Please provide an overview of the client's circumstances (including their current situation and goals, tables of financial position) and provide potential wealth creation, wealth protection (insurance) and lifestyle strategies that address these circumstances and goals.

Provide a list of assumptions you have made and prepare a list of questions you would ask the clients where further information is required.

Details Below:

Bella (41yo) earns $81,000 p.a. Her employer contributes 10.5% Super Guarantee, and she has not contributed towards super herself. Her balance is around $120,000. Jim (45yo) earns $125,000 and has also not contributed to his Super. His current balance is $157,000. The couple would like to retire when Bella turns 60 and believe they need $49,000 p.a in todays dollar to live on.

• They have an emergency savings of $24,000 earning 0.5%.
• They have a share portfolio worth $255,000 and $150,000 as a margin loan. The interest rate is 7.75% and the portfolio earns 3%. They are uncertain about this investment and the interest payments are eating up their earnings. They are also concerned how to fund university costs for their children in the future currently aged 10 and 8.
• Several years ago, they inherited a rental property valued at $400,000. It is now worth around $580,000 but is only returning 3% p.a after associated fees and charges ($4,680 per year) is actually lower. They are not that happy with the property but would hold onto it if it was financially suitable.
• They pay their accountant $1,800 a year
• Their current mortgage balance on their home is $247,000, they have thought of refinancing

With the shares and the property, they are wondering if they are burdening themselves unnecessarily. They find it all confusing, time consuming and seemingly not very rewarding. When asked to itemise their expenses, they provided the following calculations:

• Food and petrol - $36,000
• Mortgage - $32,400
• Other living expenses - $32,000
• Home, car and property insurance - $3,500
• School fees - $20,000
• Holidays - $15,000
• Credit cards - $22,550

They estimate their credit card balance is around $65,000 at approximately 16.75%. As for personal insurance, neither have income protection or trauma cover. Bella has $34,000 in life and TPD in her super and Jim has $64,000 life and TPD. Bella cannot get higher cover in her fund as the cover is standard. Jim can purchase up to three (3) times his salary. They are concerned about their budget if personal insurance is needed.