Problem
Information provided in the fact find can be summarised as follows:
|
Information
|
Alison
|
Mark
|
|
DOB
|
28 August 1966
|
1 June 1966
|
|
Marital status
|
Married
|
Married
|
|
No. of children
|
3
|
3
|
|
Dependent
|
Nil
|
Nil
|
|
Health
|
Good
|
Fair
|
|
Occupation
|
Home duties/Casual work once per year as electoral officer
|
Sales Representative
|
|
Salary
|
$1500
|
$120,000
|
Assets
|
Asset
|
Owner
|
Value
|
Comments
|
|
Everyday bank account
|
Joint
|
$3,000
|
Balance fluctuates-$3,000 would be average balance
|
|
High interest savings account
|
Mark
|
$50,000
|
Current interest rate 7%
|
|
CBA shares
|
Mark
|
$60,000
|
Purchased in 1984-all dividends reinvested
|
|
NAB shares
|
Mark
|
$40,000
|
Purchased in 2000-all dividends reinvested
|
|
Superannuation
|
Mark
|
$305,000
|
'Balanced' investment option
|
|
Superannuation
|
Alison
|
$15,000
|
'Balanced' investment option
|
|
Primary residence
|
Joint
|
$775,000
|
Have lived here for 20 years
|
|
Contents
|
Joint
|
$150,000
|
Insured value
|
|
Car
|
Mark
|
$30,000
|
|
|
Car
|
Alison
|
$10,000
|
|
|
Total
|
|
$1,438,000
|
|
Liabilities
|
Liability
|
Owner
|
Value
|
Comments
|
|
Home loan
|
Joint
|
$120,000
|
Variable rate currently 5.9%
|
|
Total
|
|
$120,000
|
|
Mark and Alison have indicated that retirement planning is the prime reason they are seeking your advice. Mark would ideally like to retire at age 63.
Mark and Alison have stated on the fact find that they would not want to accept any additional investment risk, and have further indicated that they are not happy with the recent performance of Mark's shares or their superannuation.
Question I
After reviewing the information provided by Alison and Mark, you immediately notice that some sections of the fact find have not been completed, and clarification is required on a number of items where information has been provided.
Formulate eight key questions that will build on your understanding of the Whites' stated position, their goals and their objectives.
Assume these questions have been put to the clients and also state their answers.
Question II
Following your meeting with the Whites, you now feel you have a reasonable understanding of their current position and their goals and objectives.
Based on the information in the fact find and the responses received to the questions asked in part (I), define the clients' goals and financial issues.
Question III
You now start to consider various strategies that will enable the Whites to achieve their goals and objectives.
Outline two strategies you will consider, focusing on their retirement objectives.