Hello, I need help with a financial planning assignment for a subject called Planning for Long term wealth creation. I basically just need a paragraph for each of these situations: - Analysis of strengths and weaknesses of current position (situation)

- Reduction of Expenses (How to reduce the expenses)

Please find the Information for the problem in the attachment below.

Additional Information Students should work in groups of 4. There is no strict limit regarding the word count, but analyses, tables and graphs should total between 20-30 pages. You are not required to include analyses of insurance and estate planning other than the data already provided. You need to show and prove that your strategies will be of ultimate financial benefit to the couple you are working for. This will culminate at a final tabular comparison of projections for the status quo, with those projections that include all of your strategies. You are welcome to seek help, but please note that your lecturer will not correct or confirm any calculations prior to hardcopy submission at the end of semester. Feel free to make additional assumptions where needed, based on current data and market conditions. BACKGROUND Phil, a new client, has approached your financial planning practice seeking some advice. The practice's financial planner had a telephone conversation with Phil last week. The planner asks you to undertake a few tasks as part of the process of providing advice and recommendations for Phil and his wife. After speaking with Phil, the financial planner provides you with the following information concerning the couple's financial situation. 1. Personal situation Phil is aged 37 and his wife Jill is aged 36. Phil is a self-employed architect while Jill works 2-3 days a week as a solicitor. They have nothing to do with each other's work. They have 2 children, Tessa aged 11 and Matthew aged 10. The couple would like the children to attend a private school from age 14, which is expected to cost around $7,500 p.a. for each child. 2. Assets and liabilities consist of the following: Assets: Home (joint ownership) $900,000, contents (joint ownership) worth $80,000, 2 cars (one car in each name) worth approximately $60,000, savings account with Westpac Bank for $6,000 (in the name of Phil), shares (in the name of Phil) with a current market value of $70,000 (cost price of $90,000 acquired in May 2013), superannuation balances Phil $120,000, Jill $70,000. Phil acquired the shares 3 years ago on the advice of a friend. However, the shares have never done well and Phil has no interest in or time to follow the share market. The couple do not take an active interest in their investments. Liabilities: Eighteen year home mortgage of $590,000 with a variable interest rate of 6.5% p.a., monthly repayments of $4,712. Five year car loan of $15,000 with a variable interest rate of 7.6% p.a., monthly repayments of $310. Credit card average monthly balance of $6,000 (used to pay for living expenses). The couple are finding that a lot of their monthly income is going towards paying off their large amount of debt. They are worried that they have taken on too much debt and would like to reduce outstanding debt as fast as possible. 3. Cash income and expenses consist of the following: ($ p.a.) Income: - salary - net profit from business - bank interest - fully franked dividends (cash receipt) - unfranked dividends (cash receipt) Payments: Living expenses (excluding loans and interest charges) Mortgage and loan repayments Private health insurance Professional membership fees - Phil - Jill Travel expenses for work purposes: - Jill Tax preparation (split 50/50) Donations (split 50/50) Holidays and entertainment 40 000 130 000 120 2 250 400 40 000 60 264 3 200 700 800 400 2 000 1 500 10 000 The couple feel they pay an excessive amount of tax and are looking at ways of minimising tax payable as far as possible. 4. The couple's superannuation accounts consist of the following: Phil: (i) Australian Industry Super Fund - invested in the balanced option - includes death and TPD cover for $50 000 (ii) Self-managed superannuation fund - invested 50% in shares and 50% in cash - includes death and TPD cover for $50 000 Jill: (i) Invested with Australian Industry Super Fund - invested in the balanced option (ii) Self-managed superannuation fund $20,000 $100,000 $60,000 $10,000 - invested 50% in shares and 50% in cash Other than detailed above, the couple have no other personal insurance cover. The couple's self-managed superannuation fund (SMSF) was established 4 years ago by their accountant. However, they have no real understanding of how the SMSF works or what the benefits are in contributing. Jill's current employer contributes her 9.5% SGC into the Australian Industry Super Fund. Phil contributes to his SMSF on an irregular basis when he remembers to contribute or his accountant happens to mention it before the end of the year. However, Phil has not taken an active interest in his superannuation affairs and has not contributed for the past 2 years. The asset break-up of the Australian Industry Super Fund balanced fund account is approximately as follows: Cash 5% Australian fixed interest 15% International fixed interest 5% Australian shares 35% International shares 23% Property 10% Alternative investments 7% The couple now feel that they need to take a more active interest in their wealth creation and retirement planning but are not sure how best to go about it. Their objective is to retire when Phil turns 58 so that they can travel around Australia. Accordingly, they have sought the advice of your financial planning practice. The financial planner had a brief telephone conversation with Phil at the start of April 2016 and the client emailed the above details. The financial planner has asked you to prepare some appropriate strategies for Phil that will assist in meeting his goals and needs