Liz and Shane were planning to retire within two years. Their immediate need was to find out the most effective way to transfer their business premises into their self-managed super fund (SMSF), without breaching their contribution caps. But they also had a complex portfolio of assets, including a company, an SMSF and two business premises with different ownership arrangements.
We recommended that Liz and Shane make a $150,000 after-tax contribution into their SMSF in that current financial year, providing extra cash for the fund. They were then able to use their combined non-concessional contribution caps in the next financial year to transfer the bulk of the property into the fund. Meanwhile the fund could use its extra liquidity to buy the remainder of the property.
With their immediate issue solved, we helped Liz and Shane develop clear financial and lifestyle goals, then created a plan designed to achieve them.
Liz and Shane could transition to retirement knowing that they could enjoy their lifestyle and focus on finding a buyer for their business.
This is a hypothetical example based on a real client experience. Names and details have been changed.