You are a financial adviser to Daniel (49) and Judy (50) for the last 5 years. Over the years you have prepared SOAs for them and offered them various advices. They have recently contacted you regarding their investment in Commonwealth Bank shares. You have prepared a Statement of Advice taking into consideration the following:

1. Daniel is a landscape designer and Judy is a nurse. Both have full time jobs but Judy is considering taking some time off and then may be only go back part time as she feels her workload over last few years during the Covid-19 pandemic has left her somewhat weary.

2. Their only daughter Ella has just left home to study in Perth. They do not have any other dependants.

3. Their mortgage is being paid off in conformity with their long term plans.

4. Their contributions to superannuation are close to the concessional cap.

5. The bought some Commonwealth Bank shares about 3 years ago, the market value of these shares are about $20,000

6. They are now uncertain if they should keep the shares or whether they should invest this $20,000 instead in a managed fund.

7. They have asked for this meeting to discuss their investment options in some detail. However, on the day only Judy came as Daniel had to be at work.

Consider these points in your recommendations and in your advice, provide both advantages and disadvantages of direct and indirect investing.