As a Financial Advisor, script for an initial Client Interview, to assist the discussion of each of the following:

$$ Client$$s Investment Needs

o Type of client

o Client risk profiling and goals setting

o Time horizon

o Risk tolerance

o Income needs

o Liquidity needs

o Tax considerations

$$ Suitability of Investment Instruments

$$ Downside risks

Use the below Client Information to complete the above discussion points.

$$ Name: Jamila Widodo

$$ Gender: Female

$$ Age: $33$

$$ Dependants: None yet but hopes to start a family with de$-$facto partner "sometime soon." $($Plans on having at least two children.$)$

$$ Marital status: De facto but is hoping to marry. Partner is an artist with irregular income.

$$ Homeowner status: Owner$-$occupier home worth $$1,450,000$ at the Gold Coast with outstanding mortgage of $$610,000$

$$ Working status: Works full$-$time as a Marketing Manager for a top$-$tier Australian Mining Company. Full time employee with the normal benefits including an employer superannuation contribution of $13\%.$

$$ Investment property: Value $-$ $$800,000$ with outstanding mortgage of $$450,000$

$$ Savings: $$220,000$

$$ Salary: $$205,000$ p$.$a$.$ plus bonus

$$ Objectives:

o Be a self$-$funded retiree and have a comfortable retirement.

o Provide seed capital for her sister's fledgling children's clothing business.

o Put the children she hopes to have, through university.

o Set up a bursary at her old University.

Income:

$1.$ Salary: $$205,000$ p$.$a$.$

$2.$ Bonuses: This can vary widely, but let$$s estimate a modest $10\%$ of her base salary: $$20,500$

$3.$ Investment Property Income: Assuming a rental yield of $3-5\%$ p$.$a$.$ for an $$800,000$ property: $$24,000-$ $$40,000$

$4.$ Partner$$s Income: Not specified, so we$$ll exclude this from calculations.

Total Estimated Income $($Gross$)$: $$205,000($Salary$)+$ $$20,500($Bonus$)+$ $ $24,000($Low$-$end Rental Income$)=$ $$249,500$ per annum

Expenses:

$1.$ Living Expenses:

A general rule is that living expenses can be around $30-40\%$ of gross income. For high earners, it can be less, but we$$ll estimate on the higher side due to potential higher living standards: $$70,000-$ $$100,000$ p$.$a$.$

$2.$ Mortgage Payments:

$$ Primary Residence: Estimated at a $30-$year term with a $3\%$ interest rate, monthly payments would be around $$2,575($$$30,900$ p$.$a$.).$

$$ Investment Property: Under similar terms, monthly payments would be around $ $1,898($$$22,776$ p$.$a$.).$

$3.$ Property Taxes and Insurance: Assuming around $1\mathrm{.}5\%$ of property value p$.$a$.$: $$33,750($Total for both properties$)$

$4.$ Health Insurance: Around $$3,000-$ $$5,000$ p$.$a$.$

$5.$ Car Payments: Assuming a car loan of $$30,000$ at $5\%$ over $5$ years: around $$5,680$ p$.$a$.$

$6.$ Savings and Investment Contributions: Let's estimate that she saves or invests $20\%$ of her income: $$49,900$ p$.$a$.$

Total Estimated Expenses: $$70,000($Living$)+$ $$30,900($Primary Residence Mortgage$)+$ $$22,776($Investment Mortgage$)+$ $$33,750($Property Taxes and Insurance$)+$ $$5,000($Health Insurance$)+$ $$5,680($Car Payments$)+$ $$49,900($Savings$/$Investments$)=$ $$217,006$ per annum

Assets:

$1.$ Primary Residence: $$1,450,000$

$2.$ Investment Property: $$800,000$

$3.$ Savings: $$220,000($Current savings, not adding annual savings contribution$)$

$4.$ Superannuation: Without knowing the balance, let's conservatively estimate $$200,000$ given her income and assuming several years of contributions.

$5.$ Personal Property: This can vary widely, but let$$s estimate $$50,000$ for a car and other personal items.

Total Estimated Assets: $$1,450,000+$ $$800,000+$ $$220,000+$ $$200,000+$ $$50,000=$ $$2,720,000$

Liabilities:

$1.$ Mortgage on Primary Residence: $$610,000$

$2.$ Mortgage on Investment Property: $$450,000$

$3.$ Car Loan: Assuming $$30,000$ as per the car payments estimation

Total Estimated Liabilities: $$610,000+$ $$450,000+$ $$30,000=$ $$1,090,000$

Net Worth $($Assets $-$ Liabilities$)$: $$2,720,000($Assets$)-$ $$1,090,000($Liabilities$)=$ $$1,630,000$