Financial Planning for Andrew Ferrell - Desklib

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Financial Planning

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Table of Contents
Statement of Advice...................................................................................................................3
What is it?..............................................................................................................................3
Summary................................................................................................................................3
SMART Goals and Objectives...................................................................................................3
Current Situation........................................................................................................................4
Risk Profile.................................................................................................................................5
Growth risk profile.................................................................................................................5
Strategies and Recommendations..............................................................................................6
Budgeting...............................................................................................................................6
Approved Product List of St George..........................................................................................8
Reference List............................................................................................................................9
Appendices...............................................................................................................................10

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Statement of Advice
What is it?
The statement of advice (SOA) records the financial advices to a company or the clients. The
financial advices that have been given to St George are recorded in the statement of advice.
The SOA is provided to the company under Corporations Act 2001. The particulars that are
not included in the SOA are all the particulars of the financial situation of the company. The
financial advice has been provided for the superannuation, expenses, income, loans and
insurance needs of Andrew Ferrell. The statement of advice includes the current
arrangements’ review and also the relevant recommendations for the required changes. The
law has been complied with while preparing the financial advice and it acts in accordance
with the interests of Mr. Andrew Ferrell in the best possible way.
Summary
We recommend Mr. Andrew that he repay all his debts at the earliest of time. The debts
would include the loan for his car, which is of $17,000 and the loan of finance card which
costing $10,000. Both these debts together cost him $1200 every month in the form of
interests only. The life insurance cover as well as the insurance of contents and
comprehensive car should be retained, and a replacement should be made for the insurance of
Total permanent disability (TPD). It was seen in the information of Mr. Andrew that his
savings account has $1000 every month. We recommend him to save this money in the form
of personal savings. The usage of credit card by him seem to be irrelevant and unnecessary to
us, as it is evident that the per annum income of Andrew is adequate enough for him to
manage his expenses. Hence, we advise him to completely stop of at least reduce the credit
card usage.
SMART Goals and Objectives
The goals and objectives of Mr. Andrew Ferrell are as follows:
 He wants to maintain a balance of $60,000 as his net income each year.
 Wants to maintain and establish a cash reserve for the end of each year with a balance
of $10,000.
 Aims at reducing his pending liabilities of finance card, car loan and credit card,
which are $10,000, $17,000 and $8,000 respectively.
 Targets at buying a home and change his old car in the next 5 years with his savings.
 Plans to maintain an allowance of $3,000 for annual holidays.

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 Looks forwards at minimising the tax expenses that he has been paying for the
employer superannuation funds, and also aims as boosting his superannuation
contributions.
 Wants to make sure that he has adequate funds in his Life and Total permanent
disability (TPD) insurance with the help of his existing superannuation funds.
Current Situation
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