1202AFE Financial Planning 1 Trimester 1: Wealth Creation Plan
VerifiedAdded on 2022/09/06
|3
|622
|27
Homework Assignment
AI Summary
This assignment solution for 1202AFE Financial Planning 1 addresses wealth creation and lifestyle recommendations based on a client interview. The solution provides strategies for two financial goals: a holiday and a dental practice. For the holiday goal, a short-term deposit in an AMP loan with an interest rate of 1.85% is recommended. The advantages include an attractive interest rate, while the disadvantage is the fund lock-in period. An alternative is a dedicated holiday savings account. For the dental practice goal, a managed investment fund option is suggested, specifically investing in Listed Investment Companies (LICs) and Trusts (LITs). The advantages include access to a diversified portfolio and professional management. The disadvantages involve high fees and tax inefficiencies. An alternative is long-term term deposits. The appendix includes future value calculations for both goals, demonstrating the financial planning process. This assignment provides a comprehensive approach to financial planning, considering both investment strategies and lifestyle goals.
1 out of 3