4572002720340Confidential Client Data Form
4572002720340Confidential Client Data Form
00Confidential Client Data Form
1582420746760Capstone Financial Planning Pty Ltd
AUSTRALIAN FINANCIAL SERVICES LICENCE NUMBER: 887765
00Capstone Financial Planning Pty Ltd
AUSTRALIAN FINANCIAL SERVICES LICENCE NUMBER: 887765
364490-13335Client Name: Wei Shun and Alexis LEONG
Date Completed: 02/10/2023.
Representative/Adviser:
Has FSG been provided to client? Yes No
Date: 25/09/2023
00Client Name: Wei Shun and Alexis LEONG
Date Completed: 02/10/2023.
Representative/Adviser:
Has FSG been provided to client? Yes No
Date: 25/09/2023
44069031750*IMPORTANT NOTICE TO CLIENT: The Corporations Law requires that an adviser making investment recommendations must have reasonable grounds for making those recommendations. This means that an adviser must conduct an appropriate investigation as to the financial objectives, situation and particular needs of the client. The information requested in this form, is necessary to enable recommendations to be made and will be used solely for that purpose. We accept no liability for any advice given on the basis of inaccurate or incomplete information.
00*IMPORTANT NOTICE TO CLIENT: The Corporations Law requires that an adviser making investment recommendations must have reasonable grounds for making those recommendations. This means that an adviser must conduct an appropriate investigation as to the financial objectives, situation and particular needs of the client. The information requested in this form, is necessary to enable recommendations to be made and will be used solely for that purpose. We accept no liability for any advice given on the basis of inaccurate or incomplete information.
PERSONAL DETAILS
YOURSELF
Mr
PARTNER (IF APPLICABLE)
Mrs
Surname LEONG LEONG
First Names Wei Shun Alexis
Date of Birth 15/07/1997 12/08/1994
Anticipated Retirement Date 60? 60?
Occupation Solicitor Shop Assistant
Marital Status Married Married
Employment Status Self Employed
Employed
Not Employed
Self Employed
Employed
Not Employed
Employment/Business Name SDH Law Readings
Employment/Business Address 6/620 Bourke Street 18 Bourke Street
Melbourne Vic 3000 Melbourne Vic 3000
Business Telephone 9925 7060 9919 4321.
Home Address 71 Lisa Rise
Williamstown Vic 3017
Home Telephone 9836 8888 ALL DEPENDENTS/NON DEPENDENTS
(include current and previous relationships)
Name Date of Birth Sex F/M Support required to age
Marlow 15/06/2013 M 21
Andy
Stephanie 23/02/2015
03/03/2018 M
F 21
21
POSTAL ADDRESS DETAILS Postal Address Home Work Other
Postal Address (e.g. PO Box)
Suburb ...State .. Postcode..
Country ..
Address Format Client Joint
Do you intend to stay with your current employer?
Do you feel your current employment situation is secure?
Yes No
Yes No Yes No
Yes No
Do you foresee any substantial change to your income in the next two to five years?
No No
After retirement do you intend to work again either on a full time or past time basis?
Yes No Yes No
PROFESSIONAL ADVISERS
Name Address Telephone
Accountant . . ..
Solicitor . . ..
Financial Adviser . . ..
Other (i.e. Bank Manager) . . ..
Authority to Contact Yes No
Date of First Contact ././.
Copy of Recommendation Yes No To Accountant Solicitor
Date Recommendation Sent ././. Financial Adviser Other
PENSIONS Are you and/or your partner eligible to receive a government pension/allowance? Yes No
ASSETS & LIABILITIES
ASSETS ($) LIABILITIES ($) OWNERSHIP
Yourself Partner Joint
Principal Residence $1,250,000 $800,000
Cash and Bank Deposits $10,000
Motor Vehicles $35,000
Motor Vehicles $62,000
Home Contents $100,000
Superannuation
Superannuation $50,000
$146,163
x
TOTALS $1,653,163(A) $800,000(L) NET ASSETS
(A) (L) = $ $853,163 .. Have you borrowed monies for any of the above investments? Yes No If yes, provide details.
______________________________________________________________________________________________________
______________________________________________________________________________________________________
ANNUAL INCOME AND EXPENDITURE
YOURSELF ($) PARTNER ($) JOINT ($)
Gross Salary/Pension $256,000 $30,000 $286,000
TOTAL INCOME $256,000 $30,000 $286,000
Income Tax $90,987 $2,144 $93,131
Net Income $165,013 $27,856 $192,869
EXPENDITURE Rent/Mortgage . $56,810
Household Expenses
(Food Power Insurance Rates etc) . $46,715
Motor Vehicle Expenses . $21,000
Medical/Education . $8,000
Clothing/Entertainment . $18,000
Holidays . $12,000
Private Health Insurance . $6,340
Other Expenses . $4,000
TOTAL EXPENDITURE $172,865
Annual Income Surplus/Deficit
(Income less Expenditure) $20,004
SUPERANNUATION DETAILS YOURSELF PARTNER (IF APPLICABLE) Fund Name MLC REST Type of Fund Retail Retail Contributions
S.G.C
Other Employer
Salary Sacrifice
Personal (non-concessional)
Personal (concessional) $27,500
..
..
.
$3,300
.
. Life Cover .. .. Current Value $146,163 $50,000 Transfer Value $146,143 $50,000 Policy Numbers 9234795 123456 Tax free Amount $20,000 $0 See the attached link in the information case study for the current MLC super fund investments and whether it is suitable for us.
Does a Binding Nomination of Beneficiaries apply? Yes No ESTATE PLANNING YOURSELF PARTNER (IF APPLICABLE) Do you have - Will Yes No Yes No Last Reviewed 15./12./2021. 15./12./2021. Enduring Power of Attorney Yes No Yes No RISK PROFILE:
We do not understand the risk profile form and the questions asked so we have not completed it
RISK INSURANCE
Existing Risk Insurance Cover Wei Shun
TYPE OF COVER
Term Trauma Income Protection Whole of Life Endowment
Name of Company Sum Insured
200,000 Nil Nil Nil Nil
Commencement Date Annual Premium/ Monthly Premium 850.00 pa Renewal Premium
Surrender Value
Maturity Date
Maturity Value
Policy Owner
Life Insured
Wei Shun Substandard Loadings Last Review Date
2020 Adviser Name Existing Risk Insurance Cover Alexis
TYPE OF COVER
Term Trauma Income Protection Whole of Life Endowment
Name of Company Sum Insured
Nil Nil Nil Nil Nil
Commencement Date Annual Premium/ Monthly Premium Renewal Premium
Surrender Value
Maturity Date
Maturity Value
Policy Owner
Life Insured
Substandard Loadings Last Review Date
Adviser Name FUTURE REVIEWS
How often do you want to review your Statement of Advice? (tick appropriate box)
Quarterly Half Yearly Yearly
Our next review date will be ________________
YOUR OBJECTIVES AND NEEDS
Minimise income tax Liability when income grows in next few years
Protect assets in a non-super environment
Maximise super
Looking for long term growth in assets outside of super
Aim for 60 but may want to retire earlier
See the information provided regarding Wei Shuns super fund with MLC. He would like some advice in relation to the performance of the fund and whether he should move to a different asset allocation.
Advise which is the better Property Trust fund to invest in. See the attached links in the case study information provided
This is our wish list and is in no particular order. We would also like advice on any objectives or goals we may have omitted
ADVISER NOTES
IMPORTANT INFORMATION TO BE READ AND ACKNOWLEDGED BY CLIENT(S)
CLIENT ACKNOWLEDGEMENT, TAX FILE NUMBER AUTHORISATION AND CLIENT DECLARATION
CLIENT ACKNOWLEDGEMENT
I/We acknowledge that I/we have received a copy of a Financial Services Guide of the AFS licensee.
TAX FILE NUMBER AUTHORISATION
(Complete TFN Authorisation if a record of clients tax file number is required and will be retained cross out if not applicable).
I/we give permission for the Representative of the licensee to retain my/our tax file number(s) on my/our personal Client File and to disclose this information, as necessary, to other Financial Institutions with which I/we choose to do business.
I/we understand this is the only purpose for which my/our Tax File Number(s) will be used. I/We also give permission for the Representative of the licensee to retain a copy of my/our tax returns on file if needed.
Tax File Number/s:
222 222 222 Wei Shun LEONG
333 333 333 Alexis LEONG
CLIENT DECLARATION AS TO CONTENTS OF CLIENT DATA FORMThe information set out in this form accurately represents my/our objectives, financial situation and or particular needs.
I/we are not aware of any other information which may be relevant to the preparation of my/our Statement of Advice.
I/we understand that a financial product recommendation will be based solely on the information supplied
in this form within a period of thirty (30) days. Should I/we not proceed with implementation of the Statement of Advice I/we understand that it will be necessary to review the information which has been supplied.
I/we acknowledge that if the information provided is inaccurate or incomplete, I/we should consider the appropriateness of the recommendations in the Statement of Advice, having regard to my/our personal circumstances.
I/we accept the risk profile recommended by the adviser on page 9 or I/we acknowledge that we have requested a different risk profile from what was recommended.
I/we acknowledge the common defaults for the attitudes to risk products on page 12.
Not answered the risk profile form as do not understand the questions.
Signed WeiShun Leong..SignedAlexis Leong ..
Name Wei Shun LEONG Name ..Alexis LEONG
Date 02/10/2023Date 02/10/2023
The information recorded in this document was provided during a discussion held on 02/10/2023
Representatives signature ..
Representatives name
4572002720340Confidential Client Data Form
00Confidential Client Data Form
1582420746760Capstone Financial Planning Pty Ltd
AUSTRALIAN FINANCIAL SERVICES LICENCE NUMBER: 887765
00Capstone Financial Planning Pty Ltd
AUSTRALIAN FINANCIAL SERVICES LICENCE NUMBER: 887765
364490-13335Client Name: Ateemah LEONG
Date Completed: 02/10/2023.
Representative/Adviser:
Has FSG been provided to client? Yes No
Date: 25/09//2023
00Client Name: Ateemah LEONG
Date Completed: 02/10/2023.
Representative/Adviser:
Has FSG been provided to client? Yes No
Date: 25/09//2023
44069031750*IMPORTANT NOTICE TO CLIENT: The Corporations Law requires that an adviser making investment recommendations must have reasonable grounds for making those recommendations. This means that an adviser must conduct an appropriate investigation as to the financial objectives, situation and particular needs of the client. The information requested in this form, is necessary to enable recommendations to be made and will be used solely for that purpose. We accept no liability for any advice given on the basis of inaccurate or incomplete information.
00*IMPORTANT NOTICE TO CLIENT: The Corporations Law requires that an adviser making investment recommendations must have reasonable grounds for making those recommendations. This means that an adviser must conduct an appropriate investigation as to the financial objectives, situation and particular needs of the client. The information requested in this form, is necessary to enable recommendations to be made and will be used solely for that purpose. We accept no liability for any advice given on the basis of inaccurate or incomplete information.
PERSONAL DETAILS
YOURSELF
Ms
Surname LEONG First Names Ateemah Date of Birth 15/07/1985 Anticipated Retirement Date As soon as possible Occupation Marketing Manager Marital Status Single Employment Status Self Employed
Employed
Not Employed
Employment/Business Name Digital Media Ltd Employment/Business Address 16 Cremorne Street Richmond Vic 3121 Business Telephone 99648264 Home Address 6/8Tijuna Crescent
Elwood Vic 3184
Home Telephone 0426 967 634 ALL DEPENDENTS/NON DEPENDENTS
(include current and previous relationships)
Name Date of Birth Sex F/M Support required to age
None POSTAL ADDRESS DETAILS Postal Address Home Work Other
Do you intend to stay with your current employer?
Do you feel your current employment situation is secure?
Yes xNo
Yes No Do you foresee any substantial change to your income in the next two to five years?
Yes No After retirement do you intend to work again either on a full time or past time basis?
Yes No Who recommended our service to you? My Dad
PROFESSIONAL ADVISERS
Name Address Telephone
Accountant . . ..
Solicitor . . ..
Financial Adviser . . ..
Other (i.e. Bank Manager) . . ..
Authority to Contact Yes No
Date of First Contact ././.
Copy of Recommendation Yes No To Accountant Solicitor
Date Recommendation Sent ././. Financial Adviser Other
PENSIONS No Government support ASSETS & LIABILITIES
ASSETS ($) LIABILITIES ($) OWNERSHIP
Yourself Partner Joint
Principal Residence $665,000 $250,000 x
Cash and Bank Deposits $25,000 x
Motor Vehicles $25,000 x
Home Contents $30,000 x
Term Deposit ING $85,000 x
AFI Shares $45,000 x
NAB Shares $30,000 x
Superannuation
$25,000
x
TOTALS $930,000(A) $250,000(L) NET ASSETS
(A) (L) = $ $680,000 .. Have you borrowed monies for any of the above investments? Yes No If yes, provide details.
______________________________________________________________________________________________________
______________________________________________________________________________________________________
ANNUAL INCOME AND EXPENDITURE
YOURSELF ($) Gross Salary/Pension $75,000 Investment Income (dividends)
Investment income (interest) $4,787
$4,762 TOTAL INCOME $84,549 Income Tax $18,200 Net Income $66,349 EXPENDITURE Rent/Mortgage $17,758
Household Expenses
(Food Power Insurance Rates etc) $8,715
Motor Vehicle Expenses $8,000
Medical $2,000
Clothing/Entertainment $9,000
Holidays $8,000
Private Health Insurance $2,340
Other Expenses $4,000
TOTAL EXPENDITURE $59,813
Annual Income Surplus/Deficit
(Income less Expenditure) $6,536
SUPERANNUATION DETAILS YOURSELF Fund Name Australian Super Type of Fund Retail Contributions
S.G.C
Other Employer
Salary Sacrifice
Personal (non-concessional)
Personal (concessional) $8,250
..
..
.
Life Cover $100,000 Current Value $25,000 Transfer Value $25,000 Policy Numbers Tax free Amount $0 Does a Binding Nomination of Beneficiaries apply? Yes No ESTATE PLANNING YOURSELF Do you have - Will Yes xNo Last Reviewed 15./12./2021. Enduring Power of Attorney Yes No No one to leave it to RISK PROFILE (N/A for insurance product advice)
In how many years do you plan to use your investment/superannuation funds? (a) Parking (Less than a year)
(b) Short Term (1-2 years)
(c) Medium Term (2-5 years)
(d) Long term (5-7 years)
Inflation erodes the value of your savings. Growth investing can counter the eroding effect on inflation but also expose you to the risk of short -term losses. (a) Inflation may erode my savings but I have no tolerance for loss
(b) I am conscious of the risk inflation presents, but would prefer a middle ground that limits losses
(c) I am comfortable with this trade off to beat inflation
How familiar are you with investment markets? (a) Very little understanding or interest
(b) Not very familiar
(c) Have enough experience to understand the importance of diversification
(d) Understand that markets fluctuate and that different market sectors offer different income, growth and taxation characteristics
What is the most aggressive investment you have made or likely to make? (a) Cash management trust
(b) Own home
(c) Investment property
(d) Managed funds
(e) Shares, technology fund, smaller companies fund
What would your reaction be, if six months after placing your investment you discover that, in line with what is happening in the financial markets generally, your portfolio has decreased in value by 20%? (a) Horror, security of your capital is critical and you did not intend to take risks
(b) You would cut your losses and transfer your funds into more secure investment sectors
(c) You would be concerned, but would wait to see if the investments improve
(d) This was a calculated risk and you would leave the investments in place, expecting future growth
Income Requirements: (a) Maximum possible income is required
(b) Substantial income is required with some capital growth
(c) Income is required however capital growth is equally important
(d) A small amount of income is required but mainly capital growth
(e) The focus should be on capital growth with income reinvested
Liquidity Requirements (a) Easy access to invested funds is required at all times
(b) The ability to access the majority of investments at short notice is required
(c) A reasonable level of invested funds should be accessible at short notice
(d) Only a small proportion of invested funds needs to be readily accessible
(e) There is no need to maintain easy access to invested fund
In relation to tax benefits from investments, what is your most comfortable mix? (a) You seek guaranteed returns before tax savings
(b) You prefer stable and consistent returns even if it means minimal tax savings
(c) You will accept some variability in investment returns and tax savings
(d) You prefer a potentially higher return producing maximum tax savings even though this means higher volatility and risk
To what extent are you concerned about preservation of your capital? (a) Security of capital is required regardless of potential returns
(b) A small degree of risk would be acceptable for a slight increase in potential returns
(c) A moderate degree of risk would be acceptable given the potential for increased returns
(d) Volatility in investment values is acceptable given longer term capital growth objectives
(e) Maximising potential returns is preferred regardless of risk
INVESTOR PROFILE
Defensive
You are a Defensive investor. Risk must be very low and you are prepared to accept lower returns to protect capital. The negative effects of tax and inflation will not concern you, provided your initial investment is protected.
Moderate
You are a Moderate Investor seeking better than basic returns, but risk must be low. Typically an older investor seeking to protect the wealth which you have accumulated, you may be prepared to consider less aggressive growth investments.
Balanced
You are a Balanced investor who wants a balanced portfolio to work towards medium to long term financial goals. You require an investment strategy which will cope with the effects of tax and inflation. Calculated risks will be acceptable to you to achieve good returns.
Growth
You are Growth investor, probably earning sufficient income to invest most funds for capital growth. Prepared to accept higher volatility and moderate risks, your primary concern is to accumulate assets over the medium to long term. Your portfolio may include more aggressive investments.
High Growth
You are a High Growth investor prepared to compromise portfolio balance to pursue potentially greater long-term returns. Your investment choices are diverse, but carry with them a higher level of risk. Security of capital is secondary to the potential for wealth accumulation.
Based on the above questions I would recommend the following risk profile:
If the client does not agree with this risk profile, please indicate what they have requested and reasons why:
RISK INSURANCE
Existing Risk Insurance Cover Ateemah
TYPE OF COVER
Term Trauma Income Protection Whole of Life Endowment
Name of Company Sum Insured
$100,000 Nil $50,000 Nil Nil
Commencement Date 2012 2012 Annual Premium/ Monthly Premium $480 $600 Renewal Premium
Surrender Value
Maturity Date
Maturity Value
Policy Owner
Life Insured
Substandard Loadings Nil Nil Nil Last Review Date
2021 2021 2021 Adviser Name FUTURE REVIEWS
How often do you want to review your Statement of Advice? (tick appropriate box)
Quarterly Half Yearly Yearly
Our next review date will be ________________
YOUR OBJECTIVES AND NEEDS
To pay off house.
Work less and holiday more. Consider selling some or all of my shares and invest in Fidelity International Global International Emerging Markets Fund
Can you explain this fund to me
Have a stable relationship if possible.
This is our wish list and is in no particular order. We would also like advice on any objectives or goals we may have omitted
ADVISER NOTES
IMPORTANT INFORMATION TO BE READ AND ACKNOWLEDGED BY CLIENT(S)
CLIENT ACKNOWLEDGEMENT, TAX FILE NUMBER AUTHORISATION AND CLIENT DECLARATION
CLIENT ACKNOWLEDGEMENT
I/We acknowledge that I/we have received a copy of a Financial Services Guide of the AFS licensee.
TAX FILE NUMBER AUTHORISATION
(Complete TFN Authorisation if a record of clients tax file number is required and will be retained cross out if not applicable).
I/we give permission for the Representative of the licensee to retain my/our tax file number(s) on my/our personal Client File and to disclose this information, as necessary, to other Financial Institutions with which I/we choose to do business.
I/we understand this is the only purpose for which my/our Tax File Number(s) will be used. I/We also give permission for the Representative of the licensee to retain a copy of my/our tax returns on file if needed.
Tax File Number/s:
Ateemah LEONG
CLIENT DECLARATION AS TO CONTENTS OF CLIENT DATA FORMThe information set out in this form accurately represents my/our objectives, financial situation and or particular needs.
I/we are not aware of any other information which may be relevant to the preparation of my/our Statement of Advice.
I/we understand that a financial product recommendation will be based solely on the information supplied
in this form within a period of thirty (30) days. Should I/we not proceed with implementation of the Statement of Advice I/we understand that it will be necessary to review the information which has been supplied.
I/we acknowledge that if the information provided is inaccurate or incomplete, I/we should consider the appropriateness of the recommendations in the Statement of Advice, having regard to my/our personal circumstances.
I/we accept the risk profile recommended by the adviser on page 5 or I/we acknowledge that we have requested a different risk profile from what was recommended.
I/we acknowledge the common defaults for the attitudes to risk products on page 7.
Signed Ateemah Leong..
Name Ateemah LEONG
Date 02/10/2023
The information recorded in this document was provided during a discussion held on 02/10/2023
Representatives signature ..
Representatives name
4572002720340Confidential Client Data Form
00Confidential Client Data Form
1582420746760Capstone Financial Planning Pty Ltd
AUSTRALIAN FINANCIAL SERVICES LICENCE NUMBER: 887765
00Capstone Financial Planning Pty Ltd
AUSTRALIAN FINANCIAL SERVICES LICENCE NUMBER: 887765
364490-13335Client Name: Vincenzo LEONG and Rebecca Hampton
Date Completed: 02/10/2023.
Representative/Adviser:
Has FSG been provided to client? Yes No
Date: 25/09/2023
00Client Name: Vincenzo LEONG and Rebecca Hampton
Date Completed: 02/10/2023.
Representative/Adviser:
Has FSG been provided to client? Yes No
Date: 25/09/2023
44069031750*IMPORTANT NOTICE TO CLIENT: The Corporations Law requires that an adviser making investment recommendations must have reasonable grounds for making those recommendations. This means that an adviser must conduct an appropriate investigation as to the financial objectives, situation and particular needs of the client. The information requested in this form, is necessary to enable recommendations to be made and will be used solely for that purpose. We accept no liability for any advice given on the basis of inaccurate or incomplete information.
00*IMPORTANT NOTICE TO CLIENT: The Corporations Law requires that an adviser making investment recommendations must have reasonable grounds for making those recommendations. This means that an adviser must conduct an appropriate investigation as to the financial objectives, situation and particular needs of the client. The information requested in this form, is necessary to enable recommendations to be made and will be used solely for that purpose. We accept no liability for any advice given on the basis of inaccurate or incomplete information.
PERSONAL DETAILS
YOURSELF
Mr
PARTNER (IF APPLICABLE)
Ms
Surname LEONG HAMPTON
First Names Vincenzo Rebecca
Date of Birth 25/04/1981 12/08/1983
Anticipated Retirement Date 60 60
Occupation IT Manager Teacher
Marital Status De facto De facto
Employment Status Self Employed
Employed
Not Employed
Self Employed
Employed
Not Employed
Employment/Business Name John Holland Ltd Alphington Primary School
Employment/Business Address 186 Flinders Street 30 The Avenue
Melbourne Vic 3000 Alphington Vic 3078
Business Telephone Home Address 22 Osborne Street
Williamstown Vic 3016
Mobile 0468 347 610 ALL DEPENDENTS/NON DEPENDENTS
(include current and previous relationships)
Name Date of Birth Sex F/M Support required to age
Erica 15/06/2011 F 21
Cooper 23/02/2008 M 21
Ex husband is contributing to maintenance until age 18 POSTAL ADDRESS DETAILS Postal Address Home Work Other
Do you intend to stay with your current employer?
Do you feel your current employment situation is secure?
Yes No
Yes No Yes No
Yes No
Do you foresee any substantial change to your income in the next two to five years?
Yes No Yes xNo
After retirement do you intend to work again either on a full time or past time basis?
Yes No Yes No
Who recommended our service to you? My Dad
NAME OF
Company NIL
Trust NIL
Super Fund NIL
PROFESSIONAL ADVISERS
Name Address Telephone
Accountant . . ..
Solicitor . . ..
Financial Adviser . . ..
Other (i.e. Bank Manager) . . ..
Authority to Contact Yes No
Date of First Contact ././.
Copy of Recommendation Yes No To Accountant Solicitor
Date Recommendation Sent ././. Financial Adviser Other
PENSIONS
No Government support ASSETS & LIABILITIES
ASSETS ($) LIABILITIES ($) OWNERSHIP
Yourself Partner Joint
Principal Residence $0 $0
Cash and Bank Deposits $60,000 x
Motor Vehicles $45,000 x
Investment Property $259,000 $110,000 x
Home Contents $60,000
Superannuation
Superannuation
$50,000
$198,000
x
TOTALS $672,000 (A) $110,000(L) NET ASSETS
(A) (L) = $ $562,000 .. Have you borrowed monies for any of the above investments? Yes No If yes, provide details.
______________________________________________________________________________________________________
______________________________________________________________________________________________________
ANNUAL INCOME AND EXPENDITURE
YOURSELF ($) PARTNER ($) JOINT ($)
Gross Salary/Pension $150,000 $50,000 $200,000
Rental Income Net $5,750 $5,750
TOTAL INCOME $155,750 $50,000 $205,750
Income Tax $45,810 $7,717 $53,527
Net Income $109,940 $42,283 $152,223
EXPENDITURE Rent . $23,400
Household Expenses
(Food Power Insurance Rates etc) . $23,715
Motor Vehicle Expenses . $14,464
Medical/Education . $8,000
Clothing/Entertainment . $9,000
Rental property expenses . $12,750
Holidays . $3,000
Private Health Insurance . $4,340
Other Expenses . $4,000
TOTAL EXPENDITURE $102,669
Annual Income Surplus/Deficit
(Income less Expenditure) $49,554
Extraordinary Expenses $ .
SUPERANNUATION DETAILS YOURSELF PARTNER (IF APPLICABLE) Fund Name John Holland Super Department of Education Super Type of Fund Retail Retail Contributions
S.G.C
Other Employer
Salary Sacrifice
Personal (non-concessional)
Personal (concessional) $16,500
..
..
.
$5,500
.
. Life Cover .. .. Current Value $198,000 $45,000 Transfer Value $198,000 $45,000 Policy Numbers Tax free Amount $10,000 $5,000 Does a Binding Nomination of Beneficiaries apply? Yes No ESTATE PLANNING YOURSELF PARTNER (IF APPLICABLE) Do you have - Will Yes xNo Yes xNo Last Reviewed Enduring Power of Attorney Yes No Yes No Funeral Plan Yes No Yes No Estate Planning Objectives (Make sure that Erica and Cooper are provided for) RISK PROFILE (N/A for insurance product advice)
In how many years do you plan to use your investment/superannuation funds? (a) Parking (Less than a year)
(b) Short Term (1-2 years)
(c) Medium Term (2-5 years)
(d) Long term (5-7 years)
Inflation erodes the value of your savings. Growth investing can counter the eroding effect on inflation but also expose you to the risk of short -term losses. (a) Inflation may erode my savings but I have no tolerance for loss
(b) I am conscious of the risk inflation presents, but would prefer a middle ground that limits losses
(c) I am comfortable with this trade off to beat inflation
How familiar are you with investment markets? (a) Very little understanding or interest
(b) Not very familiar
(c) Have enough experience to understand the importance of diversification
(d) Understand that markets fluctuate and that different market sectors offer different income, growth and taxation characteristics
What is the most aggressive investment you have made or likely to make? (a) Cash management trust
(b) Own home
(c) Investment property
(d) Managed funds
(e) Shares, technology fund, smaller companies fund
What would your reaction be, if six months after placing your investment you discover that, in line with what is happening in the financial markets generally, your portfolio has decreased in value by 20%? (a) Horror, security of your capital is critical and you did not intend to take risks
(b) You would cut your losses and transfer your funds into more secure investment sectors
(c) You would be concerned, but would wait to see if the investments improve
(d) This was a calculated risk and you would leave the investments in place, expecting future growth
Income Requirements: (a) Maximum possible income is required
(b) Substantial income is required with some capital growth
(c) Income is required however capital growth is equally important
(d) A small amount of income is required but mainly capital growth
(e) The focus should be on capital growth with income reinvested
Liquidity Requirements (a) Easy access to invested funds is required at all times
(b) The ability to access the majority of investments at short notice is required
(c) A reasonable level of invested funds should be accessible at short notice
(d) Only a small proportion of invested funds needs to be readily accessible
(e) There is no need to maintain easy access to invested fund
In relation to tax benefits from investments, what is your most comfortable mix? (a) You seek guaranteed returns before tax savings
(b) You prefer stable and consistent returns even if it means minimal tax savings
(c) You will accept some variability in investment returns and tax savings
(d) You prefer a potentially higher return producing maximum tax savings even though this means higher volatility and risk
To what extent are you concerned about preservation of your capital? (a) Security of capital is required regardless of potential returns
(b) A small degree of risk would be acceptable for a slight increase in potential returns
(c) A moderate degree of risk would be acceptable given the potential for increased returns
(d) Volatility in investment values is acceptable given longer term capital growth objectives
(e) Maximising potential returns is preferred regardless of risk
INVESTOR PROFILE
Defensive
You are a Defensive investor. Risk must be very low and you are prepared to accept lower returns to protect capital. The negative effects of tax and inflation will not concern you, provided your initial investment is protected.
Moderate
You are a Moderate Investor seeking better than basic returns, but risk must be low. Typically an older investor seeking to protect the wealth which you have accumulated, you may be prepared to consider less aggressive growth investments.
Balanced
You are a Balanced investor who wants a balanced portfolio to work towards medium to long term financial goals. You require an investment strategy which will cope with the effects of tax and inflation. Calculated risks will be acceptable to you to achieve good returns.
Growth
You are Growth investor, probably earning sufficient income to invest most funds for capital growth. Prepared to accept higher volatility and moderate risks, your primary concern is to accumulate assets over the medium to long term. Your portfolio may include more aggressive investments.
High Growth
You are a High Growth investor prepared to compromise portfolio balance to pursue potentially greater long-term returns. Your investment choices are diverse, but carry with them a higher level of risk. Security of capital is secondary to the potential for wealth accumulation.
Based on the above questions I would recommend the following risk profile:
If the client does not agree with this risk profile, please indicate what they have requested and reasons why:
RISK INSURANCE
Existing Risk Insurance Cover Vincenzo
TYPE OF COVER
Term Trauma Income Protection Whole of Life Endowment
Name of Company Sum Insured
$180,000 Nil $150,000 Nil Nil
Commencement Date 2008 2008 Annual Premium/ Monthly Premium $1,480 $1,750 Renewal Premium
Surrender Value
Maturity Date
Maturity Value
Policy Owner
Life Insured
Substandard Loadings Nil Nil Nil Last Review Date
2021 2021 2021 Adviser Name Existing Risk Insurance Cover Rebecca
TYPE OF COVER
Term Trauma Income Protection Whole of Life Endowment
Name of Company Sum Insured
$40,000 Nil Nil Nil Nil
Commencement Date 2005 2005 Annual Premium/ Monthly Premium $78.24 Renewal Premium
Surrender Value
Maturity Date
Maturity Value
Policy Owner
Life Insured
Substandard Loadings Last Review Date
2021 2021 Adviser Name FUTURE REVIEWS
How often do you want to review your Statement of Advice? (tick appropriate box)
Quarterly Half Yearly Yearly
Our next review date will be ________________
YOUR OBJECTIVES AND NEEDS
To buy a family home
Whose name should it be in?
Should we sell the investment property?
What should we do with the surplus cash?
Who should own the investments?
Explain the Vanguard Investments to us and also explain what is meant by an ETF
Assist the two children with their university fees
Start an investment plan
This is our wish list and is in no particular order. We would also like advice on any objectives or goals we may have omitted
ADVISER NOTES
Clients have never completed these forms before so need to check the data provided.
IMPORTANT INFORMATION TO BE READ AND ACKNOWLEDGED BY CLIENT(S)
CLIENT ACKNOWLEDGEMENT, TAX FILE NUMBER AUTHORISATION AND CLIENT DECLARATION
CLIENT ACKNOWLEDGEMENT
I/We acknowledge that I/we have received a copy of a Financial Services Guide of the AFS licensee.
TAX FILE NUMBER AUTHORISATION
(Complete TFN Authorisation if a record of clients tax file number is required and will be retained cross out if not applicable).
I/we give permission for the Representative of the licensee to retain my/our tax file number(s) on my/our personal Client File and to disclose this information, as necessary, to other Financial Institutions with which I/we choose to do business.
I/we understand this is the only purpose for which my/our Tax File Number(s) will be used. I/We also give permission for the Representative of the licensee to retain a copy of my/our tax returns on file if needed.
Tax File Number/s:
Vincenzo LEONG
Rebecca HAMPTON
CLIENT DECLARATION AS TO CONTENTS OF CLIENT DATA FORMThe information set out in this form accurately represents my/our objectives, financial situation and or particular needs.
I/we are not aware of any other information which may be relevant to the preparation of my/our Statement of Advice.
I/we understand that a financial product recommendation will be based solely on the information supplied
in this form within a period of thirty (30) days. Should I/we not proceed with implementation of the Statement of Advice I/we understand that it will be necessary to review the information which has been supplied.
I/we acknowledge that if the information provided is inaccurate or incomplete, I/we should consider the appropriateness of the recommendations in the Statement of Advice, having regard to my/our personal circumstances.
I/we accept the risk profile recommended by the adviser on page 5 or I/we acknowledge that we have requested a different risk profile from what was recommended.
I/we acknowledge the common defaults for the attitudes to risk products on page 7.
Signed Vincenzo Leong..SignedRebecca Hampton ..
Name Vincenzo LEONG Name ..Rebecca HAMPTON
Date 02/10/2023Date 02/10/2023
The information recorded in this document was provided during a discussion held on 02/10/2023
Representatives signature ..
Representatives name
4572002720340Confidential Client Data Form
00Confidential Client Data Form
1582420746760Capstone Financial Planning Pty Ltd
AUSTRALIAN FINANCIAL SERVICES LICENCE NUMBER: 887765
00Capstone Financial Planning Pty Ltd
AUSTRALIAN FINANCIAL SERVICES LICENCE NUMBER: 887765
364490-13335Client Name: Jock and Melissa LEONG
Date Completed: 02/10/2023.
Representative/Adviser:
Has FSG been provided to client? Yes No
Date: 25/09/2023
00Client Name: Jock and Melissa LEONG
Date Completed: 02/10/2023.
Representative/Adviser:
Has FSG been provided to client? Yes No
Date: 25/09/2023
44069031750*IMPORTANT NOTICE TO CLIENT: The Corporations Law requires that an adviser making investment recommendations must have reasonable grounds for making those recommendations. This means that an adviser must conduct an appropriate investigation as to the financial objectives, situation and particular needs of the client. The information requested in this form, is necessary to enable recommendations to be made and will be used solely for that purpose. We accept no liability for any advice given on the basis of inaccurate or incomplete information.
00*IMPORTANT NOTICE TO CLIENT: The Corporations Law requires that an adviser making investment recommendations must have reasonable grounds for making those recommendations. This means that an adviser must conduct an appropriate investigation as to the financial objectives, situation and particular needs of the client. The information requested in this form, is necessary to enable recommendations to be made and will be used solely for that purpose. We accept no liability for any advice given on the basis of inaccurate or incomplete information.
PERSONAL DETAILS
YOURSELF
MrPARTNER (IF APPLICABLE)
MrsSurname LEONG LEONG
First Names Jock Melissa
Date of Birth 03/09/1950 16/09/1952
Anticipated Retirement Date Retired Retired
Marital Status Married Married
Home Address 105 Darren Crescent
Werribee Vic 3030
Home Telephone 9836 6580 ALL DEPENDENTS/NON DEPENDENTS(include current and previous relationships)
Name Date of Birth Sex F/M Support required to ageGeorge (father) 26/05/31 M POSTAL ADDRESS DETAILS Postal Address Home Work Other
Do you foresee any substantial change to your income in the next two to five years?
Yes No Yes xNo
Who recommended our service to you? Existing client
NAME OF
Company NIL
Trust NIL
Super Fund JMLEONG Pty Ltd as trustee for the JMLEONG Super Fund
PROFESSIONAL ADVISERS
Name Address Telephone
Accountant . . ..
Solicitor . . ..
Financial Adviser . . ..
Other (i.e. Bank Manager) . . ..
Authority to Contact Yes No
Date of First Contact ././.
Copy of Recommendation Yes No To Accountant Solicitor
Date Recommendation Sent ././. Financial Adviser Other
PENSIONS No Government supportASSETS & LIABILITIES
ASSETS ($) LIABILITIES ($) OWNERSHIP
Principal Residence $2,250,000 J Cash and Bank Deposits $110,000 J Motor Vehicles $25,000 Melissa Motor Vehicles $65,000 Jock Investment Property #1 $590,000 J Investment Property #2
Investment Property #3
Investment Property # 4 $675,000
$468,000
$682,000
J
J
J Home Contents $120,000 J Superannuation
Superannuation $800,000
$500,000 Jock
Melissa TOTALS $6,285,000(A) $0(L) NET ASSETS
(A) (L) = $ $6,285,000 .. Have you borrowed monies for any of the above investments? Yes No If yes, provide details.
______________________________________________________________________________________________________
______________________________________________________________________________________________________
ANNUAL INCOME AND EXPENDITURE
YOURSELF ($) PARTNER ($) JOINT ($)
Rental Income from land $60,000 $60,000 $120,000
Rental income $32,500 $32,500
$65,000
Pension from SMSF (tax free) $40,000 $25,000 $65,000
TOTAL INCOME $132,500 $117,500 $250,000
Income Tax $22,380 $22,380 $44,760
Net Income $110,120 $95,120 $205,240
EXPENDITURE Rent/Mortgage . $0
Household Expenses
(Food Power Insurance Rates etc) . $26,660
Motor Vehicle Expenses . $12,000
Medical/Education . $8,000
Clothing/Entertainment . $8,000
Holidays . $35,000
Private Health Insurance . $6,340
Other Expenses . $4,000
TOTAL EXPENDITURE $100,000
Annual Income Surplus/Deficit
(Income less Expenditure) $105,240
Extraordinary Expenses $ .
SUPERANNUATION DETAILS YOURSELF PARTNER (IF APPLICABLE) Fund Name JMLEONG Super Fund JM Leong Super Fund Type of Fund SMSF SMSF Contributions
S.G.C
Other Employer
Salary Sacrifice
Personal (non-concessional)
Personal (concessional) None
None Life Cover Cancelled Cancelled Current Value $800,000 $500,000 Transfer Value $800,000 $500,000 Policy Numbers Tax free Amount $250,000 $260,000 Does a Binding Nomination of Beneficiaries apply? Yes ESTATE PLANNING YOURSELF PARTNER (IF APPLICABLE) Do you have - Will Yes No Yes No Last Reviewed 15./12./2022. 15./12./2022. Enduring power of attorney Yes to each other Yes to each other Estate Planning Objectives To provide for the three children as well as the grandchildren RISK PROFILE:
We have been longstanding clients and do not see the need to complete the risk profile form. We see ourselves as balanced investors which want to focus on having sufficient income to live on and protect our capital to pass on to our children.
RISK INSURANCE
None as too old
FUTURE REVIEWS
How often do you want to review your Statement of Advice? (tick appropriate box)
Quarterly Half Yearly Yearly
Our next review date will be ________________
YOUR OBJECTIVES AND NEEDS
To ensure that if either passes away there are sufficient assets to live on
To pass on the farmland property to Vincenzo
To pass on the investment properties equally to Ateemah and Wei Shun
To consider winding up the self managed super fund
To consider what to do with money from my father in the future
Acquire growth assets via managed funds or ETFs for the grandchildren.
The self managed super fund is invested in a range of blue chip shares and we are happy with their performance and spread and do not require any advice in relation to the investments in the SMSF.
To make sure that Dads needs are provided for
This is our wish list and is in no particular order. We would also like advice on any objectives or goals we may have omitted
ADVISER NOTES
IMPORTANT INFORMATION TO BE READ AND ACKNOWLEDGED BY CLIENT(S)
CLIENT ACKNOWLEDGEMENT, TAX FILE NUMBER AUTHORISATION AND CLIENT DECLARATION
CLIENT ACKNOWLEDGEMENT
I/We acknowledge that I/we have received a copy of a Financial Services Guide of the AFS licensee.
TAX FILE NUMBER AUTHORISATION
(Complete TFN Authorisation if a record of clients tax file number is required and will be retained cross out if not applicable).
I/we give permission for the Representative of the licensee to retain my/our tax file number(s) on my/our personal Client File and to disclose this information, as necessary, to other Financial Institutions with which I/we choose to do business.
I/we understand this is the only purpose for which my/our Tax File Number(s) will be used. I/We also give permission for the Representative of the licensee to retain a copy of my/our tax returns on file if needed.
Tax File Number/s:
Jock LEONG
Melissa LEONG
CLIENT DECLARATION AS TO CONTENTS OF CLIENT DATA FORMThe information set out in this form accurately represents my/our objectives, financial situation and or particular needs.
I/we are not aware of any other information which may be relevant to the preparation of my/our Statement of Advice.
I/we understand that a financial product recommendation will be based solely on the information supplied.
in this form within a period of thirty (30) days. Should I/we not proceed with implementation of the Statement of Advice I/we understand that it will be necessary to review the information which has been supplied.
I/we acknowledge that if the information provided is inaccurate or incomplete, I/we should consider the appropriateness of the recommendations in the Statement of Advice, having regard to my/our personal circumstances.
I/we accept the risk profile recommended by the adviser on page 9 or I/we acknowledge that we have requested a different risk profile from what was recommended. Not relevant to us
I/we acknowledge the common defaults for the attitudes to risk products on page 12.
Signed Jock LeongSigned Melissa Leong
Name Jock LEONGName Melissa LEONG
Date 02/10/2023Date 02/10/2023
The information recorded in this document was provided during a discussion held on 02/10/2023.
Representatives signature
Representatives name
Assessment details for ALL students
Assessment item 3 Case Study for a Limited Advice
Due dates: Available from 9 am Wednesday 11 October 2023
Due Date: Friday 20 October 2023 by 5 pm
Weighting: 45% Length: 15 pages maximum (see exclusions) Content assessed All modules Graduate skills and attributes assessed Communication, information technology competence, problem solving, critical thinking, information literacy, ethical practice as well as the ability to explain wealth creation concepts to consumers
Objectives
1.To provide a limited statement of advice that addresses the issues raised by each family group. This assessment item relates to learning outcomes 1 to 5 as stated in the front section of this Course Profile.
Case Study (total marks)90 Marks
CASE STUDY FOR WEALTH CREATION AND ESTATE PLANNING
INTRODUCTION:
You are a financial planner working for Capstone Financial Planning Pty Ltd AFSL 887765. As a qualified financial adviser, a new client Jock and Melisa Leong have come to you seeking advice.
They do not want a formal Statement of Advice but want you to address specific issues raised by their circumstances and also in respect of their family members.
You are required to read the information about Jock and Melisa and their family situation and address the issues they have raised. You are also to consider any other issues you think they should consider but have not raised.
CASE STUDY INFORMATION
Jock and Melissa Leong are in their 70s. Jock is 74 and Melissa is 71. They have three children, Vincenzo (42), Ateemah (38) and Wei Shun (26)
Jock was a market gardener who grew vegetables but has since retired. Melissa used to work in a nursery until she suffered a back injury and had to retire 12 years ago. They own the farmland outright and now lease out their land to other market gardeners to use. They generate an income of $120,000 per annum from this. They also have rental income from their 4 investment properties of $65,000 after expenses. All assets are owned jointly.
They also have a self-managed super fund, and they are both in pension mode. Currently Jock is drawing a pension of $40,000 and Melissa is drawing a pension of $25,000.
Jock and Melissa do not spend much and estimate that their annual living costs are $65,000 per annum, and $35,000 per annum on travel.
Jock is going to have an ankle replacement in the new year (January 2024), which will cost $8,000 and he will not be able to travel for 12 months. Therefore in 2024 they are not going to be spending money on travel.
Attached is their assets and liabilities and income statement in the summary client fact find. They have built their wealth over the last 45 years and are not keen on borrowing money to accelerate their assets.
They regard themselves as conservative to balanced investors where they are more concerned about protecting their capital, generating income and being able to pass on the assets to their children. They have not completed the risk profile as they know what risk profile they are.
Jocks father, a widower, is aged 92 and in poor health. He currently is in a nursing home. When he passes away Jock will inherit $1,200,000 and his three children will each receive $100,000 each.
Both Jock and Melissa have sufficient income to travel overseas each year. In their spare time they look after Jocks father and Wei Shuns children.
Vincenzo is not married but had been in a previous relationship for 12 years. Three years ago, he entered into a new relationship with Rebecca, who has two children aged 12 and 15 of her own, named Erica and Cooper.
Ateemah is single and has been in numerous relationships which have not lasted. She has indicated she is not interested in marriage or settling down and just wants to enjoy life.
Wei Shun is married to Alexis and they have three children aged 10, 8 and 5, (Marlow, Andy and Stephanie)
Jock and Melissa wish to assist their three children and their grandchildren and would prefer to do it now whilst they are alive. They are happy to acquire investments for their grandchildren so that they have sufficient funds when they are 21 to be able to buy a house. They would prefer to control these assets and pass them on to the grandchildren via their will.
Jock also has a history of high blood pressure and high cholesterol. His mother passed away 5 years ago from Alzheimers and is concerned that it may run in the family.
They have also insisted that their three children also seek financial advice and all four groups have made an appointment to come and see your firm.
Required:
For each client group you are required to provide a limited statement of advice that addresses the issues raised by each family group.
You are to review the individual circumstances for the following family groups and address the concerns or issues that they have.
Jock and Melissa
Vincenzo and Rebecca
Ateemah
Wei Shu and Alexis.
Each family group has completed a client fact find. In doing so they have answered those questions they believe are relevant to them.
DETAILED INFORMATION.
YOU:
You are a financial adviser working for Capstone Financial Planning Pty Ltd an AFSL license holder AFSL Number 887765.
Your current role is a junior financial adviser as you have just recently graduated from RMIT.
Your boss Murray Mc Nab who is an authorized representative and director of Capstone Financial Planning Pty Ltd has asked you to review the information of the 4 client groups and prepare detailed notes about the issues affecting each and what you would recommend they do.
The company you work for under its AFSL license is authorised to provide advice on all aspects of financial planning. Murray is also a professional recognized tax adviser and is authorized by the Tax Practitioners Board to advise on tax issues.
YOUR TASK:
You are required to go through the information provided by the 4 family groups and:
Identify the issues that they are concerned about relating to wealth creation and estate planning.
It is your task to identify the issues that they are currently concerned about as well as what could affect them in the future.
CLIENT BACKGROUND INFORMATION:
Jock and Melissa
Jock and Melissa were born in the 1950s and are classified as Baby boomers.
They have worked hard all their lives and are now in the retirement phase and are concerned about the following:
Ensuring they have sufficient assets and income to meet their needs,
Assist their children and grandchildren whilst alive,
Ensure their assets are not lost if they suffer dementia or other illness and
Ensure on their death the assets go to their children and grandchildren.
Issues you are to address for Jock and Melissa:
Please also review our objectives in the fact find form to ensure that you advise us on everything we want to know, if not stated below.
Prepare a cash flow and balance sheet position for Jock and Melissa for the current year and the 2024 year.
What range of investments would you consider appropriate they should acquire to hold for their grandchildren?
Given Jocks upcoming operation and health issues they have discussed the need to revise their wills and powers of attorney. They would like your advice on what should be included in the wills and how the assets should be allocated to their children given their current relationship issues.
They currently do not have a binding death nomination form in their self-managed superannuation fund. Should they?
They have heard that having too many assets in their name on their death can cause issues, so they are keen to minimize assets in their names.
Jocks father is showing signs of dementia and Jock is worried about his ability to deal with his affairs. What should Jock do?
Vincenzo and Rebecca
Vincenzo and Rebecca were born in the 1980s and their concerns are more immediate.
They wish to buy a house for their family. They are currently renting in Williamstown. Rebeccas two children go to high school in Williamstown. Rebeccas ex-husband will no longer be liable to contribute to family support for the children when they turn 18.
Vincenzo works for John Holland Ltd as a senior IT manager on a salary of $150,000. Rebecca works as a special needs teacher at a primary school in Alphington. Her income is $50,000.
They can afford to save $4,000 per month.
They are not great budgeters but understand the need to save.
Vincenzo owns an investment property in regional Victoria which generates rent of $18,500. The rental expenses including interest on the loan is $12,750. The property was bought for $185,000, 7 years ago and is currently valued at $259,000. The mortgage on the property is $110,000. The mortgage has always been on a variable rate. The current rate is 3.89%.
He is looking to sell the property and put the money down as a deposit on a family home.
Their relationship has been stable but the issue with the ex-husband has at times created friction.
Vincenzo had been in a previous relationship himself for 12 years and has some issues about the current relationship.
Vincenzos grandfather has also indicated to him that on his death he will receive $100,000 as his share of the inheritance.
Vincenzo also has superannuation of $198,000 with the employer fund established by John Holland Ltd.
Rebecca, because of her divorce, does not have much by way of assets. Her primary concern is to ensure that the children are looked after.
The children have no plans as to what they will do when they finish high school, but Rebecca would like them to go to university to ensure that they can get a job. She is concerned about the cost of education for them.
Issues you are to address for Vincenzo and Rebecca:
Please also review our objectives in the fact find form to ensure that you advise us on everything we want to know, if not stated below.
Given the relationship between Vincenzo and Rebecca, who and how should the future family home be owned?
Who should own the investments acquired with the surplus income?
Vincenzo and Rebecca would like investments that have a mix of income and growth (40%/60%). They have heard of Vanguard Investments and ETFs. They would expect an income return of at least 4.5% and capital growth of 5.8%. Are there any managed funds in the Vanguard portfolio that could achieve this return and what are the risks of not achieving such a return?
What is an ETF?
3. Ateemah
Ateemah is regarded as a free spirit and does not feel the need to follow her parents and be married and have children. She graduated in marketing and her attitude to work is to contract for 9 months and then take 3 months off to travel the world and then get a new contract for another 9 months and then travel.
When she works, she earns approximately $75,000 for the nine months.
She has minimal superannuation and owns her own 2-bedroom apartment in Elwood worth $665,000. She has a mortgage on the property of $250,000.
She has managed to save $185,000 and it is currently invested into:
Australian Financial Investments Ltd (ASX code AFI) 6,000 shares worth today $45,000, $7.50 per share. They were acquired for $4.50 in 2008. The dividend yield on the shares is 3.62%
National Australia Bank Ltd shares (ASX code NAB) 1,070 shares worth today $30,000 being $28.04. They were acquired for $22.50 in 2007.The dividend yield on the shares is 5.74%.
A term deposit of $85,000 with ING at current interest rate of 5.25% per annum
Cash at bank of $25,000 paying 1.2% per annum.
She owns her own car worth $25,000.
She estimates she can save every month $500.
She is concerned that with the rising cost of living and as her mortgage rate will be moving from fixed to variable, she may need to work full-time for the next 2-3 years.
The mortgage on her property is $250,000 at a rate of 3.89%.
The reason it is so low is that her parents loaned her money to buy the property.
She does not feel the need to work hard and contribute to super as:
She will inherit from her parents and
Her attitude is enjoy life now and worry about the future later.
Issues you are to address for Ateemah:
Please also review my objectives in the fact find form to ensure that you advise me on everything I want to know, if not stated below.
Based on the investments above held by Ateemah, calculate the average return for her portfolio.
She is concerned about the low yields offered by the shares and is happy to sell them both. She is keen to have more international exposure and is considering investing in a global fund. She has heard of the Fidelity International Global International Emerging Markets Fund. She is not concerned about the income but is more focused on growth. The link for the fund is:
https://www.fidelity.com.au/funds/fidelity-global-emerging-markets-fund/https://announcements.asx.com.au/asxpdf/20221230/pdf/45k99ccndmx900.pdfAteemah has asked for your opinion of the fund (your practice is authorized to advise on this fund): and has the following questions:
She has provided you with the following information in relation to the above fund:
RATIO INFORMATION
1 yr 3 yr
Volatility 15.58 12.82
Alpha 4.21 3.41
Beta 0.44 0.35
Sharpe 0.51 0.17
Info Ratio 0.28 0.23
R2 0.86 0.57
What do these numbers mean and what are they an indicator of?
What is the risk of achieving or not achieving the return for this fund?
Wei Shun and Alexis
Wei Shun is a senior associate in a legal firm and it is expected that in the next 18 months he will be made a partner of the firm.
He works long hours and to compensate he takes the family away on overseas holidays, but he is always on the phone.
Alexis works part time as a shop assistant in a bookshop.
She is concerned about Wei Shun. The marriage is stable but the long hours he works is putting a strain on the relationship.
He currently earns $256,000 as a senior associate and if made a partner in 18 months time, his income will grow to $450,000 for 3 years and then likely to be at least $750,000 per annum.
His current superannuation is with MLC. His superannuation is in the following portfolios:
MLC Balanced Fund (39.67%) $57,992
MLC Global Share Fund (26.21%) $38,312
MLC Growth (34.12%) $49,859
The total value is $146,163.
He is concerned about the lack of growth in value and thinks that the current portfolios may not suit him.
He has a long-term view and is prepared to sacrifice income for more growth in the portfolio.
Given his expected higher income he is happy to maximise his superannuation.
However, he is also interested in setting up a non superannuation portfolio via a family trust to hold investments for the family.
Issues you are to address for Wei Shun and Alexis:
Please also review our objectives in the fact find form to ensure that you advise us on everything we want to know, if not stated below.
Given Wei Shuns potentially high income in the coming years, he is not keen to pay a lot of tax. He is interested in reducing his income tax liability as much as possible legitimately.
Review his current superannuation portfolio and determine if there are more growth-oriented portfolios in MLC that he should be in.
The link is: https://www.mlc.com.au/personal/superannuation/ready-made-portfolios/simple-choiceWei Shun will have the capacity to borrow and invest in the share market and direct property. He is happy to consider margin lending to acquire equities and managed funds and a property mortgage to acquire direct property.
He is also keen on commercial property. He has heard of Stockland Property Trust and the Charter Hall Prime Office Fund (CPOF). The links are:
https://www.marketindex.com.au/asx/sgphttps://www.charterhall.com.au/investments/funds/charter-hall-prime-office-fundHe requests that you analyse the above investments and determine which of the two investments is the best one for him. He is happy to leverage such investments and can invest $80,000. He wishes to maximise his borrowings in the selected fund or funds by way of margin lending, if you think that is appropriate.
Macquarie Bank Ltd will lend to him on a LVR of 65% for both funds.
He is not interested in the income but the potential for capital growth. He does not need the funds for the next 10 years.
Given he will be a partner in the firm, show the cash flow numbers of the selected property trust investment if it is:
owned by him directly or
in his family trust
He is conscious of asset protection issues given he will be a partner in the firm.
Assessment Task
Part A: (90 marks)
You are the financial adviser assigned to look after Jock and Melisa Leong and their family group. You must submit a limited SoA that covers the issues raised for the clients. All professional requirements and the expected standards for this assessment must be followed.
You must ensure that you include sufficient information and product research without relying on references to Product Statements or other documentation.
Your recommendations must be suitable and relevant to this client scenario. You must use appropriate strategies and name specific products in your recommendations, outline the characteristics of the investments and provide sound reasoning as to why the strategies and products are appropriate and why any investment changes are required. You must also present financial modelling, within your limited SoA.
Your detailed calculations and projections should be clear and transparent. This clarity is absolutely critical in helping your clients and the assessor to understand both your projections and your strategies.
You are allowed to make valid assumptions regarding areas not discussed in the scenario above; however, these assumptions must be disclosed on a separate sheet attached to your limited Statement of Advice headed File Notes.
Assumptions specific to the clients situation should also be included within the body of your limited SoA. You must not change the basic facts of the case study with File Notes.
On average, the Assessment Task is expected to be a maximum of 15 pages in length (excluding cover sheet, contents page, covering letter, assumption page and appendices).
You must include a table of contents with all pages being numbered consecutively, including the pages of the appendices. Either Times New Roman 12pt or Arial 11pt are to be used with neat and presentable line spacing.
You are expected to demonstrate your effective communication skills and technical knowledge by presenting a limited SoA that is focused on client needs and in line with ethical, professional, and legal expectations and requirements. Your limited SoA will be assessed not only from client and compliance perspectives, but also in line with the expected standards in the Course Guide.
To achieve a pass level, you will need to attain an advanced level of detail when writing your limited SoA. Students are expected to devote sufficient time to the preparation of a limited SoA which encompasses both the essential elements and structural elements covered throughout the course work modules. You are expected to produce an original assignment of high academic standard. Remember that clear and concise writing will be rewarded, and penalties apply for poor presentation, and spelling, grammar, and punctuation errors.
ChatGPT:
We are aware of the widespread online use of ChatGPT. Students are discouraged from using it in writing their report and it MUST be acknowledged in your submission if you have used it in any way in writing this report.
In addition, we are aware of what type of response ChatGPT will produce.
Assessment criteria
Your submission will be assessed based on the following assessment criteria.
Marking Criteria Marks
Introduction including covering letter, title page, scope of advice, limitations and executive summary 5
Current situation including personal details, income and expenditure, cashflow, assets and liabilities, goals and issues 7
Risk Assessment including analysis and reasoning, targets and/or benchmarks 6
Strategy Recommendations including superannuation, investments, personal insurances, estate planning and other identified issues 18
Product recommendations for superannuation, investments, personal insurances, and product replacement 13
Effects of recommendations including meeting clients goals and objectives, asset allocation, income, tax and cash flow 10
Review and Implementation including explanation of review process, charges, and setting out the implementation process (timeframe, priorities and responsible entity) 5
Fees and charges including explaining all investment and upfront and ongoing and insurance upfront and ongoing fees and charges 3
Statutory inclusions including all disclosures, conflicts of interest, disclaimers and authority to proceed. 7
Supporting calculations including SmartMoney Tools/Charts, investments reports, research and education material 13
Expression and Presentation including concise language, unexplained jargon, use of tables, diagrams and charts, clear explanation of industry jargon, and organisation of the plan (contents page, logical sections) 3
Total Mark 90
