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
Jason 27 years; 1992
Ashleigh 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 $ 104,000
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
 As per the case which is shown, Brendon wants to continue working as long as he
can but would like to retire before the age of 70 years. Brendon wants to work till 65
years but if there is a need to continue with the work then he would prefer 3 days’
work in a week until permanent retirement by the age of 70 years. This is to be done
for the purpose of supporting the lifestyle he wants for his post retirementlife.
Objectives
 Ensure that children are financially after in case of death or illness in future.
 Allocate a sum of $ 30,000 each for Jason and Ashleigh so that they can afford their
own accommodations in future.
 Provide $ 10,000 for wedding expenses for Ashleigh which was promised to her.
 Setting up an appropriate superannuation fund for effectively meeting the objectives
and goals which is established by Brendon. In addition to this, provide appropriate
insurance coverage to him as well
 Have a retirement holiday trip with friends in Las Vegas which would be requiring $
25,000 and the same would be including all the luxuries of a vacation.
 Reviewing the insurance and estate planning needs that is something that Brendon
would be requiring to set right due to the will which is created by him.
Risk profile
 The risk profile analysis which is conducted for Brendon shows that he is a
conservative investor who would like to have peace of mind more than higher returns
which can be available to him if he undertakes more risks. Therefore, Brendon will be
maintaining more of cash balances and fixed interest within his profile for
appropriately managing the risks. Brendon would also undertake investments in
moderately risky investments for the purpose of achieving capital growth.
Wealth creation & lifestyle recommendations – outside superannuation
1. Goal [daughter’s wedding]
Recommended strategy:
The most appropriate strategy which can be followed for maintaining appropriate funds
for daughter weddings is by saving the required amount in term deposit. Brendon can