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.
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
Want to know more?
Watch the video on how on investment choice can impact your retirement
Adjust your Superannuation
What to do
Why
Taylor
Switch the investment options in your existing super account to the following:
- 100% Conservative Balanced
- You are not willing to accept the risk of more frequent or larger losses to attempt to achieve higher returns, even though it may result in a higher investment balance and higher income in retirement.
Travis
Switch the investment options in your existing superand pension accounts to the following:
- 100% Conservative Balanced
- You are not willing to accept the risk of more frequent or larger losses to attempt to achieve higher returns, even though it may result in a higher investment balance and higher income in retirement.
Want to know more?
Watch the video on how on investment choice can impact your retirement
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
Want to know more?
Watch the video on how an account-based pension can help you meet retirement goals
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
Want to know more?
Watch the video on how an account-based pension can help you meet retirement goals
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
Want to know more?
Watch the video on how an account-based pension can help you meet retirement goals
Pay off your debts and expenses
What to do
Why
Travis
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
Want to know more?
Watch the video on how on investment choice can impact your retirement
Contribute to super
What to do
Why
Taylor
In July 2025 make a tax-deductible lump sum contribution of $28,000 to your remaining Hostplus super account
- You will reduce the amount of tax that you pay on your salary and unused leave payout at your retirement
- You will boost your retirement savings
Want to know more?
Watch the video on how superannuation can help you meet retirement goals
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
Want to know more?
Watch the video on how why estate planning is important for you’
Your Retirement
Client and Partner, based on our calculations, you are on track to support your retirement income goals, plus your lump sum expenses, up until 5 years beyond your life expectancy.
Find out more by watching the video
What will it cost?
How investment fees can impact your final retirement balance
Advice fee
$2,675
Implementation fee
$440
Total advice costs
$3,115
Any further advice may incur additional fees.
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
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.
Implementing your advice: Taylor
What
When
Who
How
Checklist
Immediately
Talor
Immediately
Taylor
Immediately
Taylor
Upon Retirement (July 2024)
Taylor & Adviser
Upon Retirement (July 2024)
Taylor & Adviser
July 2024
Taylor
Immediately
Taylor
Immediately
Taylor
Implementing your advice: Travis
What
When
Who
How
Checklist
Immediately
Travis
Immediately
Travis
Immediately
Travis
Immediately
Travis
Immediately
Travis
June 2024
Travis
Immediately after contribution is made
Travis
July 2024
Travis
4 weeks prior to your leave entitlements finish (September 2024)
Travis
Once leave entitlements have finished
Travis
When completing 2024/25 tax return
Travis
Implementing your advice: Client and Partner
What
When
Who
How
Checklist
Once Client has withdrawn funds from Super (July 2024)
Taylor & Travis
At your earliest convenience
Taylor & Travis
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