Financial Planning for Brendon McDougall

Part B detailed template instructions
Client's name: Brendon McDougall
Date of contact: 1 April 2019
Re: Initial Appointment
FSG and adviser profile
Brendon was handed Financial Services Guide (FSG) version 5 012019 and my Adviser
Profile at the interview on 1 April 2019. The FSG was explained to him.
Scope of advice
The SOA will provide advice on:
 the achievement of wealth creation and lifestyle goals;
 personal insurances i.e. life, total & permanent disability (TPD), income protection
(IP), trauma and private health insurance;
 superannuation and retirement planning (including before and/or after-tax
contributions);
 estate planning; and
 any social security and taxation planning considerations (where relevant).
The SOA excludes any budgeting and cash flow analysis. Client to be advised on the risks of
not receiving advice in these areas.
Current situation
Your personal profile Brendon McDougall
Date of birth 5 Oct 1966
Current age 52
Marital status Single (Widowed)
Residency Status Australian Resident
Residential address 15 Surf Street, Mermaid Beach
Telephone [phone]
Email address [e-mail]
Employment status Employed
Dependents / Children Current age & date of birth
27 years; 1992
24 years; 1995
Your health
Current health Healthy
Pre-existing medical conditions? No
Member private health fund 176000
Smoker? No
Family history considerations? Lung Cancer (father side)

Lifestyle Assets Value
Property $ 700.000
Car $ 20,000
Motor Boat $ 35,000
Home content $ 30,000
Subtotal $ 785,000
Financial Assets – Non-Super Value
cash $ 37,000
Subtotal $ 37,000
Financial Assets – Super Value
Best Super $ 212,000
Master Super 36,000
Subtotal $ 48,000
Assets Total $ 860,000
Liabilities Limit Amount
outstanding Interest rate Repayment
Credit Card $ 10,000 $ 2,000 20% $ 2,400
Liabilities Total $2,400
Net Worth (Assets – Liabilities) $ 857,600
Income $
Salary $ 104,000
Income Total $ 104,000
Expenses – N/A for this assignment
Estimated Cash Surplus / (Deficit) per month $x
INSURANCE
Owner Insurance
Type
Insurance
Provider
Benefit
Amount
Waiting
Period
Benefit
Period Premiums
Super fund Life
protection
Master
Super
fund
$ 126,000
Up to 70
years of
age
Super Fund Total and
Permeant
Disability
Master
Super
fund
$ 50,000 Up to 60
years of
age

(TPD)
Estate planning
Do you have a Will? Yes
Provision for testamentary trust
Do you have a Power of Attorney? Yes
Type / Attorney’s name Zora
Binding Death Nomination? No
Potential issues / special consideration
The potential issues and special considerations which can be recognised from Brendon’s
case is effectively portrayed below:
 Brendon would be requiring appropriate savings in order to ensure that at the
time of retirement he would be able to maintain an appropriate standard of
living. Therefore, there is a requirement for assessing the two-superannuation
funds which is maintained by him
 In addition to this, he needs to plan for a sum which needs to be kept aside in
case of his death or illness so that the family is able to pay their bills.
 Brendon also wants to contribute to his daughter wedding for which he would
need $ 10,000 in order to meet the expenses of the wedding.
 In addition to all these, Brendon desires to enjoy a vacation with friends in Las
Vegas which would after his retirement. Plus, he also wants to maintain a
comfortable standard of living post his retirement.
Objectives
 Set up an appropriate superannuation funds so that the established goals and
objectives which is being pursued by Brendon. In addition to this, the superannuation
fund would also provide appropriate coverage for Brendon in terms of insurance
coverage requirements.
 Set up an investment fund so that a sum of $ 30,000 can be provided to each of his
Children, Jason and Ashleigh so that they can purchase their own house in future.
 Ensure that the children are financially looked after in case of death of Brendon or
illness.
 Provide $ 10,000 to the wedding requirements of Ashleigh which would take place in
the next few months. This is considered to be a high priority need which needs to be
fulfilled.
 Have a retirement holiday trip with friends to Las Vegas with all the comforts of a
holiday included in the same. The anticipation of Brendon is that he would be
requiring an amount of $ 25,000 for meeting all the needs which would be required at
the time of the vacation.
 Brendon also needs a proper insurance and estate planning so that his assets and
funds can effectively transfer to the nominee which is set in the will. Therefore,
Brendon would be requiring review of the current insurance and estate plan.
Risk profile
 As per the analysis of the risk profile of Brendon, it is clear that Brendon follows a
conservative approach which requires him to make investments in defensive assets.