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Case Studies

Reading about financial planning techniques and strategies is great and can provide you with some great insight as to what is available and how these methods work. However, to see it in action helps you to understand the advantages and effects these strategies can have in real life. Please click on the links below to see what significant impact, if done well, these techniques can have.

clik here Power Strategy #1 – The massive effect of return and fees in the long run
click here Power Strategy #2 – The power of gearing in the long run
click here Power Strategy #3 – The benefits of Salary Sacrifice
click here Power Strategy #4 – Self Managed Super Fund advantage
click here Power Strategy #5 – The Transition to Retirement opportunity
click here Power Strategy #6 – Are you paying unnecessary interest
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The massive effect of return and fees in the long run
 

Paul is 35 year old plumber and has $50,000 worth of inheritance that he would like to invest. He is looking at two options including retail index managed funds but has also talked to TGS Partners regarding their Direct Portfolio Service.

Scenario 1:
Retail All Ords Index managed fund – Paul, over the long term, based on historic figures, will get an average of around 12% return on his

investment. Further to this, he will pay around 3.5% entry fee, approximately 2% ongoing fee and a 2% exit fee for relying on a Fund Manager to do the research and make the decisions on buying and selling. Using these assumptions, after 20 years, Paul will have an investment of around $318,000.

Scenario 2:
Investing in the TGS Partners Wealth Management well accredited and successful Model Portfolio Service, Paul will enjoy an average return above the index of around 4%. He will also enjoy a low 1% flat administration fee for total funds invested plus a performance fee of 22% on any return above the investment....no entry or exit fees. With these advantages, Pauls 20 year investment is now worth around $701,000!

This highlights the significant effect that returns and fees have on an investment over an extended period and the need to have these returns and savings maximised at all times.

NB: These figures do not take into account any possible dividend reinvesting, franking credits or any tax implications.

click here Back to: Financial Planning / Power Strategy #1 – Direct Portfolio Service

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click here Next:Power Strategy #2 – The power of gearing in the long run