Prepare a Statement of Advice (SOA) for the Martins interviewed for Assignment 1. The case study information is attached as a picture at the bottom of the page.

As this assignment is to be a SOA for clients, it should be in a suitable format and use appropriate language and be presented in a complying format. Clarity and conciseness are important but full explanation and reasoning is required.

Your SOA should clearly show the planning and details you recommend for their situation, how they can achieve their goals and where the capital and income will be sourced. Your SOA should address a long-term plan to provide income and should include projections. Explain fully all Social Security issues. Please explain any assumptions made.

In addition to the four (4) questions shown in the client information case study page, the Martin's would also like you to answer the following questions which are concerning them:

The Martins have heard about the term – longevity risk – and would like this explained and does it apply to them? If so, how do they manage this risk in the years ahead?

How should they organise their investments to be as tax effective as possible

Will they be able to afford a new car and caravan for their ‘getaway’ trip whiich they forgot to tell you about?

Some further issues to consider in this Case Study include:

how a financial planner deals with the situation where the clients want to limit the scope of the advice sought

the disclosure requirements in respect of the provision of financial advice 

AFM302 Client Case Study information for Assignments 1 and 2 - T1 2017 Students may notice that this assignment is similar to Case Study 18.1 in the prescribed text book but please note some of the client detail and information has been changed. Pam and Peter Martin, both aged 65, have recently retired. In considering their retirement plans, the Martins have decided to do an audit on their current financial situation. On 1 July 2015, they both purchased lifetime annuities for $60,000 each. These provide a $6,000 pension each per annum. In addition, they held the following assets as at 1 July 2015: Home Joint $750,000 Mortgage on home Joint $100,000 Prepaid funeral Half each $50,000 Term deposit at 5% Joint $330,000 Managed fund Peter $80,000 Direct shares Joint $60,000 Rental property Joint $350,000 Motor vehicles Joint $40,000 Antiques Joint $50,000 Jewellery Pam $45,000 On 1 August 2015, the Martins decided to give $100,000 (i.e. $50,000 to each of their two children) to help them with the purchase of their first homes. Peter has decided to take a part-time job with his local art dealer and expects to earn $100 per week. The Martins have come to see you for advice on 3 August 2016. 1. Calculate the Martins' assessable assets for Centrelink. 2. Calculate the Martins' financial assets. 3. Calculate whether Pam and/or Peter would receive the Age Pension when they are eligible to apply. 4. Are there any other strategies that you can suggest to assist the Martins to maximise their pension entitlement? Students: For projections of super balances and retirement drawdowns, go to and link onto MoneySmart or go directly to . For details regarding the age pension, eligibility, rates, and a calculator, go to . (Note that Centerlink changed its name to Human Services .)