Dear Tutors,

I am doing on my Financial Planning's assignment, could you please help me out some points about the assignment?

• What is the tables of financial position? Does it include the balance sheet and cash flow statement?
• What is the potential wealth creation, wealth protection and lifestyle strategies?
• What types of questions that the clients need ask prior to completing the SOA?
• What does it mean by the 9.5% Super Guarantee?
• What does it mean by the 17.75% of the credit card balance?

I would truly appreciate your help.

Best regards,

Josie

Part 1 However, with the shares and the property, they are wondering if they are burdening The assignment is based on material covered in weeks 2 to 9, however will involve themselves unnecessarily. They find it all confusing, time consuming and seemingly not very reviewing course materials for week 10 and 12. You will be required to complete a detailed rewarding. On top of it all, they have to pay their accountant $1,800 a year to sort it all out. file note (1500 words) as preparation for development of a client's financial plan (Statement On the whole, they feel they earn a lot of money and never have an extra dollar to their name. of Advice). Kristin and Tommy 'exasperated'. And the expenses! Students are provided with a transcript summary from an initial meeting between a financial Aside from paying the deductible expenses, they find they are spending a lot of money, and planner and new clients. Based on this transcript, students will be required: their credit card balance seems to get bigger each month. to provide an overview of the client's circumstances (including their current situation Their mortgage balance on their on their home is $235,000, they have thought of refinancing. and goals, tables of financial position) and provide potential wealth creation, wealth protection (insurance) and lifestyle strategies that address these circumstances and When asked to itemise their expenses, they provided the following calculations: goals, (9 marks) to provide a list of assumptions you are making; and (3 marks) Food and petrol 36,000 prepare a list of questions for the clients where further information may be required Mortgage 32,400 prior to completing the SoA. Scale document down (3 marks) Summary of transcript Other living expenses 32,000 Date to use for initial contact: I August 2019 Home, car and property insurance 2,000 Kristin and Tommy Lindsley School fees 18,000 Kristin and Tommy realise that they are not getting anywhere financially. They have decided Holidays it is time to bite the bullet and get their finances in order. They believe that a first glance, 15,000 their finances seem good, but there are a number of issues that need to be resolved. Credit cards 22,550 Kristin earns $83,000 p.a. Her employer contributes the 9.5% Super Guarantee. She has not been contributing herself and at age 41, her balance is around $125,000 - she is aware that this is not a good outcome. .They estimate their credit card balance is around $55,000 at approximately 17.75% Tommy, age 45, earns $120,000, and like Kristin he has not been putting any extra into his As for personal insurance, neither have income protection or trauma cover. Kristin has super. His current balance is $156,000. They would like to retire when Kristin turns 60 and $34,000 in life and TPD in her super and Tommy has $64,000 life and TPD. Kristin cannot believe they will need $49,000 in today's dollars to live on. get higher cover in her fund as the cover is standard. Tommy can purchase up to three (3) times his salary. They are concerned about their budget if personal insurance is needed. They have an emergency savings account of $25,000 earning 0.5%. They also have a share portfolio currently worth $250,000 and $150,000 as a margin loan. The interest rate is 8% and the portfolio earns 3.0%. They are uncertain about this investment and see the interest payments eating up all of the earnings. It is also of concern how to fund university costs for their children Matilda who is 10 and James who is 8. Several years ago, they inherited a rental property valued at $450,000. It is now worth around $570,000 but is only returning 4% - which after associated fees and charges ($4,280 per year) is actually lower. They are not that happy with the property but would hold onto it if it was financially suitable