Question 5 - Client analysis - Mark & Andrea Fisher Marks allocated: 30 marks Mark is 33 and Andrea is 31. They have been married for three years and both have worked in their respective legal professions since graduating from university. Mark currently earns an annual salary package of $80,000 (plus 10% employer superannuation contributions). Andrea is on a package of $115,000 per annum (plus 10% employer superannuation contribution). Neither of them packages any fringe benefits nor receives a bonus. After saving towards a deposit for their first home and receiving some help from Mark's parents, Mark and Andrea are now the proud owners of a three-bedroom semi-detached home in Nice Suburb, Sydney, which they purchased five years ago for $820,000 with a $200,000 deposit in April 2008. This is Mark and Andrea's first visit to a financial planner, but they feel it is time to see an expert now that they have bought a house and married. They want to turn their focus to building wealth and building their savings for retirement. They both want to retire when Mark is 58 (Andrea will be 56). They are happy with their home purchase and wish is to increase their investment savings and their savings for retirement. In addition, Andrea has decided to work reduced hours in around twelve months' time, so she can focus on postgraduate studies. Her income will fall to $65,000 per annum (plus superannuation guarantee) from that date. They would like to start a family after Andrea completes her studies, which is at least three years away. They plan for Andrea to be the full-time carer and Mark will continue to focus on his career at the law firm (where he is looking to make partner level). The clients have no personal insurances. You provide the clients with your Financial Services Guide (FSG) at the commencement of the interview. During your fact-finding interview and subsequent review of the Fisher's situation you discover you need more information from them. You also wonder if they need further specialised advice in other areas. Refer to the case study and answer the following questions: a) What other information do you require from the clients? (List at least four (6) items) (3 marks - 12 mark per item) b) What additional questions could you ask the Fishers to elicit qualitative information from them? Do not list questions requiring one-word answers or yeso etc. (List at least four (4) questions) (4 marks - 1 mark per item) c) c) List four (4) further questions for the Fishers to specifically clarify their stated goals and objectives? (4 marks - 1 mark per item) d) What do you think the client's main objectives are? Rank them in order of priority (at least 3). List any assumptions you have made. (3 marks) e) List two (2) areas you will not be providing advice to the Fishers and explain your reasons. (4 marks) f) List any other professionals to whom you will be referring the Fishers for specialist You provide the clients with your Financial Services Guide (FSG) at the commencement of the interview. During your fact-finding interview and subsequent review of the Fisher's situation you discover you need more information from them. You also wonder if they need further specialised advice in other areas. Refer to the case study and answer the following questions: a) What other information do you require from the clients? (List at least four (6) items) (3 marks - 22 mark per item) b) What additional questions could you ask the Fishers to elicit qualitative information from them? Do not list questions requiring one-word answers or yeso etc. (List at least four (4) questions) (4 marks - 1 mark per item) c) c) List four (4) further questions for the Fishers to specifically clarify their stated goals and objectives? (4 marks - 1 mark per item) d) What do you think the client's main objectives are? Rank them in order of priority (at least 3). List any assumptions you have made. (3 marks) e) List two (2) areas you will not be providing advice to the Fishers and explain your reasons. (4 marks) f) List any other professionals to whom you will be referring the Fishers for specialist advice. (2 marks) g) Write a letter addressed to the clients explaining your role as a financial adviser and the service that your organisation provides. At the end of the letter list what literature you would include that would assist them to understand your organisation and your role. (5 marks) 1 Question 5 - Client analysis - Mark & Andrea Fisher Marks allocated: 30 marks Mark is 33 and Andrea is 31. They have been married for three years and both have worked in their respective legal professions since graduating from university. Mark currently earns an annual salary package of $80,000 (plus 10% employer superannuation contributions). Andrea is on a package of $115,000 per annum (plus 10% employer superannuation contribution). Neither of them packages any fringe benefits nor receives a bonus. After saving towards a deposit for their first home and receiving some help from Mark's parents, Mark and Andrea are now the proud owners of a three-bedroom semi-detached home in Nice Suburb, Sydney, which they purchased five years ago for $820,000 with a $200,000 deposit in April 2008. This is Mark and Andrea's first visit to a financial planner, but they feel it is time to see an expert now that they have bought a house and married. They want to turn their focus to building wealth and building their savings for retirement. They both want to retire when Mark is 58 (Andrea will be 56). They are happy with their home purchase and wish is to increase their investment savings and their savings for retirement. In addition, Andrea has decided to work reduced hours in around twelve months' time, so she can focus on postgraduate studies. Her income will fall to $65,000 per annum (plus superannuation guarantee) from that date. They would like to start a family after Andrea completes her studies, which is at least three years away. They plan for Andrea to be the full-time carer and Mark will continue to focus on his career at the law firm (where he is looking to make partner level). The clients have no personal insurances. You provide the clients with your Financial Services Guide (FSG) at the commencement of the interview. During your fact-finding interview and subsequent review of the Fisher's situation you discover you need more information from them. You also wonder if they need further specialised advice in other areas. Refer to the case study and answer the following questions: a) What other information do you require from the clients? (List at least four (6) items) (3 marks - 12 mark per item) b) What additional questions could you ask the Fishers to elicit qualitative information from them? Do not list questions requiring one-word answers or yeso etc. (List at least four (4) questions) (4 marks - 1 mark per item) c) c) List four (4) further questions for the Fishers to specifically clarify their stated goals and objectives? (4 marks - 1 mark per item) d) What do you think the client's main objectives are? Rank them in order of priority (at least 3). List any assumptions you have made. (3 marks) e) List two (2) areas you will not be providing advice to the Fishers and explain your reasons. (4 marks) f) List any other professionals to whom you will be referring the Fishers for specialist You provide the clients with your Financial Services Guide (FSG) at the commencement of the interview. During your fact-finding interview and subsequent review of the Fisher's situation you discover you need more information from them. You also wonder if they need further specialised advice in other areas. Refer to the case study and answer the following questions: a) What other information do you require from the clients? (List at least four (6) items) (3 marks - 22 mark per item) b) What additional questions could you ask the Fishers to elicit qualitative information from them? Do not list questions requiring one-word answers or yeso etc. (List at least four (4) questions) (4 marks - 1 mark per item) c) c) List four (4) further questions for the Fishers to specifically clarify their stated goals and objectives? (4 marks - 1 mark per item) d) What do you think the client's main objectives are? Rank them in order of priority (at least 3). List any assumptions you have made. (3 marks) e) List two (2) areas you will not be providing advice to the Fishers and explain your reasons. (4 marks) f) List any other professionals to whom you will be referring the Fishers for specialist advice. (2 marks) g) Write a letter addressed to the clients explaining your role as a financial adviser and the service that your organisation provides. At the end of the letter list what literature you would include that would assist them to understand your organisation and your role. (5 marks) 1
