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Running head: DFP3 ORAL ASSIGNMENT
DFP Oral Assignment
Name of the Student:
Name of the University:
Author’s Note:

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DFP3 ORAL ASSIGNMENT
Table of Contents
Section 1..........................................................................................................................................2
Section 2..........................................................................................................................................2
Issue No 1........................................................................................................................................4
Section 3........................................................................................................................................11
Section 4........................................................................................................................................11

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Section 1
Me: Hello Mr. Nathan. Meeting you after a long time
Nathan: Yes
Me: In the last conversation that we have you have highlighted several queries
Nathan: Yes, my wife and I have come up with various queries certain queries hence I wanted to
meet you personally.
You: Yes, I know of the issue hence I have come to meet you and I am aware of the fact that you
have a hectic schedule and you have to travel a lot to come.
Nathan: Yes, there is a long distance to travel. However, I don’t get tired due to my friendly
nature.
You: Since you are a sales representative, you must be knowing the trade-offs that are cost
benefit as well as the uncertainties that are prevailing in the market.
Nathan: Yes I know it.
You: let’s not waste more of your precious time and come directly to the context of the various
issues that can be discussed in order resolve the queries. However, it can be noted that various
advices that are to be given are related to your retirement planning and family issues. Hence, it is
to be confirmed that policies and plans are made in a manner that there is fulfillment of all your
future strategies. In addition to this, the future panning of your wife regarding her income is to be
discussed so that both of you have a secured and a stable life with full comforts.

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Section 2
Nathan: Would it be advisable for both of us to sacrifice the salaries? Can my wife Mary
sacrifice the salary at the time she will run her business? Why should she sacrifice more than
me?
You: Hello, thank you for scheduling this meeting with respect to the queries that you have. I
glad to hear to that the advice provided earlier has been able to satisfy you both. I know that
there are certain aspects that require additional assistance with the help of which all the matters
and concerns will be taken into consideration. There are several questions and issues are required
to be answered and accordingly each one of them will be addressed so that all your queries can
be met. The initial question that comes to mind has been that in the initial meeting I have
recommended both of you to sacrifice your salary. Sacrificing your salary will be beneficial for
both of you for your future savings and investment planning. According to the information
provided from your end, Mary has the plan of running her own business. Even though Mary
would run her own business, she would have sufficient income with the help of which she would
be able to sacrifice some part of her salary. Salary sacrifice is beneficial as with the help of this
money retirement strategy can be constructed. Retirement is a key aspect for both of you and
therefore the easiest processes that can be taken into consideration will be used with the help of
which the optimum amount of savings can be done. It has been found that salary sacrifice will
not have an impact on the business.
I have even advised Mary to sacrifice more mainly due to the fact that Nathan, you earn
more than from your profession with respect to Mary. According to your initial requirement, it is
known that both of you want to save money for retirement with the help of which you both can

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have a safer and stable life after retirement. As Mary will be starting her business later, her
extent of savings and income will not be high and therefore, it has been recommended that she
sacrifices more than you so that a balance can be maintained. In the initial period there would be
certain problems with respect to savings but this will be helpful in the development of the aspects
with the help of which retirement planning will be done in an effective manner. The use of this
strategy will be advantageous for both of you and after the explanation I hope you will be
satisfied.
Nathan: Why should I not contribute in splitting up the two accounts? What would you
recommend?
You: The issue that you have addressed has been with respect to the fact that why I have
recommended contribution splitting even in your two accounts. It is known that superannuation
will always be attacked and therefore it has been essential to construct plans and strategies with
the help of which development with respect to the future time period can be prepared. For a very
long time, I have seen that one of the essential strategies has been splitting the contribution. I
have come across of the fact that splitting the contribution and having two super accounts will be
more tax efficient rather than having a single account. In this manner, two baskets are created
that is filled with savings that can be used at the time of retirement.
In case both of you make use of the super between the preservation age and 60 years of
age, the initial $205,000 which have been withdrawn from the super will be tax free. This
amount will be known as the low-rate cap for the financial year. Being a couple, you two need to
take advantage of this dependency with respect to your individual scenarios.

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I feel one of the most essential aspect on which financial advices has been asked from
your end has been planning for your retirement with the help of which your suture life will be
secured and the current standard of living can be maintained as well. The maintenance of two
accounts and splitting the contribution in both the accounts will be therefore be beneficial for
you both as with the help of which you can take optimum advantage of the contribution. I feel
splitting has another advantage as well. It is seen that in case there are any issues in one of the
accounts, the other contribution in the other account would take care of the same and income
level for both of you can be maintained. I feel that the explanation with respect to this issue is
satisfactory enough so that queries, which were there have been resolved. In case there are any
such issues and queries are still there, I would be happy to provide you more suggestions with
the help of which you can safely implement these plans and strategies. I even have in mind to
provide with other strategies along with the changing time and desire.
Nathan: Can you recommend Mary regarding her inheritance of money into my account?
You: I have even come to know that there are other problems that you want to share as well. I
heard that Mrs. Mary is puzzled as she has been recommended to pay some of her inheritance
into your account Mr. Nathan. It is seen that inheritance contribution for Mary has been more
than yours and therefore in order to provide equal returns to both of you this is one of the best
strategies. It is seen that you are older than Mary and therefore the returns that you would claim
for will be lower than that of your wife. I have even found out that in order to balance the
account for both of you this is the best way possible. In this manner, both of you can have a
better and stable lifestyle. I have seen that Nathan as you have lower starting balance, it is
advisable to you that if some of the balances of Mary are given in your account, then in that case
most of the issues that are existent would be covered. One of the most key issues that you require

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has been increasing the future value of money and therefore the strategy that has been
recommended would be ideal. In the beginning, the returns may not be ideal for both of you but
in the long run this is one of the effective plans and strategies. I hope I am able to resolve the
issue and thereafter can make sure that you are able to attain your plans and policies. For the
purpose of retirement, it is essential that these strategies are put to use so that the optimized
returns are attainable.
Nathan: Can you explain the process of calculation of our projected account balances when I am
of the age 65? How reliable is this projection? It looks like we will exceed our $1.3m target?
Does this mean we have put too much money into our super?
You: In order to calculate the projected account balance that has been done for you there are
certain process that needs to be taken into consideration. The best way possible has been to
calculate the present value. Present value is looked upon as an amount that needs to be
maintained in the bank today in order to meet the expenses that would incur in the future. With
the help of this process a rough idea can be attained with the help of which the amount of money
that is required to be saved for the purpose of retirement and meet the future expenses can be
attained. I have done the same with the help of the income and the expense information that you
have given to me. With the help of the current information, I have created an anticipated annual
expenses and thereafter subtracted out of the fixed income sources that you have with respect to
the number of years you would survive. The mortality calculation is done by looking into the
kind of lifestyle you currently lead and the stress you go through. The amount that would be
saved within the coming time to the retirement date will be projected with the help of which the
estimated account balance has been attained. I would even like to inform you that the projections
that have been made are effective and ideal for you to simply due to the fact that I have reviewed

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all the information that you have provided and accordingly I have made the projections and
therefore I am pretty certain that my projections will be useful in the attainment of the goals that
you two have. Yes, the target of $1.3 million will be exceeded but this will not have an impact on
the plans and the goals that you have. No, you have not put too much in your super and the
amount that has been invested is moderate enough with the help of which the returns that you
will be receive at the time of retirement will be more than sufficient. I therefore feel that the
projections are ideal and you do not need to worry about these issues. In case of any problems, I
would be the one who would be handling the same.
Nathan: We have heard the government has passed new rules to allow retirees to contribute the
proceeds from selling their family home into super. We will want to sell our home for something
smaller when the kids leave home. Will this new strategy benefit us?
You: Yes I am happy to see your interest towards your investment plans and superannuation. I
glad to see that you are aware about the disclosure that has been given by the government. I
would like to inform you that the government has passed new rules that permits the retirees to
contribute the proceeds from selling their family home into the superannuation. At the current
time period, I do not feel that this is the right time to think on this plan. This is mainly due to the
fact that both of you are pretty young and therefore the process with the help of which the
retirement plan can be constructed with the current time period should be taken into
consideration. There is a lot of time for your retirement and so the process of salary sacrifice and
the other advices that have been provided should be incorporated and the concern that has been
asked for can be taken into consideration at the time of retirement.
However, with respect to query just for your concern, I would like to inform you that the
new rule plan can be incorporated after you retire and thereby can purchase a smaller house

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when your kids leave you. In this manner, your expenses will be curtailed as well with respect to
the maintenance cost of the house. This strategy will be beneficial for both of you and your
income source would increase as well. Therefore, you can incorporate this plan but only after
retirement.
Nathan: Can you explain why we need to meet with you every year when we have this
agreed plan?
You: This is a very important question that you have asked. You see that it is essential for us to
meet due to the fact that with the advent of time, there are chances that there may be political,
economic and financial changes, which may have an impact on the investment plans and
strategies that are existent. The changes are absolute and no one can prevent this. There are even
circumstances that due to certain other external factors the financial market can have an impact.
In this scenario, the expected returns can lower and the future earnings that was expected can be
impacted. In this scenario, it becomes vital for us to meet. In certain cases, you might have new
ideas and may even face problems. For instance, by consulting with your relatives and friends,
you may feel that the strategies that have been advised are not ideal and in such cases a meeting
will be helpful in resolving the case. Your interest and demand may even change with time and
then you may think of increasing your savings in order to increase your returns according to the
fund that you desire after retirement. In such cases, weneed to meet so that we can change your
investment plans accordingly. A meeting once a year is essential as this not only lets us discuss
about your investment but maintains a healthy personal relationship among us as well. Meeting
once a year will be helpful in the development of better investment policies and in case new
plans and policies are incorporated then can be conveyed to you as well so that accordingly
amendments in the current plans can be done as well. Therefore, I feel meeting once a year will

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be beneficial for both of us. I hope all the issues that you have in mind have been taken care of
and in case of any other query I would like to be in your assistance at any point of time.
Section 3
You: I have considered and dealt with all the issues related to your future goals and plans. Do
you agree with my options or do you need to revise any of them?
Nathan: As per the recommendation and information given by you at this time and situation, I
don’t find any scope where I would need a revision. However, after analyzing your suggestions
in due course if I come up with some more queries I may get back to you. I am really glad with
your suggestions and expect to see you soon if I have any doubt.
You: I would be glad to help.
Section 4
You: I am thanking you for the advice along with the opportunity and time and share the
experience that can be of any help to you for your future issues and plans.
Nathan: I am highly obliged.
You: did I clear all your queries?
Nathan: Yes you have cleared all my doubt. However, I cannot remember of any issue that is
missed.
You: I would be always glad to see you and recommend and resolve with better and new ideas
and policies. I am also available over the phone.

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