Financial Planning
Case：
Peter (30) and Fred (29) are married. They are currently renting at a cost of $600 a week. Peter works as a project manager earning $105,000 per annum plus Super Guarantee (SG) contribution. Fred is a Fitness Instructor earning $33,000 plus SG.
They have come to you as they both want to take a career break and travel through Europe in 2025. You have had a comprehensive meeting with them and have completed relevant sections of the fact find document. The budget discussion you had with them reveals they expect to be able to save approximately $12,000 per annum. They have each completed a risk profile with you that included a detailed discussion about their individual risk profiles as well as their joint investment risk profile. Both Peter and Fred have expressed their desire to get their immediate financial issues sorted as a priority.
Peter has accumulated three funds due to job changes over his career and hasn’t exercised superannuation choice to date. Peter doesn’t want to be “sold a new fund”, he just wants you to provide advice on which of his current funds is most suitable for the others to be consolidated into. Peter also sees himself as a “Balanced Profile or 70% Growth assets” investor and also wishes to align his superannuation funds to his risk/return preferences.
Peter’s father – John, has been diagnosed terminally ill and wishes to provide Peter the balance of his superannuation fund ($300,000) to help him financially. Peter would like your advice on potential issues and strategies around this.
Peter and Fred would like to take a career break and travel through Europe in 2025 at an estimated cost of $60,000. Peter and Fred want help on strategies to pay off their debts before they go on their career break holiday in 2025.
Peter and Fred haven’t given much thought to personal insurances in the past as they felt they were too fit and healthy for it to be a need. They would however be interested in your professional opinion as to whether there are any gaps or opportunities you can identify for their situation.
Question：
1.Stated clients current financial and non-financial information
2.repared statements of the client’s net worth, cash flow and budget
Requirment：
Proper formatting: Arial 12 font, single spacing, 2cm margins
Words Limit：A4 -3 pages exclude references
References： 10
Page 1 of 35 For educational use only.
Fact Find Document: Getting help with the financial decisions that matter to you
Congratulations, you’ve taken the first step to achieving the things you dream about. The next step is
to help us understand you, your family and what you want to achieve a little better. This lets
us provide advice and services that are right for you.
Date: DD.MM.YYYY
About me
Here are our contact details. Don’t hesitate to contact us if you have any questions; we’re here to help.
My contact details
Name: Planner
Practice name: “The Practice”
Phone: 1300 000 000
Fax: 1300 000 000
Email:
Website:
Representative of AMP Financial Planning Pty Limited ABN 89 051 208 327 AFS License No. 232706
About you
This section captures information about your personal details, such as your current contact
details and how you would like to be contacted by us.
Your personal details
Individual details
Client 1 Client 2 Title
Mr Mrs Ms
Dr Miss
Other:
Mr Mrs Ms
Dr Miss
Other:
Surname Bolands Bolands
Given name Peter Fred
Preferred name – –
Date of birth
12/11/1987 27/11/1988
Sex Male Female Male Female
Relationship status Married Married
Page 2 of 35 For educational use only.
We collect residency and citizenship information to help us comply with Anti-Money Laundering and
Counter-Terrorism Financing laws.
Tax resident of
Australia
Yes No
Yes No
Country of residence Australia Other: Australia Other:
Country of
citizenship
Australia Other:
Australia Other:
Contact details Client 1 Client 2
Home address
Work address
22 West Side Street
Sydney, NSW 2000
22 West Side Street
Sydney, NSW 2000
Postal address
Same as above
Same as above
Contact details:
Tick preferred
method(s):
Home: 1234 4321
Work:
Mobile: 0123 456 789
Email: pb@hotmail.com
Fax:
Home: 1234 4321
Work:
Mobile:
Email: fb@hotmail.com
About your family This section captures information about your family, including your children and other family members
that are dependent on you. This helps me consider both you and your family when I make my
recommendations.
Dependants/Children
You have no children/dependants at this time You choose not to provide these now
Name
Sex
Date of birth
Tick if
financially
dependant
If yes,
until what
age Dependants /
Children
_ _ / _ _ / _ _ _ _
_ _ / _ _ / _ _ _ _
_ _ / _ _ / _ _ _ _
Notes (eg special needs, family matters etc.):
No dependants
mailto:pb@hotmail.com
mailto:fb@hotmail.com
Page 3 of 35 For educational use only.
What’s on your mind?
This section captures why you have come to see us and any concerns or goals you may have. This will allow us to determine your needs and objectives in the advice we provide.
“We both want to take a career break and travel through Europe in 2025. This is something we’ve been thinking about for a while, we’re very excited but worried we won’t have enough money to really enjoy the trip”.
“We really want to get Peter’s super into just one place, it’s annoying because we keep seeing superannuation ads but don’t know where to start”.
“Peter’s dad – John, has recently been diagnosed terminally ill due to an aggressive cancer and has received a prognosis that he will pass away within the next year. Peter would like your advice on receiving his superannuation funds in the most tax effective way.
John has provided his super statement (see appendix) so you can identify any potential issues and suggest any potential strategies that could help Peter (your client) in receiving these funds.
“We’ve got a few small debts that feel like they’re not reducing at all and we’d like to be debt free before our holiday”.
“Insurance for ourselves has never crossed our minds but we would be interested to know if we should be concerned”.
Page 4 of 35 For educational use only.
How would you like to get there?
In this section we will start to categorise and
detail each of your goals under specific
scopes. This will help us to determine
priorities for each category and develop an
appropriate timeline as a next step.
Both Peter and Fred want to pay off
their debts before they go on holiday in
2025.
Number 4 priority
Peter’s dad has been diagnosed as
terminally ill and Peter would like
advice on receiving his dad’s super
funds effectively.
Number 3 priority
Peter and Fred are wanting to take a
career break and holiday for 6
months through Europe in 2025.
They’re concerned about having
enough money for the trip
Number 1 priority
Not specifically seeking advice in this
area but open to you identifying potential
gaps
Number 5 priority
Peter wants to have just one fund and
doesn’t want advice on any new funds.
He just wants advice on which of his
existing 3 funds to keep.
Fred stated he doesn’t want advice in
this area because he only has one fund
and is happy with how it’s managed.
Number 2 priority
Peter and Fred do not have any home
or property goals and don’t want to be
financially restricted by having a
mortgage
Not a priority
Page 5 of 35 For educational use only.
Peter and Fred both feel
that travel will continue
to be important over the
foreseeable future and
don’t want to be “bogged
down” by having a
mortgage.
Currently, they are
renting a one bedroom
studio in the heart of the
city.
They understand that
financially this could be
a significant lost
opportunity but feel that
the financial flexibility of
not having a mortgage is
more important.
Not a priority
Fred and Peter are both
excited to be planning
an extensive break from
their careers in 2025 to
travel through Europe
and estimate they’ll
need about $60,000 to
fund this six month trip
comfortably.
Number 1 priority
Peter and Fred have a
couple of credit cards
they would like to reduce
(details enclosed in this
document).
Number 4 priority
Fred doesn’t want
advice but Peter feels
annoyed with himself
because he has multiple
funds and doesn’t know
where to start.
Peter would like to get
his super sorted into just
one fund, that’s easy to
track, administer and is
invested in his way.
Fred wants to keep his
existing fund as it is.
Number 2 priority
Peter and Fred both
regularly compete in
Crossfit and feel like
they are in “excellent
health” as they exercise
most days and eat well.
They have had no
significant injuries or
health issues in the past
and feel that insurance
is probably irrelevant as
they don’t have
dependants and are
able to support
themselves financially if
needed.
They are open to
hearing your thoughts
about any potential
financial gaps or issues
you can identify from
their situation.
Number 5 priority
Peters’ dad – John has
provided you authority to
consider his current
super fund and provide
advice to Peter on
receving these monies
as he is terminally ill. He
has advised Peter he
has sufficient assets
outside of
superannuation and
wants Peter, his only
child, to receive his
superannuation
proceeds.
Number 3 priority
No other lifestyle
changes are expected.
Peter and Fred feel
they’re conservative
spenders and that they’ll
be spending about the
same level in retirement
that they’re spending
now.
They don’t want to
Page 6 of 35 For educational use
only.
What’s important to you?
In this section we will start to categorise and detail your goals captured in the What’s on your
mind section under specific areas. This will help us to determine priorities for each area and
develop an appropriate timeline as a next step.
Timeframe to commence achieving goal: Short = commencement within a year, medium = 1- 5 years, long = more than 5 years.
Timeframe
(to commence) Priority Amount
Priority 1 – Peter and Fred would like to take a
career break and travel through Europe in 2025.
They’ve estimated they need $60,000 to fund this
trip
Short
Medium
Long
1 $60,000
Priority 2 – Peter wants to get his multiple super
funds into one place, which means to him:
(1) getting advice to help choose one of his existing
super funds and rolling the others into it to make
administering it easier
(2) having his balance invested in line with the way
he wants to invest.
Short
Medium
Long
2
$30,000
(Spread
across 3
funds)
Priority 3 – “Peter’s dad (John) has recently been diagnosed terminally ill and is expecting to pass away within the next year. Peter is expecting to receive his superannuation funds and John has provided his super statement (see appendix) so you can suggest any potential strategies that could help Peter (your client) in receiving these funds.
Short
Medium
Long
3
$300,000
(Refer to
John’s
Super
Statement)
Priority 4 – Peter and Fred want advice on how to
pay off their debts before they go on holiday in
2025. “We don’t want product advice as we can
sort that out ourselves with our banks but we do
want your help with choosing the right strategy”.
Short
Medium
Long
4
$23,000
debts
(credit
cards)
Priority 5 – Peter and Fred feel they’re healthy and
probably don’t need insurance but are interested to
see if you can identify any potential gaps or issues
in their current situation.
Short
Medium
Long
5 To Be
Advised
Page 7 of 35 For educational use only.
Risk Profile Questionnaire
Your risk profile looks at investment risk and your attitude to it. By asking you more detailed questions
we can determine the most appropriate investment strategies to match your investment risk profile.
Once all the sections are complete, we will discuss your scores and whether or not you are comfortable
with the outcome. Where you hold assets jointly, you and your partner need to agree on a combined
score. (Note: 1* = Client 1 (Peter) and 2** = Client 2 (Fred)).
1. What is your major investment objective?
Score
1*
2**
Joint
Avoid any fluctuation in the value of my investments.
0
Maintain the security of my investments with regular income to live
on.
10
Maintain regular income with some exposure to capital growth.
20
Maximise the growth of my investments.
40
2. How would you react if your investments were to decline in
value by 20% in one year?
Score
1
2
Joint
Withdraw all my funds immediately and move them to bank deposits.
10
Withdraw part of my money and move it to an alternative strategy.
20
Wait until I recovered the 20% loss and then consider alternative
strategies.
20
Remain invested and follow the recommended strategy.
30
Increase the amount invested if possible because the market has
become cheaper.
40
3. An investment portfolio with high exposure to growth assets
tends to generate higher returns, albeit with some volatility. To
what extent are you willing to experience volatility to generate
higher returns?
Score
1
2
Joint
I’m very comfortable. I understand that to generate higher returns
there is risk of fluctuation of my investments in the short term.
However, over the long term, there is a low risk of capital loss.
40
I’m somewhat comfortable, assuming there is a limit to the volatility.
30
I’m a little uncomfortable seeing my investments fluctuate.
20
I’m much more comfortable with investments that have minimal
volatility.
10
Page 8 of 35 For educational use only.
4. Which of the following best describes your attitude towards
investment losses?
Score
1
2
Joint
I would check the value of my investments several times a month
and feel very uneasy if I began to lose money.
10
Daily losses make me uncomfortable, but are not cause for alarm. I
would, however, start to feel very uneasy if I made a loss on my
investments over a 12-month period.
20
I take substantial day-to-day changes in my stride. However I would
start to feel very uneasy if I didn’t recover any significant losses within
a 1 to 2 year time frame.
30
If my investment suffered significant losses over a 2 year period and
I still believed in my long-term strategy, I would remain fully confident
of a recovery in performance.
40
5. What is your preferred strategy for managing investment risk?
Score
1
2
Joint
To have a diversified investment portfolio across a range of asset
classes to minimise risk
30
I don’t want to reduce it as investment risk leads to higher returns
over the long-term.
40
To invest mainly in capital stable investments.
10
I don’t understand the definition of ‘investment risk’. I rely on my
financial planner to achieve this.
0
6. In the past, how would you describe your overall investment
decisions?
Score
1
2
Joint
Not applicable. I’m a first time investor or have only ever invested via
my superannuation fund
20
Good, I have stuck to stable and safe investments.
10
Good, I have been rewarded for making investments that can
fluctuate in value.
40
Fair, however I would like to improve my returns.
20
I’ve had some losses, but am willing to give it another go.
30
I’ve had some losses and am reluctant to invest in anything that
fluctuates in value.
0
7. Which of the following best describes your understanding of
the investment market? Score
1
2
Joint
Page 9 of 35 For educational use only.
I am an experienced investor and constantly keep up to date with the
investment market. I’ve had exposure to various asset classes and am
fully aware of the risks involved to gain high returns.
40
My awareness of the financial market is limited to information
passed on by my broker or financial planner. I rely on the
professionals to keep me up to date.
30
I have little awareness of the investment market. However, I have a
desire to build my knowledge and understanding.
20
I’m not familiar with investments or financial markets.
10
8. What is your willingness to risk shorter term losses for the
prospect of higher longer term returns?
Score
1
2
Joint
High
40
Moderate
30
Not sure
20
Low
10
9. Have you ever borrowed money to make an investment other
than your own home eg investment property, holiday home,
share portfolio, margin loan etc.?
Score
1
2
Joint
No
0
Yes
30
No, but I’m willing to consider it now
20
Yes, but I’m not prepared to borrow at the moment to invest
10
Total score
1
2 Joint
Add up the scores for each question and record the totals. 230 200 230
According to the information below, what is your risk profile? Balanced Mod
Cons
Balanced
If you don’t agree with above, what is your preferred risk profile? N/A – Peter and Fred agree
Notes
A detailed discussion was held regarding their different attitudes to risk and return in relation to their goals.
Explained the risk/return trade off, volatility and the different asset allocation options were discussed. Both Peter and Fred agreed their risk profile assessments were accurate in how they would describe themselves and their preferred weighting of growth to defensive assets.
Risk
Return
Risk/Return Trade-Off Growth
Page 10 of 35 For educational use only.
What does it all mean?
Your attitude to investment risk is a crucial factor in determining an appropriate investment strategy to
meet your needs. Investing is considered risky because there is uncertainty about how the investment
will perform over the short and long term. Different types of investments experience different levels of
volatility. Negative returns can happen at any time, so during periods of poor performance, remaining
invested for the minimum investment term will provide an opportunity for your portfolio to recover.
Here are the main approaches to investing, otherwise known as investment risk profiles.
Score Risk profile Description
N/A
Short Duration
(100% cash)
Protection of capital or certainty of income is your only objective. You
do not wish to attain higher returns if your capital is at risk.
50 – 110
Conservative
(25% Growth)
You are a defensive investor. You are willing to consider less risky
assets; mainly cash only and some fixed interest investments. You
are prepared to accept lower returns to protect the value of your
capital. The recommended minimum investment term is 3 years.
111 –
160
Cautious
(40% Growth)
You are a cautious investor seeking a combination of income and
growth, but risk must continue to be low. Therefore, you will maintain
a greater weighting to defensive assets within your portfolio, but will
consider including some of the less aggressive growth investments.
Generally you are willing to chase improved short-term returns while
accepting some, limited short-term volatility. The recommended
minimum investment term is 3 years.
161 –
210
Moderately
Conservative
(55% Growth)
You are an investor seeking a combination of income and growth from
your investment portfolio. Generally, you are willing to chase medium
to long-term goals while accepting the risk of short to medium-term
negative returns. Your investment mix is likely to include an equal mix
of the defensive assets and growth assets such as equities and
property. The recommended minimum investment term is 3 years.
211 –
260
Balanced
(70% Growth)
You are a growth investor. You are willing to consider assets with
higher volatility in the short-term (such as equities and property) to
achieve capital growth over the medium to longer term. Your
investment mix will comprise a greater share of growth assets. The
recommended minimum investment term is 5 years.
261 –
310
Moderately
Aggressive
(85% Growth)
You are a growth investor. You are pepared to accept higher volatility
in the short to medium term, your primary concern is to accumulate
growth assets over the long term. Your investment mix will spread
across all asset sectors but will mainly consist of more aggressive
investments. The minimum investment term is 6 years.
311 –
350
Aggressive
(100% Growth)
Your primary objective is capital growth. You are an aggressive growth
investor and are prepared to compromise your portfolio balance to
pursue greater long-term returns. You are willing to accept higher
levels of risk. Fluctuation in capital is acceptable in the short-medium
term for the greater potential for wealth accumulation. With the
exception of a minimal level of cash for liquidity purposes, your
investment mix will only consist of growth assets such as international
and domestic equities. The minimum investment term is 7 years.
Page 11 of 35 For educational use only.
Are there changes you’d like to make?
In some cases, it may be appropriate to use a different risk profile approach to your assets or
strategies. For example, to meet your retirement objectives, we may recommend that a specific risk
profile be applied to your superannuation investment due to your timeframe, which may be different to
other savings you may have available.
You may also have some assets for which you would like to protect the capital you used to purchase
the asset. We can recommend products that provide capital protection if that is important to you. It’s
important to note that capital protected products will generally attract higher management fees. They
will allow you to protect your capital in the event of a market downturn; but you may experience lower
returns when markets perform well, as your overall returns will be reduced by the higher management
fees as compared to non-protected products.
The table below will help capture your desired risk profile in relation to specific assets and whether
you would like any level of capital protection.
Client 1 Client 2 Joint
Short
term
goals
Amount ($) and
source (bank,
super account
etc.)
Peter (Balanced) and Fred (Moderately conservative) agree with their risk profile outcomes as well as their joint investment (Balanced). Explained the other prescribed risk profile options in “What does it all mean” section however Peter and Fred individually advised the risk profile outcomes generated from the questionnaire best described themselves. Peter and Fred don’t have any specific preferences for their individual goals or savings and investment vehicles to get to those goals. They would like advice in this area.
Investment risk
profile for the
above
Capital protection
option ($ portion)
Long
term
goals
Amount ($) and
source (bank,
super account
etc.)
Investment
strategy
Capital protection
option ($ portion)
Reasons for risk profile
variations
Peter and Fred advised they don’t want to vary their risk profiles.
Page 12 of 35 For educational use only.
About your employment
We collect details of your current employment as it can affect the following:
Eligibility for certain insurances
Cost of insurance premiums
Eligibility for tax concession on certain types of super contributions
Whether you can access your superannuation or not.
Client 1 Client 2
Occupation type
Employee
Self-employed
Semi-retired
Retired
Retired – ill-health
Un-employed / Home Duties
Employee
Self-employed
Semi-retired
Retired
Retired – ill-health
Un-employed / Home Duties
Employment type
Permanent F/T
Permanent P/T
Casual
Contract (expires: )
Permanent F/T
Permanent P/T
Casual
Contract (expires: )
Hours worked (per week) 40 40
Industry Construction Sports
Employer name Robert Builder Works Rabbit Toes Sports
Occupation Project Manager Fitness Instructor
Main duties Office Duties Individual
Page 13 of 35 For educational use only.
About your income and expenses
We use this section to collect information on your income and expenses. This helps me understand
your current cashflow situation which will assist me in providing appropriate recommendations.
Alternatively, you can provide me with your last tax return. We can also use the Detailed expenses
appendix or the Budgeting and Cashflow tool to help you work out your current expenses.
Annual household income
Income description Client 1 Client 2
Base salary or wages $105,000 $33,000
Other income (ie investment income, Centrelink income etc)
$ 0
$ 0
Total $ 105,000* $ 33,000*
Notes (ie salary packaging details etc):
*Superannuation Guarantee is paid based on this amount and has not been included in this figure.
Annual household expenses
Category Total
Estimated annual expenses
$Unknown
Estimated surplus / deficit
(after all lifestyle, loan, premium and contribution expenses)
$1000 per month*
Where an income surplus is identified, where is this currently
directed?
Bank account, then used up on
additional lifestyle expenditure
and travel if available (could be
redirected)
Where an income deficit is identified, how is this currently
funded?
Not applicable
Notes:
*Peter and Fred advised their personal budget analysis revealed an annual surplus opportunity of $12,000. This surplus is calculated after deducting all living expenses, rent at $600 pw, and regular minimum debt repayments. Peter and Fred have been exhausting their surplus on their lifestyle (not included in living expenditure) but are open to using this money for savings and investment opportunities.
Page 14 of 35 For educational use only.
Personal Liabilities (including credit cards)
This section captures information on your personal liabilities so we can consider the impact of them
when providing advice to you.
Loan name
and type
Owner Remaining
Balance
Intere
st rate
Payment
amount /
frequency
Tax
deduction
Retain
1 2 Joint
1 Credit Card – GF Mastercard
$10,000 23.5% Minimum
payment (about $255 per month)
0%
Fixed
Variable Principal &
interest
Interest only
2 Credit Card – Critic bank Visa
$13 000 20.99% Minimum
payment (about $332 per month)
0%
Fixed
Variable Principal &
interest
Interest only
Notes:
Peter and Fred have been paying off the minimum on their credit cards as they fall due but feel like we “keep paying but don’t seem to be making a difference”.
Page 15 of 35 For educational use only.
Superannuation assets
This section is to collect details on your existing super funds so we can consider them as a part of our
advice to you. You can give me current statements rather than completing the tables below.
Owner Product name
Balance
Type of
contribution(s)
Amount (pa)
Account
number 1 2
Alpha Super
$3 000 Employer
$S.G. #xx
$0
$0
Beta Super
$17 000
$0 #xx
$0
$0
Omega Super
$10 000
$0 #xx
$0
$0
*Note – Fred has stated he has $25,000 approximately in superannuation invested in approximately 55% growth (with no insurance available in the fund) and is happy for this information to be used in any strategic projections or financial modelling but does not want to provide any further details as he is “completely happy with his fund”.
Description 1 Alpha 2 Beta 3 Omega
Additional fund details
Market value as at date 20/0X/2018 20/0X/2018 20/0X/2018
Retain Yes No Yes No Yes No
Name of nominated beneficiaries None Provided None Provided None Provided
Is nomination binding? Yes No Yes No Yes No
Taxable component ($) 3 000 17 000 10 000
Tax-free component ($) 0 0 0
Preserved amount 100% 100% 100%
Unrestricted, non-preserved amount ($) 0 0 0
Notes:
– Fred does not wish to reveal details of his super fund or receive super fund advice but has disclosed the amount (see Superannuation Assets section above) for inclusion in retirement planning calculations.
– Peter is unsure of which one of his funds to retain and would like advice in this area. – A one page statement summary for all three of Peter’s funds has been provided in
Appendix 1.
Page 16 of 35 For educational use only.
Superannuation planning considerations
This section captures information about any concerns you have with your superannuation planning
and any specific issues you would like to address.
Salary sacrifice Client 1 Client 2
Does your employer allow you to
salary sacrifice?
Yes No N/A
Yes No N/A
Details on past contributions
Please provide details of
contributions you have made in
the last 5 year.
NOTE: It is important you
provide us with accurate
information here. If you do
not disclose the full details of
contributions you have made
this financial year, we may
provide you with inappropriate
advice that may result in
significant tax consequences
Amount
Type
Year
Amount
Type
Year
Neither client has contributed previously
Lost super search
Do you have lost super funds? Yes No Unsure Yes No Unsure
Do you want a lost super search
conducted?
Yes No
Yes No
Investment preferences
Do you prefer/wish to avoid any
investments?
If yes, please give details.
Yes No Yes No
Work test
If you are aged between 65 and
75 years have you worked a
minimum of 40 hours over any
30 consecutive days in the
current tax year?
Yes No N/A
Yes No N/A
*Both Peter and Fred haven’t personally made any contributions to superannuation in the past.
Page 17 of 35 For educational use only.
Retirement planning considerations
This section captures information about any concerns you have in relation to your retirement planning
and any specific issues you would like us to address.
Retirement needs Client 1 Client 2
At what age do you plan to retire? Both Peter and Fred feel like their current lifestyle
expenditure will continue until their respective life
expectancies (83 yrs for both Peter and Fred based on
AMP’s life expectancy calculator)
No other assets available other than provided
How much income do you think
you will need in retirement?
Which assets will you use to fund
your retirement other than
superannuation?
How much money do you want to
have available in case of
emergencies?
$ Unsure
$ Unsure
Do you wish to live off income and
preserve capital?
Yes No
Yes No
Do you have any planned
expenses in retirement?
If yes, how much and when?
Yes No
Yes No
$ 0
$ 0
Will you downsize your home?
If yes, how much will you free up?
Yes No
Yes No
$
$
Do you wish to live off income &
capital with no need to preserve
capital for Estate?
Yes No
Yes No
Do you wish to live off income &
some capital and would like to
preserve some capital for Estate,
if possible?
Yes No
Yes No
Centrelink
Are you interested in qualifying for
any Centrelink or DVA payments
or benefits?
Yes No
Yes No
What substantial gifts have you
made in the last 5 years?
$ 0
$ 0
If yes, please provide details
N/A
N/A
Page 18 of 35 For educational use only.
Insurance policies
This section is used to collect details about your existing insurance policies so we can consider them
as part of our advice to you. Alternatively, you can provide us with product statements that contain
this information. We may also assess whether these products are suitable for you if we agreed to
include this as part of our advice.
Life insured
Owner Insurer & policy no. Type and level of cover
Premium pa
Inside super
1
1 Peter
Alpha
Insurance
(Policy # XX)
Life:
$900,000
$630
TPD:
$900,000 $540
TSC/IP:
$0
$0
Benefit
period:
– –
Waiting
period:
– –
Trauma:
$0
$0
Page 19 of 35 For educational use only.
Health considerations
We collect details of your current health; it’s important for us to determine any health issues as this
may impact the advice I provide you.
Client 1 Client 2
How would you rate your current health?
Excellent Good
Average Poor
Excellent Good
Average Poor
Do you have private health cover? Yes No Yes No
If yes, what type of cover? Full Hospital and
Extras
Full Hospital and Extras
Who is your health insurance provider?
HCF HCF
For new insurance with underwriting only
Do you currently have any family / personal
health, lifestyle or occupation issues that may
affect you?
Yes No
Not disclosed
Yes No
Not disclosed
If yes, please detail
Have you smoked in the last 12 months? Yes No Yes No
How tall are you (cm)? 179cm 181cm
How much do you weigh (kg)? 81 83
Have you suffered from any serious medical
condition or undergone any medical procedure /
operation in the last 10 years?
Yes No Yes No
If yes, please detail
Have you ever been diagnosed with or had any
of the following conditions?
Back
injury
Diabetes
Cancer
Depression/Stress/
Anxiety
Other
Back
injury
Diabetes
Cancer
Depression/Stress/
Anxiety
Other:
When previously seeking personal insurance,
have any personal health, lifestyle or
occupation issues affected the insurance
premium or policy terms?
Yes No
Not disclosed
Yes No
Not disclosed
If yes, how was the premium payable affected
or were there any special terms or exclusions?
Standard health
Declined or deferred
Loaded
Exclusion
Not disclosed
Standard health
Declined or deferred
Loaded
Exclusion
Not disclosed
Notes:
Page 20 of 35 For educational use only.
Insurance Needs Analysis We use this section when providing advice on the levels of insurance that you require.
Peter and Fred do not have any immediate requests for insurance or financial protection advice
but are interested to know if they have any gaps or issues that you can identify based on the
current details they have provided.
In the event of death or prolonged sickness/ injury to Peter, Fred has stated that he would return
to work almost immediately and would not require any of Peter’s income to be replaced.
In the event of death or prolonged sickness/injury to Fred, Peter has stated that he would return
to work almost immediately and would not require any of Fred’s income to be replaced.
Fred and Peter have advised their individual share of the living expenses to be approximately
50%:50%.
Peter and Fred each stated that in the event of their spouses:
• death, • permanent disability or sickness or • prolonged sickness or injury to
that they would fund their own retirement lifestyle.
Life insurance Needs
You do not have any life insurance needs You choose not to conduct a needs analysis
Client 1 Client 2
Lump sum required ($)
Lump sum required ($)
Clear debts
(eg mortgage, personal
loans)
$ $
Funeral costs
Emergency fund
Capital needs
Income required (pa) and
why?
Consider:
What level of income
needs to be
replaced?
Cover your entire
earned income?
Cover only living
expenses?
A different level of
income?
Page 21 of 35 For educational use only.
For how many years and
why?
Consider:
Will you need income until:
retirement
when your children
reach a certain age
Childcare/education (pa)
Consider:
Number of children
Type of education
(public vs private
school) and childcare
expenses
For how many years and
why?
Other funding (pa)
For how many years and
why?
Income replacement:
lump sum required
Realisable financial assets
Consider:
Liquidity of assets
Which assets
Property: $ Property: $
Shares: $ Shares: $
Cash: $ Cash: $
Super: $ Super: $
Other: $ Other: $
Realisable lifestyle assets
Home: $ Home: $
Other: $ Other: $
Total cover required
Existing cover retained /
transferred
Additional cover required
or
Amount of over-insurance
Are you expecting any
changes in the near
future that may require
you to increase your
insurance?
Page 22 of 35 For educational use only.
Preference to hold insurance inside superannuation
Preference to hold insurance outside superannuation
Page 23 of 35 For educational use only.
TPD Analysis
You do not have any TPD insurance needs You choose not to conduct a needs analysis Client 1 Client 2
Lump sum required ($) Lump sum required ($)
Clear debts
(eg mortgage, personal loans)
Medical / lifestyle
Emergency fund
Capital needs
Income required (pa) and why?
Consider:
What level of income
needs to be replaced?
Cover your entire income
Cover only existing living
expenses
A different level of
income
For how many years and why?
Childcare/education (pa)
Consider:
Number of children
Type of education (public
vs private school) and
childcare
For how many years and why?
Consider:
The number of years you will
need to fund these expenses
for your children – end of high
school? End of university?
Other funding (pa)
For how many years and why?
Income replacement:
lump sum required
Page 24 of 35 For educational use only.
Realisable financial assets
Consider:
Liquidity of assets
Which assets
Property: $ Property: $
Shares: $ Shares: $
Cash: $ Cash: $
Super: $ Super: $
Other: $ Other: $
Realisable lifestyle assets
Home: $ Home: $
Other: $ Other: $
Total cover required
Existing cover retained /
transferred
Additional cover required
or
Amount of over-insurance
Are you expecting any
changes in the near
future that may require
you to increase your
insurance?
Preference to hold insurance inside superannuation
Preference to hold insurance outside superannuation
Page 25 of 35 For educational use only.
Trauma analysis
You do not have any trauma insurance needs You choose not to conduct a needs analysis
Client 1 Client 2
Lump sum required ($) Lump sum required ($)
Clear debts
(eg mortgage, personal loans)
Medical / lifestyle
Emergency fund
Consider recovery income
Capital needs
Income required (pa) and why?
Consider:
Cover your entire income
Cover only existing living
expenses
A different level of income
For how many years and why?
Consider:
Trauma is designed to cover you
in the short term, usually for
Childcare/education (pa)
Consider:
Number of children
Type of education (public
vs private school) and
childcare
For how many years and why?
Consider:
Trauma is designed to cover you
in the short term. Any longer
term issues could be covered by
TPD and/or income protection
insurance
Other funding (pa)
For how many years and why?
Income replacement:
lump sum required
Page 26 of 35 For educational use only.
Realisable financial assets
Consider:
How easily assets can be
converted into cash
Any significant costs
associated with disposal
of assets
Property: $ Property: $
Shares: $ Shares: $
Cash: $ Cash: $
Other:
$
Other:
$
Realisable lifestyle assets
Consider:
How easily assets can be
sold
Use fire sale value of
assets and besides the
home, lifestyle assets
usually depreciate over
time.
Home: $ Home: $
Other:
$
Other:
$
Total cover required
Existing cover retained /
transferred
Additional cover required
or
Amount of over-insurance
Are you expecting any
changes in the near future
that may require you to
increase your insurance?
No
Page 27 of 35 For educational use only.
Income protection analysis
You do not have any income protection needs You choose not to conduct a needs analysis Income Protection analysis Client 1 Client 2
Occupation
Income
% of income to cover
Superannuation continuance
option
Total cover required (pa)
Less
Income not affected by disability
Existing cover retained /
transferred
Additional cover required (pa)
Additional cover required (pm)
Benefit period
Consider:
Do you have income protection
inside your super to cover a 2 year
benefit period?
Waiting period
Consider:
You could reduce your
premiums if you opt for a
longer waiting period. This
may be appropriate if you
have:
Cash reserves
Amount of accrued sick
leave
Income protection inside
client’s super fund
Page 28 of 35 For educational use only.
About your assets
We collect information on what you currently own so we can consider them as a part of our advice.
You can give me current statements with this information rather than completing the tables below.
Personal Assets (non income-earning assets)
You have no personal assets You choose not to provide these details now.
Description
Owner
Estimated market
value $
Estimated
Centrelink value $
Retain
1 2 Joint Other
Principal residence N/A – renting
Home contents $15,000 N/A
Motor vehicle 1 $18,000 N/A
Investment Property Assets
You have no investment property You choose not to provide these details now.
Description
Owner Date of
purchase /
Price $
Estimated
market
value $
Net
income
pa* $
Retain 1 2 Joint Other
/ /
$
/ /
$
/ /
$
* This includes the gross rental income less any property expenses (not including loan repayment)
Cash / fixed interest assets
You have no cash/fixed interest assets You choose not to provide these details now.
Description
Owner
Market
value $
Interest
rate %
Maturity
date
Retain
1 2 Joint Other
Criticbank Account 1,200 0.001% N/A
Page 29 of 35 For educational use only.
Managed Investments
This section is to collect details on any existing managed investments you have so we can consider
them as a part of our advice to you. You can give me current statements rather than completing the
tables below.
Owner
Product/Investment
options
Balance
Type of
investment
No.
of
Units
Regular
savings /
drawdown
pa
Income-
re-
invested
1
2
Joint
Peter and Fred have advised that they don’t have any existing managed funds
$
Description 1 2 3
Market value as at date / / / / / /
Purchase price ($)
Purchase date / / / / / /
Geared Yes No Yes No Yes No
Retain Yes No Yes No Yes No
Statement(s) attached Yes No Yes No Yes No
Page 30 of 35 For educational use only.
Investment planning considerations This section captures information about any concerns you have in relation to investment planning and
any specific issues you would like to address.
Client 1 Client 2
Investment timeframe
How long would you be willing to
invest your money for, before you
would need to access it?
< 2 yrs 2 – 3 yrs
3 – 5 yrs 5 – 7 yrs
> 7 yrs
< 2 yrs 2 – 3 yrs
3 – 5 yrs 5 – 7 yrs
> 7 yrs
Investment preferences
Do you prefer direct (shares) to
managed investments?
Yes No
Not sure – need advice
Yes No
Not sure – need advice
Do you have any issues with respect
to environment, social or ethical
standards that you would like me to
consider in providing you with
investment advice?
If yes, please give details.
Yes No Yes No
Do you prefer any investments?
If yes, please give details.
Yes No Yes No
Are there any investments you wish
to avoid?
If yes, please give details.
Yes No Yes No
Are there any circumstances you
know of which will effect your
financial situation in the future e.g.
inheritance, change of job, moving
house?
If yes, please specify
Yes No
No certain plans at this stage however Peter and Fred are mindful they may soon receive John’s superannuation money.
Capital losses
Do you have any unused capital
losses from previous years?
If yes, how much?
Yes No $
Yes No $
Notes:
Page 31 of 35 For educational use only.
Estate planning
This section collects information on your existing estate planning situations which may influence the
advice we provide you.
Wills and Testamentary
trusts
Client 1 Client 2
Do you have a Will? If yes,
provide details:
Yes No
Yes No
Last updated
Name of Executor
Do you have a testamentary
trust provision?
If yes, who is the trustee?
Yes No Yes No
Power of Attorney Client 1 Client 2
Do you have a Power of
Attorney? If yes, provide
details:
Yes No
Yes No
Type of Power of Attorney General Enduring General Enduring
Who is the person named as
your Power of Attorney?
Date of execution
Notes:
Page 32 of 35 For educational use only.
Appendix 1 – Peter’s Super Statement Summary
Peter has $30,000 invested across the following 3 super funds with existing Life, TPD and Income cover as shown: Peter’s current Superannuation Funds position:
Alpha Beta Omega
Current Investment (Defensive / Growth)
Growth Plus (30 / 70)
Easy (80 / 20)
Start (70 / 30)
Amount $3,000 $17,000 $10,000
Investment Fee 0.9% 0.8% 0.2%
Investment Return – 1yr 3.8% 2.1% 3.6% – 2yr 7.5% 4.1% 3.7%
Existing Insurance: $900,000 (life) $900,000 (tpd)
–
– – –
– – –
Available investment options within Peter’s Superannuation Funds:
Product Research Findings:
Alpha Beta Omega
Available Options: 4 4 4
Option 1 (Defensive / Growth) Investment Fee
Safer (95 / 5) 0.3%
Simple (95 / 5) 0.6%
Start (70 / 30)
0.2%
Option 2 (Defensive / Growth) Investment Fee
Builder (70 / 30)
0.7%
Easy (80 / 20)
0.8%
Progress (45 / 55)
0.5%
Option 3 (Defensive / Growth) Investment Fee
Grower (50 / 50)
0.8%
Focussed (30 / 70)
1.2%
Develop (35 / 65)
0.7%
Option 4 (Defensive / Growth) Investment Fee
Growth Plus (30 / 70)
0.9%
Maximise (0 / 100)
1.9%
Grow (30 / 70)
0.8%
Minimum account Balance
$1000 $1000 $500
Life Cover (max available)
Up to $5m Up to $4.5m Up to $3m
TPD Cover (max available)
Up to $5m Up to $4.5m Up to $3m
Income Cover (max avail.)
to $20k p.m. to $25k p.m. to $15k p.m.
Premiums ($ p.a):
Life (per $10K) $7 $6 $8
TPD (per $10k) $6 ¤ $5 $7
I.P. (per $1k pm) $102 $110 $132
Binding Nomination available
Yes Yes Yes
Page 33 of 35 For educational use only.
Appendix 1b – John’s Super Statement Summary
Annual Statement – Public Trust Super
_________________________Your Details__________________________
Statement Date: DD/MM/2018 Investor Services: 1300 ******
Name: John Bolands Account number: 123456
Mailing Address: 11/32 Harriette Street RANDWICK NSW 2031
Sex: Male
Date of birth: 15/12/1961
TFN Status: Supplied
Name of Employer: Coogee Council Works
Date commenced employment: 01/07/2001
Date joined plan: 01/07/2001
Eligible Service Date:
Salary: $120,000
Category of membership: Retired at 1/1/2018
Choice of Fund: 50% Balanced
Insurance: none
Total Super Balance: $300,000
Preservation Components: 100% Preserved (P)
Tax Component 100% Untaxed Benefit
Page 34 of 35 For educational use only.
Appendix 2 – Economic Assumptions There are a number of important assumptions we make in formulating this advice. These assumptions are
outlined in the table below. These assumptions are also used to calculate the future projections and
cashflow analysis that may be included with this advice.
Assumptions
Projection start date 01 July 2018
Indexation rate (CPI) 2.5% per annum. It is applied to all expenses annually.
AWOTE index rate 3.5% per annum. It is applied to annual “salary/income” when not otherwise specified..
Income received Investment earnings are assumed to be received annually.
Cost of living Indexed by CPI and recorded in the year of expected outlay.
Taxation Current tax rates have been used. The income, capital gains and superannuation tax rates are assumed to remain constant.
Superannuation Earnings taxed at 15%.
Centrelink/DVA Eligibility criteria and entitlements are assumed to remain constant.
Fees Upfront fees taken into account are entry fees and planner servicing fees.
Ongoing fees taken into account are management fees / MERs and planner servicing fees.
However the financial analysis does not take into account any fee- related tax deductions or GST credits that may be available from the products.
Projected Returns* Income* Growth*
100% Cash 3.6 0
30% Growth 3.3 1.7
50% Growth 3.4 2.6
70% Growth 3.3 3.6
85% Growth 3.3 4.4
100% Growth 3.2 5.2
*These are the long term nominal rates of return.
Page 35 of 35 For educational use only.
Appendix 3: Insurance premium rates for non-super policies Default insurance premium rates for standard lives*.
Age
next b-
day
Annual premium rate per $1,000
sum insured (*IP benefit is
monthly)
Age next b-
day
Annual premium rate per $1,000
sum insured (*IP benefit is monthly)
Death TPD Trauma *IP Death TPD Trauma IP
16 41 1.00 1.07 3.5 328
17 42 1.02 1.09 3.7 338
18 43 1.04 1.11 3.9 348
19 44 1.06 1.13 4.1 358
20 45 1.08 1.15 4.3 368
21 46 1.10 1.17 4.5 378
22 47 1.12 1.19 4.7 388
23 48 1.14 1.21 4.9 398
24 49 1.16 1.23 5.1 408
25 50 1.18 1.25 5.3 418
26 51 1.20 1.27 5.5 428
27 52 1.22 1.29 5.7 438
28 53 1.24 1.31 5.9 448
29 0.76 0.83 1.1 208 54 1.26 1.33 6.1 458
30 0.78 0.85 1.3 218 55 1.28 1.35 6.3 468
31 0.80 0.87 1.5 228 56 1.30 1.37 6.5 478
32 0.82 0.89 1.7 238 57 1.32 1.39 6.7 488
33 0.84 0.91 1.9 248 58 1.34 1.41 6.9 498
34 0.86 0.93 2.1 258 59 1.36 1.43 7.1 508
35 0.88 0.95 2.3 268 60 1.38 1.45 7.3 518
36 0.90 0.97 2.5 278 61 1.40 1.47 7.5 528
37 0.92 0.99 2.7 288 62 1.42 1.49 7.7 538
38 0.94 1.01 2.9 298 63 1.44 1.51 7.9 548
39 0.96 1.03 3.1 308 64 1.46 1.53 8.1 558
40 0.98 1.05 3.3 318 65 1.48 1.55 8.3 568
* The premium rates set out above are annual premium rates for “standard lives” where no loadings or occupational factors apply. Rates
applicable to non-super policies. Lum sum cover rates are per $1,000 of cover, Income cover rates are per $1,000 of monthly benefit
CASE STUDY USE ONLY, NOT INDICATIVE RATES
