Can You REALLY Gain an EXTRA $1.5 Million in Retirement Wealth?

In this episode of Talk Property To Me, I, Brad East, am joined by Cameron Smith from Waterford Financial Planners to discuss a compelling case study on how to significantly boost your retirement savings through strategic financial planning. We dive into the details of how a couple, currently aged 48, can potentially retire with an additional $1.5 million by making informed decisions about their superannuation.

We start by examining the couple's current financial situation, which includes a combined super balance of just over $650,000 and a principal residence valued at $1.5 million. The discussion centres around two primary options: leaving their super in a traditional industry fund versus establishing a self-managed super fund (SMSF). Cameron explains the setup process for an SMSF, highlighting the initial costs and the long-term benefits that can outweigh these expenses.

Throughout the episode, we emphasize the importance of understanding the potential growth of investments. Using conservative projections, we illustrate how the couple could see their super balance grow to approximately $3.5 million if they remain in an industry fund. In contrast, by setting up an SMSF and investing in property and shares, they could see their total net assets soar to around $5.1 million by the time they reach 65.

We also discuss the mechanics of self-managed super funds, including the limited recourse borrowing arrangement (LRBA) that protects the fund's other assets in case of default on the property loan. Cameron provides insights into the types of contributions that can be made to the SMSF, including employer contributions and concessional contributions, and how these can be leveraged to maximize retirement savings.

Additionally, we touch on the importance of compliance and the regulations surrounding SMSFs, including what cannot be done with the fund, such as using it for personal expenses or renting to related parties. Cameron shares valuable tips for business owners on how they can utilize their SMSF to purchase commercial properties and lease them back to their businesses.

As we wrap up the episode, we reinforce the message that taking action now can lead to substantial financial benefits in the future. The compounding growth of investments over time is a critical factor in building wealth for retirement, and we encourage listeners to consider their options carefully.

For anyone interested in learning more about self-managed super funds or financial planning strategies, I invite you to reach out to Cameron Smith at Waterford Financial Planners. His contact details will be available in the show notes.

Thank you for tuning in, and as always, if you have topics you'd like us to cover in future episodes, feel free to share your suggestions!

• 00:00:00 - Introduction to Retirement Planning
• 00:01:00 - Self-Managed Super Funds Explained
• 00:02:30 - Cost vs. Benefit of SMSFs
• 00:03:30 - Minimum Requirements for SMSFs
• 00:04:30 - Member Balances and Splitting Super
• 00:05:30 - Case Study Overview
• 00:06:00 - Industry Fund vs. SMSF Comparison
• 00:08:00 - Growth Projections for SMSF
• 00:09:00 - No Additional Contributions Needed
• 00:10:00 - Lending Perspective on SMSFs
• 00:11:00 - Types of Contributions to Super
• 00:12:00 - Using Unused Contribution Caps
• 00:13:00 - Accessing Funds and Compliance
• 00:14:00 - Restrictions on SMSF Usage
• 00:15:00 - Commercial Property Strategies
• 00:16:00 - Conclusion and Key Takeaways

ABOUT THE HOSTS

BRAD EAST

Brad East is the Managing Director of Wisebuy Home Loans. Brad is an award-winning mortgage broker and has helped thousands of clients gain finance to purchase properties. Wisebuy Home Loans is the go-to mortgage brokerage for clients wanting out-of-the-box applications approved.

Website → https://wisebuygroup.com.au 

LinkedIn → https://www.linkedin.com/in/newcastlemortgagebroker/ 

Instagram → https://www.instagram.com/bradeast_mortgagebroker/ 

Facebook → https://www.facebook.com/bradeastofficial

AARON DOWNIE

Joining the podcast in 2024, Aaron Downie is a seasoned property investor and director of Mackenzie Buyers Agency. Aaron’s deep understanding of the property market and investment strategies provides listeners with invaluable insights.

Website: https://www.mackenziepropertygroup.com.au/

Linkedin: https://www.linkedin.com/in/aaron-downie-1b2749134/