Comprehensive Financial Plan for Peter and Lisa Clarke Family

This report presents a comprehensive financial plan for Peter and Lisa Clarke, addressing their current financial position, objectives, risk profile, and recommended strategies for investment and retirement. It covers various aspects including assets, liabilities, income, expenses, existing insurance, and superannuation. The plan outlines short, medium, and long-term goals such as minimizing tax, paying off mortgages, accumulating wealth for retirement, and funding their children's education. The recommended investment strategy aims to generate a sustainable income stream while managing risk, with considerations for Peter's inheritance and existing investments. The report also includes disclosures and a disclaimer, ensuring transparency and adherence to ASIC guidelines, offering a roadmap for the Clarkes to achieve their financial milestones and secure their future.

Running head: INDIVIDUAL FINANCIAL PLANNING
Individual Financial Planning
Name of the Student:
Name of the University:
Author’s Note:

1
INDIVIDUAL FINANCIAL PLANNING
Table of Contents
Covering Letter................................................................................................................................3
Executive Summary.........................................................................................................................5
Introduction......................................................................................................................................5
Current Position...............................................................................................................................6
Personal Details...............................................................................................................................6
Dependents......................................................................................................................................7
Assets and Liabilities.......................................................................................................................8
Income.............................................................................................................................................9
Expenses........................................................................................................................................10
Existing Insurance.........................................................................................................................10
Objectives......................................................................................................................................11
Risk Profile and Asset Allocation..................................................................................................13
Risk Profile and Asset Allocation..................................................................................................13
Recommended Financial Strategy.................................................................................................18
Recommended Investment Strategy..............................................................................................19
Implementation..............................................................................................................................20
Disclosures.....................................................................................................................................21
Disclaimer......................................................................................................................................21
Bibliography..................................................................................................................................23

2
INDIVIDUAL FINANCIAL PLANNING

3
INDIVIDUAL FINANCIAL PLANNING
Covering Letter
To Peter and Lisa Clarke
Address: 25 Ashington Dr Warners Bay NSW 2282
Dear Peter and Lisa,
I am highly grateful that you have given me the privilege to serve you with your financial
consultations and therefore accepting my offering to come to this face to face meeting so that I
would be able to give out effective suggestions with respect to your financial activities. the
recommendations that would be provided to you would be on the basis on the information that
you have given me and I am sure that these suggestions would be helpful for your future life.
The information that I would provide would be helpful to you in undertaking future investments
so that you can earn effective level of returns and income from the investments. This would
enhance your life and secure life post retirement.
The responses you have given through the Fact Finder and the questions related to the risk
profile has been of great help as I have been able to attain greater level of knowledge through the
same with respect to your present objectives and goals and the present condition and your notion
towards risks, income returns, security and volatility.
The suggestions and the outcomes that would be collected can be utilised in order to construct
your Statement of Advice. This document will be a record that can be used for the purpose of
suggestions even in the future course of time in order to attain your goals and objectives that is
even inclusive of the interests and the fees that are related to the advice.

4
INDIVIDUAL FINANCIAL PLANNING
If there are any changes in the lifestyle with the transformation of time, then advices can be
provided in the future as well which would be useful in maintaining a secured and safe lifestyle.
Hence, I am looking forward to come to your assistance with other suggestions and consultation
with respect to the plans and strategies in order to provide you extensive and sustainable
services. All the suggestions and the advices that will be provided to you will be based on the
ASIC guidelines.
Regards
Malcolm Starc
Signature
Financial Consultant

5
INDIVIDUAL FINANCIAL PLANNING
Executive Summary
The summary provides an overview that would be helpful to the client in understanding
the recommendations and the suggestions that would be given out to them. The overview is
actually the present condition, the objectives and the aims and the plans and guidelines that
would be recommended in order to assist the client to attain their future objectives and goals.
The best result can be given with the incorporation of the strategies. The client would be
requiring knowledge and therefore by reading the executive summary, they would be able to
attain better knowledge about the suggestions that have been given out to them and thereby able
to understand whether aims and goals have been reached. There is sufficient data which would
assist the client to take effective decisions by looking at the risks that they may undergo. The
fees and the charges that are related to SOA are even reported. The data that has been provided
to them will be written in a clear and lucid language with the unavailability of expressions and
therefore is ideal to their degree of the financial knowledge.
Introduction
The introduction of the paper would address the client about the aspects that would be
covered in the SOA and accordingly the advices and the suggestions that would be provided to
them on the basis of their plans and objectives in order to help the clients reach their financial
milestones. The SOA would cover the areas like the insurance, superannuation, cash flow
planning, investment planning and estate planning for the couple. The advices would even
include the other non-financial aims and objectives of the couple that would include the securing
their life even after retirement and assisting their dependent children to undergo college and
support them till they become independent. The clients would be made aware of the risks and the

6
INDIVIDUAL FINANCIAL PLANNING
challenges they would face with respect to these issues and thereby assisting them to create
contingency and a buffer in order to mitigate these risks in an effective manner.
Current Position
By analysing the current scenario of the couple, it is seen that Peter and Lisa are married
and have their own house and have two dependent children who are aged 15 years and 12 years
respectively Peter works full time and on the other hand Lisa works part time. They both have
superannuation contribution. The couple have two properties out of which they reside in one of
them and the other property has been used for investment purposes and therefore they receive a
rent out of it. Both these properties have existent mortgages and they have the intension of
paying off the mortgages before they start their retirement life. The couple are near their
retirement age and therefore they are seeking for advices related to making additional
investments and along with that make changes in their existing investments so as to receive the
best results of their investments. The money that Peter has received from his uncle’s inheritance
would even be used for the purpose of investment and in such a manner that they receive
effective level of returns without even having to pay for excess taxes. Their living expenses are
moderate and therefore are not concerned with the money they are receiving from their
superannuation account.
Personal Details
Client 1 Client 2
Title Mrs Mr
Surname Clarke Clarke
Given Name Lisa Peter (Pete)

7
INDIVIDUAL FINANCIAL PLANNING
Salutation Mrs Mr
Home Address 25 Ashington Dr
Warners Bay NSW 2282
25 Ashington Dr
Warners Bay NSW 2282
Business Address Not applicable Not applicable
Contact Phone [phone] (02) 4958 7598
Marital Status Married Married
Age 41 43
Health Minor back injuries but otherwise good Good
Employment
Status
Employed (part-time) Employed (full-time)
Occupation Civil Engineer (degree-qualified) Business Services Accountant
Employer KR Engineers Mindful Professional Services
Sex Male X Female X Male Female
Smoker X Yes No Yes X No
Anticipated
Retirement
Would like to retire at a similar time to
Peter (around age 63)
Ideally retire at approximately age
65.
Dependents
Name Dependant Age Dependent Until
Ashlee Clarke Daughter 15 Age 22
Cameron Clarke Son 12 Age 22

8
INDIVIDUAL FINANCIAL PLANNING
Assets and Liabilities
Asset Value Liability Ownership Notes
Principle Residence
(Warners Bay
property)
$963,000 $220,000 Joint Purchased property ten years ago
with initial mortgage of $700,000.
Mortgage principle & interest rate of
3.63%. Peter and Lisa are making
minimum mortgage repayments.
Mortgage Offset $150,000 $0 Joint Lisa is concerned if this is the best
use of these funds that accumulated
over the last few years.
Vanguard ETF $37,500 $0 Peter Australian shares ETF.
Investment Property
(Wallsend)
$450,000 $268,000 Joint Minimum mortgage repayments.
Interest rate 3.5%.
Home Contents $65,000 $0 Joint Estimated value.
Motor Vehicles $35,000 $0 Joint No finance, 2013 Mazda 3 (Pete)
and 2016 Holden Barina (Lisa).
Uncle’s Inheritance
(Funds available for
investment)
$250,000 $0 Peter Peter’s uncle recently passed away
recently. Pete would like to invest
these funds.
Bank Accounts
(Cash on hand)
$42,000 $0 Joint Westpac bank accounts.
Australian Super
Account
$319,875 $0 Peter Invested in pre-mix Balanced option
AMP Super Account $225,656 $0 Lisa Invested in pre-mix Conservative
asset allocation, largely invested in
cash. Admin fees are very high $300
p.a.

9
INDIVIDUAL FINANCIAL PLANNING
REST Super Account $15,663 $0 Lisa Lisa is not sure what this is invested
in and has not made contributions to
this account since she was working
in retail while she was at uni.
CBA Credit Card $0 $15,342 Peter Peter makes minimum repayments.
Interest rate 18%. $50,000 limit.
CBA Credit Card $0 $0 Lisa Balance repaid in full monthly.
Income
Income Value Frequency Ownership Notes
Salary (Part-time) $145,000 Annual Lisa Lisa receives this for working 4
days/ week.
Salary (Full-time) $130,000 Annual Peter Peter is comfortable in his current
job.
Dividends (Est at 4%
p.a.)
$1,500 Annual Peter Vanguard dividends.
Rental Income $400 Weekly Joint Wallsend rental property income.
Interest (Est at 2% p.a.) $736 Monthly Joint Interest on all cash investments.

10
INDIVIDUAL FINANCIAL PLANNING
Expenses
Expense Value Frequency Ownership Notes
Living Expenses $105,000 Annual Joint Including mortgage repayments on
both properties.
Charitable Donations $6,000 Annual Peter Peter makes a monthly $500
donation to the Salvation Army.
Existing Insurance
Policy Benefit Life
Insured
Owner Notes
Linked Life & TPD $650,000 Lisa AMP Super Default with AMP super account.
Any occupation TPD.
Standalone Life $500,000 Peter Australian
Super
Default Australian super.
Standalone TPD $350,000 Peter Australian
Super
Own occupation TPD.
Income Protection $6,500/
month
Peter Australian
Super
Payable to age 60; 90 day wait.
Statement of Cash flow
Particulars Peter Lisa Total
Income
Salary $ 130,000 $ 145,000 $ 275,000
Rental Income $ 19,200
Interest $ 8,832

11
INDIVIDUAL FINANCIAL PLANNING
Dividend Income $1500
$ 1500
-
Total Income $ 131,500 $ 145,000 $ 304,532
Expenses $ -
Living expenses $ 105,000
Charitable Donations $6,000
Total Expenses $ 193,532
Net Income/ Taxable income $ 131,500 $ 145,000 $ 193,532
Tax Payable
$
39,559.63
$
43,259.63
$
82,819.26
Gross Tax Payable
$
39,559.63
$
43,259.63
$
82,819.26
Franking credit $ - $ -
Net income after tax
$
91,940.37
$
101740.37
$
110,712.74
Objectives
The couple have the intention of creating long term income creation by taking assistance
of which they would have a safe and secured lifestyle for their future and thereafter would not
have to think about their level of income once they retire. Risk is looked upon to be one of the
essential factors and therefore the couple are searching for investments that would yield the
returns they are looking for but would risk level would be moderate. The couple before they plan
to retire would look to pay off their existing mortgages for their two properties and accordingly
wants to sell the property that is given out on rent in Wallsend. They are even in the idea of
wealth creation with the help of which they would be able to generate money during their time of
retirement that would be equivalent to $60,000 to the current dollar value. The client even has
the idea of reducing their level of taxes wherever deemed possible. They want to continue the
donations that they undertake and for that to happen they require a stable return from their
income. The couple even wants to pay for the college fees for their children and accordingly
wants to attain significant amount of money with the help of which they would be able to pay for