Superannuation and Retirement Advice for Graham and Anna Sutton

Page1
SUPERANNUATION AND RETIREMENT ADVICE
Letter to Client
18 September 2018
Mr Graham Sutton and Ms Anna Sutton
1, White Ave, Wollongong NSW 2550
Dear Graham and Anna,
I, Jess Craig, Senior Financial Planner associated with All Out Financial Planning
welcome you to the boutique financial planning and advising company in NSW. I thank
you on behalf of All Out Financial Planning for giving us this opportunity to resolve
your financial situation and to offer our most professional and sincere advice for your
post-retirement financial needs. A copy of our valuable Financial Service Guide was
presented to you on your first visit to our office, I am sure you must have taken out
some of your time for studying it.
I assure you that our final Statement of Advice (SoA), which will be based on facts and
financial data provided by you, will meet your required future goals. We will make this
SoA appropriate for your post-retirement needs and will advise you sincerely about your
objectives, as specifically desired by you. I would like to reiterate that the SoA should
be considered as a personal financial advice which has been prepared to meet your
financial objectives. All information about our fees, commission and other interests or
associations helpful to your objectives has also been included in the SoA.
We are also providing you our Product Disclosure Statement (PDS) containing various
financial products which you may find purposeful. We can also arrange for you any
specific financial product that you would like to recommend. We are confident that
information provided in the PDS will not only guide you in making the right choice, it
will also help you in taking the right decision about the most suitable product.

Page2
Please note that since this SoA has been prepared on the basis of the data and facts
given by you, the outcome and impact of the SoA will depend largely on the
authenticity and correctness of that information. Hence, we request you to ensure that
the data and facts given by you are complete and accurate. We also request you to
assess this SoA’s appropriateness in relation to your personal circumstances, before you
decide to act upon the advice given in it.
I also have noted the latest development in your and Anna’s careers. This, along with
the fact that you are planning to make estate planning arrangements when you move to
Perth, is an important financial aspect worth considering and which is discussed in this
SoA. I also noted that you do not feel comfortable in discussing details of social security
entitlements, hence I have tried to explain them in easy terms. The most important
aspect which is of concern for you at this stage is about your and Anna’s income
prospects post-retirement. I have paid special attention to this issue by providing most
relevant advice in the SoA.
Since the financial assumptions, benefits and gains which I have discussed in the SoA
have a short life, the validity of my advice is limited to a three month period. To further
discuss your long term future financial position, my advice will be to arrange another
meeting once you have thoroughly studied the attached SoA. Please feel free in
contacting if any further clarification is required of me.
Looking forward towards a long association in the coming years,
Yours Sincerely,
Jess Craig

Page3
STATEMENT OF ADVISE
Executive Summary
Graham Sutton, a Mining Engineer by profession and his wife Anna
Sutton are seeking advice from an expert planning advisor about
managing their wealth for their post-retirement period which will be
nine years from now. Graham has plans start his own self-
managed super fund (SMSF) so that he can keep all their investments in
a composite investment plan earning them 6% net of taxes, fees and
charges. My advice to Graham and Anna is not to dispose off any of their
properties, which are giving them good income. With their current
investments in their own self-managed Super fund, giving them net of
6%. Their annual earning can be of $125,000 in the post-retirement
period and along with their super savings will add up to $2 million,
which at 6% net would give them $125,000 pa, which is more than they
plan to spend on post retirement living expenses.
Superannuation and
Retirement Advise

Page4
Table of Contents
Personal Details...............................................................................................................6
Financial Details..............................................................................................................7
Client’s Future Objectives..............................................................................................8
Client’s Financial Plan....................................................................................................9
Dividend Income..........................................................................................................9
01. Dividends Earned on Stock..........................................................................9
02. Dividends Earned on Funds.......................................................................10
03. Closed End Funds.......................................................................................10
Client’s Current Situation............................................................................................10
Graham’s Redundancy..............................................................................................10
Graham’s Superannuation........................................................................................10
Anna’s Superannuation.............................................................................................11
Investment Properties................................................................................................11
Graham’s & Anna’s Insurances...............................................................................11
Client’s Investment Planning.......................................................................................11
Interest income...........................................................................................................11
Other Safe Investment Options................................................................................12
01. Savings Bank Accounts...............................................................................12
02. Money Market Funds.................................................................................13
03. Government Securities................................................................................13
04. Real Estate Investment Trusts (REITs)....................................................13
05. Preferred Stocks..........................................................................................13
06. Retirement Income Funds..........................................................................14
High Yield Investments.............................................................................................14

Page5
Variable Investment Income.....................................................................................14
Guaranteed Investment Income...............................................................................16
Client’s Risk Profile......................................................................................................16
01. Conservative................................................................................................17
02. Cautious.......................................................................................................17
03. Moderate......................................................................................................17
04. Moderately Aggressive................................................................................17
05. Aggressive....................................................................................................17
Recommendation.......................................................................................................17
Client’s Strategy for Asset Allocation..........................................................................17
Client’s Estate Planning and Risk Management........................................................18
Conservative...............................................................................................................19
Moderate.....................................................................................................................19
Aggressive...................................................................................................................19
Client’s Cash Flow Projections....................................................................................20
Graham’s & Anna’s Retirement Plans........................................................................20
Anna’s mother Marie – Aged Care Considerations...................................................21
Advice on Goals and Strategies....................................................................................21
Goals to be achieved..................................................................................................21
Strategies Required....................................................................................................22
LIST OF REFERENCES..............................................................................................25

Page6
STATEMENT OF ADVICE
Personal Details
Graham Sutton and Anna Sutton, aged 53 and 51 respectively, were married some 25
years ago. They have two school going children, Sam, aged 15 years and Jodie, aged 13
years. Graham and Anna are keeping good health and are non-smokers. Both carry life
insurance from independent sources and also through their respective Super Funds.
Graham has been employed as a Senior Mining Engineer with BlueScope Steel for 26
years. He has been offered redundancy by BlueScope due structural changes in the
company and has already been offered employment in Pilbara Port Corporation in
Western Australia as Site Engineer on same salary. Anna, who has been devoting
herself to fulltime care of their two children, has also taken the offer of employment
from All Brains Inc. in Perth as Personal Assistant to the Development Manager of the
company and will be joining in three month time.
Presently aged 53 and 51 years respectively, Graham and Anna plan to retire when
Graham reaches 62 years of age. They are seeking professional advice about their post-
retirement life so that they lead a secure and comfortable future for themselves as well
as their children whom they wish to support till they attain age of 24 years.
Personal Details of Mr. Graham Sutton and Ms. Anna Sutton
Name Graham Sutton Anna Sutton
Date of birth 06 October 1965 18 September 1963
Family Self, Wife & Two Children Self, Husband & Two Children
Marital Status Married Married
Occupation Salaried Employee-Engineer Personal Assistant
Employer Pilbara Port Corporation All Brains Inc.
Date of Joining 01 November 2018 1 December 2018
Salary Income $195,000 per annum (Gross) $52,000 per annum (Gross)
Interest Income $2,500 (On-line Savings Account) $2,500 (On-line Savings Account)
Income from
Rental Property $53,400 (Gross) $15,600 (Gross)