Our Advice To You

Prepared for

Taylor Swift and Travis Kelce
123 Blank Space Court
Melbourne VIC 3000

Date 28/10/2024

Prepared by

Patrick O'Keefe B Bus AdvDip (FP)
Financial Adviser
ASIC REGISTERED ADVISER Licence No 232514

Taylor and Travis, you sought our assistance for the following:

To set you up for retirement and ensure you are able to meet your goals to:

  • Retire at the end of financial year, and receive an ongoing income of $75,000 per annum lasting until 5 years past your life expectancy.

  • Renovate your home to the value of $20,000 within the next 12 months

  • Maintain a cash reserve for $10,000 in case of emergencies

  • Best utilise Parnter’s leave entitlements.

  • Pay off your debt before or at retirement

  • Make sure your retirement savings are invested in line with your risk and return preferences

  • Ensure your insurance is suitable for your stage of life

Other considerations

You have told us that you are happy with your current super fund and would like to stay with them. Because of this, we have not compared your fund with others in the market to determine if there is something out there that is better suited to your needs and preferences.

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Adjust your Personal Insurances

What to do

Why

Taylor

Retain your existing TAL Trauma cover

Cancel your existing TAL Life, TPD and Income Protection cover

  • By retaining your Trauma cover, you will have peace of mind knowing that in the event of a serious health issue, you will have access to a lump sum of up to $133,705 that will help pay your medical costs.
  • Cancelling your Life, TPD and Income Protection cover means you will no longer be paying approximately $4,000 per year for cover you do not need which will help increase funds available for your retirement

Travis

Retain, your existing AIA Trauma cover

Cancel your existing AIA Life and TPD cover

  • By retaining your Trauma cover, you will have peace of mind knowing that in the event of a serious health issue, you will have access to a lump sum of up to $140,000 that will help pay your medical costs.
  • Cancelling your Life and TPD cover means you will no longer be paying approximately $2,000 per year for cover you do not need which will help increase funds available for your retirement
3 / 18

Adjust your Superannuation

What to do

Why

Taylor

Switch the investment options in your existing super account to the following:

  • 100% Conservative Balanced

Travis

Switch the investment options in your existing superand pension accounts to the following:

  • 100% Conservative Balanced
4 / 18

Adjust your Super contributions

What to do

Why

Taylor

Immediately cancel your existing salary sacrifice arrangement of $650 per fortnight

  • You will ensure you do not breach the concessional contribution cap for the current financial year, which would be likely when considering the recommended lump sum contribution

Prior to the end of the financial year (June 30) make a tax-deductible lump sum contribution of $2,400 to your Hostplus super account

  • You will reduce the amount of tax that you pay on your salary and unused leave payout at your retirement as well as boost your retirement savings 
5 / 18

Type of tax

Current

Proposed

Income tax

$13,347

$12,483

Contributions tax

$3,692

$4,052

Total tax payable

$17,039

$16,535

Tax saving

$504

Commence your retirement income

What to do

Why

Taylor

Commence new AustralianSuper Choice income account  at retirement using $250,000 of your existing super account with the following investment options:

  • 100% Conservative Balanced

Initially draw a fortnightly pension payment of $2,362, reducing to $1,780 in February 2025 when Travis starts receiving a higher Age pension amount

  • In combination with Partner’s income, this account-based pension is estimated to be sufficient to your retirement expenses.
  • The income and investment earnings on the account-based pension are tax-free, meaning greater returns when compared with leaving these funds in your existing super account.
  • Your pension will continue to reflect your conservative/aggressive approach to investing
  • Although the investment earnings on the retained super account will be taxed, you will increase the amount of Age Pension your partner receives (due to the remaining super not being assessed by Centrelink until you turn 67
6 / 18

Transition to a retirement income

What to do

Why

Travis

Elect to take your unused leave entitlements as a salary instead of a lump sum 

  • Taking your leave entitlements as a salary will mean you continue to have a steady income as well as receive super contributions on this amount

Once you have officially retired and your final employer super contribution has been made, commence a new Hostplus Pension account using the full amount of your existing super and pension accounts with the following investment options:

  • 100% Conservative Balanced
  • Draw a fortnightly pension payment of $374
  • In combination with Client’s income, this account-based pension is estimated to be sufficient to your retirement expenses.
  • The income and investment earnings on the account-based pension are tax-free, meaning greater returns when compared with leaving these funds in your existing super account.
  • Your pension will continue to reflect your conservative/aggressive approach to investing

Apply for the Centrelink Age Pension

  • We estimate you will receive approximately $373 per fortnight
  • Receiving the Age Pension will mean you are required to draw less from your account-based pension which will allow these funds to last longer

Taylor

Withdraw $313,000 from your remaining Super account and use these funds to:

  • Pay off your remaining debts ($265,000)
  • Pay for your home renovations ($20,000)
  • Make a lump sum contribution to super ($28,000)
  • You will be debt free in retirement and have peace of mind knowing that your remaining savings can be used to fund your retirement
  • You will no longer be paying interest on this amount
  • You will retain your desired levels of cash savings
7 / 18

Cashflow

Once you retire and apply for the Age Pension you will meet your living expenses as show in this table:

Description

Taylor

Travis

Combined

Gross income

Account based pension

$46,280

$9,722

$56,002

Age Pension

$0

$19,035

$19,035

Total Gross income

$46,280

$28,757

$75,037

Less Income tax and expenses

Income tax and Medicare levy

$0

$0

$0

Total Income tax and expenses

$0

$0

$0

Equals Net Income

$46,280

$28,757

$75,037

Less Living expenses*

$75,000

Equals Net cash flow

$37

Description

Taylor

Travis

Combined

Gross income

Account based pension

$XX,XXX

$X,XXX

$XX,XXX

Age Pension

$0

$19,035

$19,035

Total Gross income

$46,280

$28,757

$75,037

Less Income tax and expenses

Income tax and Medicare levy

$0

$0

$0

Total Income tax and expenses

$0

$0

$0

Equals Net Income

$46,280

$28,757

$75,037

Less Living expenses*

$75,000

Equals Net cash flow

$37

Description

Taylor

Travis

Combined

Gross income

Account based pension

$YY,YYY

$Y,YYY

$YY,YYY

Age Pension

$0

$19,035

$19,035

Total Gross income

$46,280

$28,757

$75,037

Less Income tax and expenses

Income tax and Medicare levy

$0

$0

$0

Total Income tax and expenses

$0

$0

$0

Equals Net Income

$46,280

$28,757

$75,037

Less Living expenses*

$75,000

Equals Net cash flow

$37

Description

Taylor

Travis

Combined

Gross income

Account based pension

$ZZ,ZZZ

$Z,ZZZ

$ZZ,ZZZ

Age Pension

$0

$19,035

$19,035

Total Gross income

$46,280

$28,757

$75,037

Less Income tax and expenses

Income tax and Medicare levy

$0

$0

$0

Total Income tax and expenses

$0

$0

$0

Equals Net Income

$46,280

$28,757

$75,037

Less Living expenses*

$75,000

Equals Net cash flow

$37

8 / 18

Cashflow and tax

As a result of salary sacrificing $150 per fortnight we estimate your take home pay will reduce by $4,000 per annum (f/n, m), as shown in this table:

Description

Current

Proposed

Proposed

Gross income

Account based pension

$46,280

$9,722

$56,002

Age Pension

$0

$19,035

$19,035

Total Gross income

$46,280

$28,757

$75,037

Less Income tax and expenses

Income tax and Medicare levy

$0

$0

$0

Total Income tax and expenses

$0

$0

$0

Equals Net Income

$46,280

$28,757

$75,037

Less Living expenses*

$75,000

Equals Net cash flow

$37

Description

Current

Proposed

Proposed

Gross income

Account based pension

$XX,XXX

$X,XXX

$XX,XXX

Age Pension

$0

$19,035

$19,035

Total Gross income

$46,280

$28,757

$75,037

Less Income tax and expenses

Income tax and Medicare levy

$0

$0

$0

Total Income tax and expenses

$0

$0

$0

Equals Net Income

$46,280

$28,757

$75,037

Less Living expenses*

$75,000

Equals Net cash flow

$37

Description

Current

Proposed

Proposed

Gross income

Account based pension

$YY,YYY

$Y,YYY

$YY,YYY

Age Pension

$0

$19,035

$19,035

Total Gross income

$46,280

$28,757

$75,037

Less Income tax and expenses

Income tax and Medicare levy

$0

$0

$0

Total Income tax and expenses

$0

$0

$0

Equals Net Income

$46,280

$28,757

$75,037

Less Living expenses*

$75,000

Equals Net cash flow

$37

Description

Current

Proposed

Proposed

Gross income

Account based pension

$ZZ,ZZZ

$Z,ZZZ

$ZZ,ZZZ

Age Pension

$0

$19,035

$19,035

Total Gross income

$46,280

$28,757

$75,037

Less Income tax and expenses

Income tax and Medicare levy

$0

$0

$0

Total Income tax and expenses

$0

$0

$0

Equals Net Income

$46,280

$28,757

$75,037

Less Living expenses*

$75,000

Equals Net cash flow

$37

9 / 18

Type of tax

Current

Proposed

Income tax

$31,442

$22,482

Contributions tax

$243

$4,443

Total tax payable

$31,686

$26,926

Tax saving

$4,760

Review your estate plan

What to do

Why

Engage an estate planning specialist to:

  • Update your will
  • Appoint a Power of Attorney
  • Put in place an Advanced Care Directive
  • Having an up-to-date estate plan provides peace of mind knowing your affairs are in order in the event of you death or incapacity

Make a binding death nomination on your existing super and pension accounts

  • To ensure your funds are paid to the people of your choice in the event of your death

Make reversionary death nominations on your new account-based pension accounts

  • To ensure your funds are paid to the people of your choice in the event of your death
10 / 18

Cashflow and tax

As a result of salary sacrificing $150 per fortnight we estimate your take home pay will reduce by $4,000 per annum (f/n, m), as shown in this table:

Description

Current

Proposed

Proposed

Gross income

Account based pension

$46,280

$9,722

$56,002

Age Pension

$0

$19,035

$19,035

Total Gross income

$46,280

$28,757

$75,037

Less Income tax and expenses

Income tax and Medicare levy

$0

$0

$0

Total Income tax and expenses

$0

$0

$0

Equals Net Income

$46,280

$28,757

$75,037

Less Living expenses*

$75,000

Equals Net cash flow

$37

Description

Current

Proposed

Proposed

Gross income

Account based pension

$XX,XXX

$X,XXX

$XX,XXX

Age Pension

$0

$19,035

$19,035

Total Gross income

$46,280

$28,757

$75,037

Less Income tax and expenses

Income tax and Medicare levy

$0

$0

$0

Total Income tax and expenses

$0

$0

$0

Equals Net Income

$46,280

$28,757

$75,037

Less Living expenses*

$75,000

Equals Net cash flow

$37

Description

Current

Proposed

Proposed

Gross income

Account based pension

$YY,YYY

$Y,YYY

$YY,YYY

Age Pension

$0

$19,035

$19,035

Total Gross income

$46,280

$28,757

$75,037

Less Income tax and expenses

Income tax and Medicare levy

$0

$0

$0

Total Income tax and expenses

$0

$0

$0

Equals Net Income

$46,280

$28,757

$75,037

Less Living expenses*

$75,000

Equals Net cash flow

$37

Description

Current

Proposed

Proposed

Gross income

Account based pension

$ZZ,ZZZ

$Z,ZZZ

$ZZ,ZZZ

Age Pension

$0

$19,035

$19,035

Total Gross income

$46,280

$28,757

$75,037

Less Income tax and expenses

Income tax and Medicare levy

$0

$0

$0

Total Income tax and expenses

$0

$0

$0

Equals Net Income

$46,280

$28,757

$75,037

Less Living expenses*

$75,000

Equals Net cash flow

$37

Your Retirement

You are on track to meet your retirement goals. Well done!
11 / 18
12 / 18

What product fees will you pay?

As a result of switching investment options & investing more in super your fees will change as shown in the table below

Existing Plans

Proposed Plans

Product Name

AustralianSuper Divisions (Personal Plan)

AustralianSuper Choice Income

Account Balance

$179,289.00

$180,289.00

Total Account Balance

$179,289.00

$180,289.00

Total Ongoing Fees

$1,206.62

$1,201.35

Product
Taylor
Product
Type
Premium (pa)*
Upfront Commision
%pa
%pa
Upfront Commision
%pa
%pa
TAL
Trauma
4,235.28
0%
$0
0%
$0
Totals
N/A
0.00
N/A
N/A
N/A
N/A
Totals
N/A
$4,235.28
N/A
$0
N/A
$0
Owner:
Travis
Product
Type
Premium (pa)*
Upfront Commision
%pa
%pa
Upfront Commision
%pa
%pa
AIA Australia
Trauma
535.33
0%
$0
0%
$0
Totals
N/A
0.00
N/A
N/A
N/A
N/A
Totals
N/A
$535.33
N/A
$0
N/A
$0
13 / 18

Well done on seeking help on taking control of your retirement, to get the benefit of this advice it’s important you take the following steps.

14 / 18

Congratulations! You have finished implementing your advice

Well done! You have successfully implemented your advice on Australian super and pension. Remember to schedule a follow-up consultation to review your progress and adjust your strategy as needed.

When to come back...

What

Why

How

Your income or expenses changes significantly

To ensure your salary sacrifice is still fit for you

Your attitude to risk & return changes

To confirm your investment mix is still appropriate

18 / 18