How can I… establish a regular investment plan outside of super?

Case-study_Invest-outside-of-super
Daisy Jones1:

  • 41 years old
  • Accumulation 2 member
  • Looking to commence a non-superannuation regular savings plan

Daisy was recently promoted to a senior management role at a university.2,3

She is very pleased that her new salary of $145,000 will enable her to start putting money aside to fund the education of her two-year-old twins.

A few weeks ago she contacted UniSuper Advice. During her scheduled phone call the Super Adviser determined that Daisy’s situation was quite straightforward: she was only seeking advice on regular savings outside of superannuation.

Daisy discussed her goals in detail with her adviser as well as:

  • Her initial investment amount
  • Frequency and amount of ongoing contributions
  • Daisy’s current cost of living and income requirements
  • An investment strategy for her portfolio 
  • The level of risk associated with the portfolio and Daisy’s risk profile
  • Any ongoing fees associated with the portfolio

Daisy was happy to pay $710 from her credit card for advice about starting a regular savings plan through a non-superannuation investment portfolio. Daisy had heard that some advice could be paid for via her super however, the adviser explained that since this advice was not related to super the fees could not be deducted from her super account.

A week later, Daisy met with her adviser at the university campus where she presented her with a written Statement of Advice, explained the details, and encouraged Daisy to ask questions to ensure she understood the recommendations. The Super Adviser also outlined the inherent risks relating to the investment account and explained the projections listed in the Statement of Advice. These included:

  • Initial investment of $5,000
  • Regular investment of $800 per month
  • Projected performance per annum: 5%4
  • Projected amount after 10 years: $132,4605

Her adviser helped Daisy to complete the application forms for the investment account and arranged the account set up, giving Daisy timely updates on the status of her application.

Daisy felt confident knowing that she is building wealth outside of superannuation to help with her children’s education.

Could a UniSuper financial adviser help you? Get in touch to find out.

1. Daisy is a hypothetical member. 2. All outcomes in this case study are based on the specific factual circumstances detailed in this scenario and the assumptions detailed. The outcomes are not guaranteed and will vary depending on your specific circumstances and assumptions made. 3. This case study is based on legislation applicable in the 2018-19 financial year. 4. Historical performance commensurate with her Moderate risk profile. 5. Figures are represented in today’s dollars and these are estimates only based on the assumptions stated and are not guaranteed. Also there are no other contributions or withdrawals taken into account.

The information contained in this case study is not legal, taxation or accounting advice. It is intended to provide general information only. It has been prepared without taking into account your objectives, financial situation or personal needs. Prior to making any investment decisions, you should speak with a financial adviser to consider whether this information is appropriate for your needs, objectives and circumstances. You should also obtain a copy of the relevant product disclosure statement (PDS) prior to making a decision regarding any investment in any financial product. Whilst care has been taken in the preparation of this information, the accuracy or completeness of the information is not guaranteed. This case study was prepared and issued by UniSuper Management Pty Ltd ABN 91 006 961 799, AFSL No: 235907, which is also the administrator of, and wholly owned by, the UniSuper Superannuation fund (ABN 91 385 943 850). UniSuper Limited (ABN 54 006 027 121) is the trustee of the fund. UniSuper Advice is operated by UniSuper Management Pty Ltd, which is licensed to provide financial product advice to members.