Financial Advice for Andrew Ferrell - Statement of Advice

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Dear <<insert name>>,
Discussion Paper – Statement of Advice
The financial advices to St George have been recorded in this document. This document is
known as a Statement of Advice (SOA) which has to be provided under the Corporations
Act 2001. The advice is regarding the loans, superannuation, income, expenses and
personal insurance needs of Mr. Andrew Ferrell. A review of the existing arrangements as
well as the significant suggestions for changes have been included. This financial advice
complies with the law and acts in the best interests of Mr. Andrew and the Company.
Reasons for this advice & its scope
Mr. Andrew aims at maintaining a net income of $60,000 every year. He also looks forward at
establishing and maintaining an annual cash reserve of $10,000 at the end of every financial year.
He has pending liabilities and obligations in the form of finance card of $10,000, car loan of
$17,000 and a credit card debt of $8,000. He wants to reduce his debts at the earliest of time.
According to Mr. Andrew, he has been spending more than needed, hence he wants his budget to
be reviewed. He also has some goals to be accomplished within the next five year, which are, buy
a home with his savings and change his car. Mr. Andrew also plans of maintaining an annual
holiday allowance of $3,000. He has been paying a lot of tax for his employer superannuation fund.
In order to minimise this expense, he wants to boost his contributions to the superannuation.
Finally, he targets at ensuring sufficient insurance of Life and Total Permanent Disability within his
present funds of superannuation.
Prepared on October 2018 and valid for 45 days. For educational use only. Page

What my advice does not cover
All the aspects of the company’s financial situation have not been included. We have not been able
to undertake a complete financial analysis covering your full personal and financial objectives as
we have not been given the following information:
It is recommended for Mr. Andrew to repay all his loans, including the car loan of $17,000 and the
finance card of $10,000 since they together cost him $1,200 per month. The insurance for the
comprehensive car and contents should be retained along with the insurance cover for the Life,
whereas the insurance for Total permanent disability (TPD) should be replaced. Mr. Andrew is also
recommended to save at least $1,000 as his personal savings each month. Since his per annum
income are adequate and significant enough, the usage of credit card should be reduced.
The strategies in this document are for discussion purposes only and are not intended for
you to act on without further advice.
Yours sincerely
Prepared on October 2018 and valid for 45 days. For educational use only. Page

Your personal and financial position
Personal
Name Andrew Ferrell
Gender Male
Nationality Australian
Date of Birth 30/03/1985
Marital Status Single
Primary Health cover Yes
Employer Wollongong Council
Work status Fulltime
Occupation Town Planner
Income $95,000 p.a.
Financial
Name Andrew Ferrell
Income $95,000 p.a.
Total Assets $71,000
Total Liabilities $35,000
Total interest payable per month $1,200
Dividends received $950
Annual expenses $53,900
Annual savings $41,100
Assets
Description Value
Home $40,000
Car $25,000
Savings Account $1,000
Share Portfolio $5,000
Total $71,000
Liabilities
Description Value
Car Loan $17,000
Finance Card $10,000
Credit card debt $8,000
Total $35,000
Insurances
Description Value
Contents $20,000
Comprehensive Car $20,000
Life and Total Permanent Disability $125,000
Prepared on October 2018 and valid for 45 days. For educational use only. Page