Harry and Meghan are in their early forties. They come to you seeking advice after the receipt of a lump sum inheritance from Harry's dad of $180,000 and they wish to invest the funds. He wants to invest the funds outside of superannuation in order to have access to the liquidity if required. With the additional funds he prepared to take on more risk in order. to try and generate a higher return. He would like to use $60,000 to build a swimming pool in around 4 years. Their situation is as follows: Harry earns $120,000 per year and Meghan works part time earning $52.000. They have disposable income of $10,000 per year after all expenses. The couple has two children under 18. Meghan is pregnant. They have no debts and their existing assets include cash of $40.000 held in their joint bank account and $55,000 in a term deposit. Harry has $110,000 in Super and Meghan has $130,000 both in the conservative option of their super fund. Address the following questions. (A) What would be the benefit of investing the inheritance in a portfolio of investments that are professional managed by SCU graduates such as managed funds, ETF. Listed Investment companies etc as opposed to Harry and Meghan Managing the money? (B) Given their risk profile of a balanced investor how would you construct a portfolio for Harry and Meghan and discuss how you would allocate funds across various asset classes. (C) What issues would you consider in determining which particular mange funds would be appropriate to invest in. They advise that they do not need any further income. (D) How would you explain any risks they face. (E) How would an investment in managed funds affect their tax position and should funds be invested in any particular persons name, or entity in order to minimise tax ? Explain. (F) If they wished to invest in Ethical Investments, which characteristics are typically associated with ethical investments. Harry and Meghan are in their early forties. They come to you seeking advice after the receipt of a lump sum inheritance from Harry's dad of $180,000 and they wish to invest the funds. He wants to invest the funds outside of superannuation in order to have access to the liquidity if required. With the additional funds he prepared to take on more risk in order. to try and generate a higher return. He would like to use $60,000 to build a swimming pool in around 4 years. Their situation is as follows: Harry earns $120,000 per year and Meghan works part time earning $52.000. They have disposable income of $10,000 per year after all expenses. The couple has two children under 18. Meghan is pregnant. They have no debts and their existing assets include cash of $40.000 held in their joint bank account and $55,000 in a term deposit. Harry has $110,000 in Super and Meghan has $130,000 both in the conservative option of their super fund. Address the following questions. (A) What would be the benefit of investing the inheritance in a portfolio of investments that are professional managed by SCU graduates such as managed funds, ETF. Listed Investment companies etc as opposed to Harry and Meghan Managing the money? (B) Given their risk profile of a balanced investor how would you construct a portfolio for Harry and Meghan and discuss how you would allocate funds across various asset classes. (C) What issues would you consider in determining which particular mange funds would be appropriate to invest in. They advise that they do not need any further income. (D) How would you explain any risks they face. (E) How would an investment in managed funds affect their tax position and should funds be invested in any particular persons name, or entity in order to minimise tax ? Explain. (F) If they wished to invest in Ethical Investments, which characteristics are typically associated with ethical investments
