Vincenzo and Rebecca were born in the 1980's and their concerns are more immediate.

 They wish to buy a house for their family. They are currently renting in Williamstown. Rebecca's two children go to high school in Williamstown. Rebecca's ex-husband will no longer be liable to contribute to family support for the children when they turn 18. 

 Vincenzo works for John Holland Ltd as a senior IT manager on a salary of $150,000. Rebecca works as a special needs teacher at a primary school in Alphington. Her income is $50,000.

 They can afford to save $4,000 per month.

 They are not great budgeters but understand the need to save.

 Vincenzo owns an investment property in regional Victoria which generates rent of $18,500. The rental expenses including interest on the loan is $12,750. The property was bought for $185,000, 7 years ago and is currently valued at $259,000. The mortgage on the property is $110,000. The mortgage has always been on a variable rate. The current rate is 3.89%.

 He is looking to sell the property and put the money down as a deposit on a family home.

 Their relationship has been stable but the issue with the ex-husband has at times created friction.

 Vincenzo had been in a previous relationship himself for 12 years and has some issues about the current relationship.

 Vincenzo's grandfather has also indicated to him that on his death he will receive $100,000 as his share of the inheritance.

 Vincenzo also has superannuation of $198,000 with the employer fund established by John Holland Ltd.

 Rebecca, because of her divorce, does not have much by way of assets. Her primary concern is to ensure that the children are looked after.

 The children have no plans as to what they will do when they finish high school, but Rebecca would like them to go to university to ensure that they can get a job. She is concerned about the cost of education for them.

 

Issues you are to address for Vincenzo and Rebecca:

 Please also review our objectives in the fact find form to ensure that you advise us on everything we want to know, if not stated below.

Given the relationship between Vincenzo and Rebecca, who and how should the future family home be owned?

Who should own the investments acquired with the surplus income? 

Vincenzo and Rebecca would like investments that have a mix of income and growth (40%/60%). They have heard of Vanguard Investments and ETFs. They would expect an income return of at least 4.5% and capital growth of 5.8%. Are there any managed funds in the Vanguard portfolio that could achieve this return and what are the risks of not achieving such a return?

What is an ETF?