Pre-retirees

Client: Pre retiree middle aged couple, owned small manufacturing business

Objective: Assist our client on the acquisition and structuring of a new business, the ongoing management of the company, the minimization of risk and the planning for exit and retirement

Our client was a minority shareholder in a medium size manufacturing business. We had for many years had acted as their personal accountants. The opportunity arose for him to sell his interest in the company and purchase the business of the company in which he had the minority interest.

We assisted in the negotiations and structured the acquisition in a company which employed himself as the managing director and his wife as the accountant and were able to do this with minimal tax consequences. Over the years, we prepared and presented quarterly management accounts. The company was quite successful and we became aware that substantial profits were accumulating in the company in the form of cash reserves. To protect this excess capital, we distributed substantial amounts to a separate non trading company where it has been invested under our advice.

We assessed their insurance needs and arranged life and permanent disability policies together with income protection.

We had also assisted them to maximise their superannuation contributions subject to the cashflow needs of the business and advised on the investment of those funds within the superannuation environment.

We have projected that the franked dividends from the retained profits of both companies totalling $40,000 together with tax free pensions from their superannuation benefits of $100,000 plus, will enable them to fund a very comfortable retirement without additional personal income tax payable on this income. Their personal wealth at age 95 will be in excess of $4m.

Services Supplied:

• Financial planning involved in creating and implementing an initial financial plan,
• Undertaking regular reviews and adjustments to that plan,
• Quarterly management accounting for business,
• Annual accounting and taxation services for business and for clients personally.

Speak to one of our team members to ensure you’re set up to get the best out of retirement on 1300 360 186.

This case study is not intended to imply advice to your own situation. Please speak to us to understand your financial needs, objectives and circumstances.