Luke is now 50 and has a balance of $315,000 plus his recent non-concessional contribution giving him a total balance of $495,000. He would like to take a bit more control of his super and after speaking to a financial advisor decides to set up his own SMSF. He currently has life insurance in his retail fund so his advisor recommends he keep a small balance in there to support any life insurance premiums or consider rolling the policy into the new SMSF. If he were to completely roll out of his retail fund his life insurance would be automatically cancelled.

Luke sets up his SMSF and chooses a corporate trustee. He also establishes his investment strategy which states how he will be investing his super balance which he will ensure he reviews every year. After setting up a bank account and ensuring all his documentation has been signed and dated Luke is ready to start investing.

Luke believes it is a good time to get into the property market and finds a commercial factory unit that he wishes to purchase for $400,000. He leaves the balance of the fund as cash to support any expenses as they arise as per his investment strategy. Over time the fund increases in value due to a healthy income received from the property and Luke begins to invest in direct shares and managed funds through his advisor. He always ensures he has enough cash to meet any expenses.

See the next case study regarding how automation can help Luke with his document management, administration costs and provide him with real time information regarding his SMSF.

This is general illustration only, and the results will differ depending on the investment returns achieved which cannot be guaranteed.

This information has been prepared without taking into account your objectives, financial situation or needs. Because of this, you should, before acting on this information, consider its appropriateness, having regard to your objectives, financial situation or needs.