Statement of Advice

Terry and Roberta Noack have recently moved to Western Australia from Victoria because Roberta has recently started a new job as an Electronically Remote Controlled Iron Ore loader. Fortunately, the new job has seen Roberta's salary increase to $140,000 (Plus SGC)

Terry, on the other hand, decided to walk away from his lawn mowing business in Victoria to support Roberta's new opportunity. Terry has been able to find work as a barman earning a salary of $33,000 (Plus SGC)

Terry is 49 years old and has $12,000 in Superannuation. Roberta is 59 years old and has $123,000 in Superannuation.

They want to retire when Roberta is 65 years old.

They require at least $100,000 after tax for living expenses.

Each of their Superannuation is invested in ABC Super which they would like to retain. Their Risk profile is Balanced. (assumed future rate of return after fees of 7.3%).

They come to you looking for Financial Advice.

your Tasks

Acting the role of a financial advisor, write a Statement of Advice for Terry and Roberta which covers the following areas of their personal finances:

1.Including calculations, the advantages and disadvantages of Salary Sacrificing. Including a specific recommendation for them.

2.Including calculations, the advantages and disadvantages of Superannuation Splitting including a specific recommendation for them.

3.Including calculations, the advantages and disadvantages of Spouse Contributions including a specific recommendation for them.

4.Including calculations, the advantages and disadvantages of Government Co-Contribution.

5.Calculations of how much they will have in Superannuation by the time Roberta turns 65 if they implement your recommendations and their Superannuation funds average a 7.3% annual return net of fees. Provide calculations in a table format showing year by year contributions, account balances, taxes and investment returns.