YOUR TASK

 

Create a financial plan/Statement of Advice (SoA) which will assist Dean and Hamish in achieving their life objectives with emphasis on their insurance and superannuation needs.

 

You must first collate their information so that you may undertake analysis of the information. This is in tasks A.1 to A.6. You will then need to analyse the information to identify the strengths and weakness of their existing financial position. This is in tasks A.17.

Recommend a realistic solution in detail of how to fund their comfortable retirement using superannuation:

i) Quantify the lump sum requirement they will need based on their retirement income needs and life expectancy.

ii) Project their superannuation to retirement and calculate the retirement shortfall (or surplus) without any changes to the recommendation

iii) Provide a recommendation on how they may contribute more (or less) to superannuation to fulfil their lump sum requirement.

The retirement needs analysis needs to consider their risk profile, recommended asset allocation and effect of the recommendation on their other life priorities.

Reasonable assumptions on life expectancy, investment returns, tax rates and inflation among other things must be made and clearly stated.You must provide calculations in an appendix. These will not be shown to the client so make sure all relevant information is in the SOA.