Financial advice case studies - BUSSQ

Financial advice case studies

If you were to seek financial planning advice from BUSSQ, the following examples will help you understand how our fees for financial planning services might affect you

How might our financial planning advice fees affect you?

Straightforward Advice at no extra cost

Cast study 1

Kevin, age 50

At age 50, Kevin decides he needs to start building his superannuation in order to retire one day - so he contacted BUSSQ for financial planning advice from our superannuation specialists.  After talking with a BUSSQ financial planner, it was established that Kevin could implement a superannuation contribution strategy, and it was recommended that he commence salary sacrificing. This way he could increase his super fund contributions but still live comfortably on his remaining take home pay. 

Direct cost of financial planning advice to Kevin: Nil, as it comes under the category of IntraFund, or Straightforward Advice.

Case Study 2

Bill, age 32

Bill has a young family and a mortgage. He wants to put things in place to ensure that, if the unthinkable happens, his family doesn’t have to worry about finances. He currently has the standard level of life insurance within his BUSSQ super fund account.

After discussion, a BUSSQ Financial Planner established that he should increase his insurance cover to protect Bill and his family. He increased the level of cover for Death Insurance, Total and Permanent Disablement Insurance and Income Protection Insurance. He is now in a better financial position should the worst scenario happen, and feels happy that his family's future is secure.

Direct cost of financial planning advice to Bill: Nil, as it comes under the category of IntraFund, or Straightforward Advice.

Complex advice charged at an hourly fee

Case study 3

Bob and Betty, both age 60

Bob works full time and Betty part time. Bob has a BUSSQ industry super fund account and Betty currently has two superannuation fund accounts, one with BUSSQ and one with another super fund. They are both hoping to retire in five years. 
After an initial discussion with a BUSSQ Financial Planner - which was free of charge - Bob and Betty had a follow up meeting where it was recommended that Bob should:

  • Commence a BUSSQ Transition to Retirement Pension (TTR),
  • Commence salary sacrificing into his BUSSQ Premium Choice Super Fund account.

This would allow him to contribute an extra $3,000 per year into super after tax, but he could maintain his current take home pay.
The BUSSQ Financial Planner also recommended that Betty roll her other super account into her BUSSQ Premium Choice Super account and make voluntary contributions into that account with her surplus cash flow.

This type of advice is not covered under the IntraFund advice category, and comes under Complex Advice.

As a result, there is a cost to Bob and Betty to provide them this financial advice, and help them to implement our recommendations to ensure they are on track to meet their retirement goals. They received a Statement of Advice covering our recommendations, and how they would be better off having taken our advice.

Direct cost of financial planning advice to Bob and Betty: This complex financial advice was charged at $150 per hour and came to $450 in total. They have the option of deducting the respective cost from their BUSSQ super fund accounts.

Case Study 4

Alfred, age 40

Alfred has been a BUSSQ industry super fund member for some time, but along the way has also found himself with two other super funds. He wants to tidy things up and make life easier.

One of these funds is a retail super fund with a large bank, while the other is another industry superannuation fund.

We researched the running costs, returns, fees and options with these two super funds, which uncovered that Alfred was paying more than double the amount of fees on his retail superannuation fund than he was in his BUSSQ industry super fund account. This amounted to over $1,000 per year on his current balance. We also found that, when comparing similar options across both super funds, the performance of the BUSSQ super fund was greater than that of his retail super fund. (Of course, we made him aware that past performance may not reflect future performance.) With his other industry superannuation fund, the running cost was similar to that in BUSSQ, so there was no significant benefit in rolling this super over to his BUSSQ super fund. However, Alfred wants to make life easier, and stated his preference to consolidate his superannuation into the one account. 

We recommended that Alfred roll his other two super funds into his BUSSQ industry super fund account in order to reduce the costs on his superannuation and also make things easier in keeping track of his finances.

This type of financial planning advice is not covered under the IntraFund advice category and comes under our Complex Advice area, As a result, there is a cost to Alfred for us to provide him this financial planning advice and to help him implement our recommendations to ensure he gets his superannuation sorted. He received a Statement of Advice covering our recommendations, and how he would be better off having taken our financial advice.

Direct cost of financial planning advice to Alfred: $375 in, which Alfred chose to take out of his BUSSQ super fund account.

To speak to a Financial Planner or to make an appointment for financial planning advice, fill in an online enquiry or call us on 1800 MY BUSSQ (1800 692 877).

See Financial advice we offer for more information.

*BUSSQ offers members personal limited financial advice about their super including: choosing insurance, choosing investments and contributions, at no extra cost as it is included in the fund’s administration fees. This advice is offered over the phone. BUSSQ also offers members and non-members more complex financial advice on a fee for service basis. This advice can be done in person or over the phone. Our fee for complex advice is very competitively priced at $150 per hour which includes GST. The cost is very low and structured purely for cost recovery. It is expected that most complex advice will cost between $300 and $750, depending on the complexity and time required by the financial planners. Non BUSSQ members who receive advice will need to be billed for the advice separately.