Financial Planning 1: Wealth Creation Working Paper - Tristen & Zoey

This financial planning working paper presents a comprehensive analysis of Tristen Zimmerman and Zoey Smith's financial situation, goals, and objectives based on their initial interview. The paper outlines the scope of advice, including wealth creation, insurance, superannuation, and tax planning, while excluding areas like budgeting and estate planning. It details their current assets, liabilities, income, and expenses, along with their risk profile. The core of the paper focuses on strategic recommendations for achieving their goals, which include wealth creation (through SIPs and recurring deposits), home deposit savings, and superannuation optimization. It also covers wealth protection strategies like life, TPD, income protection, trauma, and private health insurance. The paper analyzes the advantages, disadvantages, and alternatives for each strategy, supported by future value calculations, and provides a clear roadmap for Tristen and Zoey to achieve their financial aspirations.

Financial Planning 1
Working paper
FSG and adviser profile
Tristen and Zoey were handed Financial Services Guide (FSG) version 5 010221 and my
Adviser Profile at the interview on 1 May 2021. The FSG was explained to them and they
both agreed to proceed.
Scope of advice
The SOA will provide advice on the achievement of wealth creation and lifestyle goals,
personal insurances (that is life, total & permanent disability (TPD), income protection (IP),
trauma and private health insurance), superannuation (including salary sacrifice, personal
tax-deductible contributions and/or after-tax contributions) and taxation planning where
relevant.
The SOA excludes any budgeting and cash flow analysis, social security and estate
planning. Clients advised on the risks of not receiving advice in these areas.
Current situation
Your personal profile Tristen Zimmerman Zoey Smith
Date of birth 22 April 1996 2 February 1997
Current age 25 24
Marital status De-facto De-facto
Residency Status Australian resident Australian resident
Residential address 32 Wattle Street, Victoria point
QLD
32 Wattle Street, Victoria point
QLD
Telephone [phone] 254 513
Email address TristenZimmerman@hotmail.c
om [e-mail]
Employment status Employed full time Employed full time
Dependents Current age & date of birth
0 0
Your health Tristen Zimmerman Zoey Smith
Current health Pretty healthy Pretty healthy
Pre-existing medical conditions? None None
Member private health fund Bupa None
Smoker? No No
Family history considerations? Prostate cancer Heart attack
Lifestyle Assets Owner Value
Car Tristen $18,000

Financial Planning 1
Car Zoey $12,000
Home contents Joint $20,000
Subtotal $50,000
Financial Assets – Non-Super Owner Value
Online saver account Tristen $5,000
Joint high interest account $17,000
Subtotal
Financial Assets – Super Owner Value
Sunsuper -Lifecycle accumulation fund Tristen $37,260
Hostplus -Balanced accumulation fund Zoey $35,890
Subtotal $73,150
Assets Total $
Liabilities Owner Limit
Amount
outstandin
g
Interest
rate
Repaymen
t
Credit card Zoey $5,000 $800 22% $880 /
mth
Liabilities Total $800
Net Worth (Assets – Liabilities) $800
Client Income $
Tristen Full-time Electrician with Sparky Electrical + 9.5%
Super $65,000
Zoey Full-time Planner with the Redlands City Council +
12% Super $50,000
Income Total $115,000
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
Both
Comprehen
sive car
insurance
Budget
direct
Tristen
Private
health
insurance
Bupa
Tristen Sunsuper $100,000
$100,000

Financial Planning 1
Potential issues / special consideration
 x
Objectives
 x
Risk profile
 x
Wealth creation & lifestyle recommendations – outside superannuation
1. Goal[wedding/honeymoon]
Recommended strategy:
 SIPs (Systematic investment Plan)
Advantages of strategy [reasons why]
Protected from market changes -
Perhaps the most important and surprising benefit of SIP is that it saves you from a
market vacation.
The highs and lows always appear in business segments, but still on the off chance that
you're not doing SIP, that means you're actually investing in all of the good and bad
times in the market.
So, in the end, your purchase costs are considered an external value. Furthermore, it
may happen that you are not supported for at least 15-20 years.
Small investment -
In India SIP can be done with at least 1000. Plus, trust me, it's not very close to our₹
standard RD estimate.
Most importantly, increase your assets by £ 1000 across numerous organizations by
expanding your portfolio with your shared fund manager.
You can also start and SIP in ELSS classification with 500. I recommend that you₹
support SIP in ELSS. Trust me as profitable as all other profit options.
Freedom of evaluation -
This is a positive development from the Government of India that you will receive a cost
exception on the opportunity not to contribute resources to ELSS which is a value
savings plan.
Expert opinion -

Financial Planning 1
There is no compelling reason to pay large sums of money to the experts. Because your
1000 is led by industry experts with amazing experience.
So you can at least expect your money to be in good hands from the rest of the groups
of people who put themselves directly in a financial exchange. However, when you
deposit the funds into SIP, as I mentioned your money, the fund is divided into 50-100
shares. So your risk will be completely less than the rest of the group.
Disadvantages of strategy
Lack of resources
Incorporating resources into systematic investment plans would allow you to book in
advance or post-date cheddar as appropriate. However, from time to time, if a
satisfactory balance is not maintained, the check will be returned or ECS guidance will
also be disregarded. The best way is to make sure the balance in the table is consistent.
Magazine from the asset house
This may not happen very often, however, it may happen that the asset company forgets
to forget the emails you sent.
One of the responsibilities of SIP is that it is sold out, because you will benefit from it on
a regular basis. From time to time, the average cost may never work. Imagine a situation
where the lender is baffled.
Alternatives considered
 Fixed deposit
 Recurring deposit
2. Goal[house deposit]
Recommended strategy:
Save upto 20% in recurring deposit, Repetitive sources are as old as investment money
for the financial client. Before the country was taken over by efficient shared fund profit
sharing (SIP) plans, a common source was the best known way to regularly set aside
money for a guaranteed loan fee. Expect to save any amount over time, RDs are a high-
end form of the fixed source. This is because a repetitive source understands that you
can't save all your money. Like these lines, it allows you to save one small step at a time
and take an interest in the extraordinary balance. Let's think about each of the amazing
benefits of a repeated source.
Advantages of strategy [reasons why]
1. High financing cost
One of the main benefits of repeating the originating account is the attractive funding
cost.
2. No penalty for losing a month

Financial Planning 1
Yes, when savers couldn't find an inevitable explanation from a common source, they
had to pay a financial fine. However, those days are no more.
3. Direct documents
The reports required to open a repeating source account are not difficult to verify. Any
resident can open a repeat business with an attached investment account.
Disadvantages of strategy
Rewards are rewarded with cash, but there are always some pitfalls. Let's take a look at
some things that might be a bit debilitating, when you accept repeating the source as a
rescue tool:
Liquidity: When you store money in RD, it will never be to your advantage to withdraw
the money until the end of the store term. After all, if you're looking for a simple liquidity
tool, repeating sources is an impractical concept. Then again, if you need to train your
investment fund, this weakness could work to your advantage.
Interest Rate: The cost of financing you receive for the next store is much lower than with
standard store plans, as your stores are built in small installments and not in general.
Strong monthly allowances: This is unusual because several shops have the ability to
change the size of your store, without paying much attention to your current financial
situation. With a fixed amount for monthly profiteering, someone who is likely to have
more or less store-bought resources should avoid choosing this item.
Alternatives considered
 x
Wealth creation recommendations – superannuation
Goal[sort out superannuation]
Recommended strategy:
 x
Advantages of strategy [reasons why]
 x
Disadvantages of strategy
 x
Alternatives considered
 x
Wealth protection (insurance) - recommendations

Financial Planning 1
1. Life insurance
 x
2. Total and permanent disability (TPD) insurance
 x
3. Income protection (IP) insurance
 x
4. Trauma insurance
 x
5. Private healthinsurance
 x
Other
 x

Financial Planning 1
Appendix 1 – Future value (FV) calculations
 Based on the FV calculations in Appendix 1 Tristen and Zoey should be ble to
achieve the above goals
