Statement of AdviceStatement of Advice Prepared for Tom and Uli BaxterBy ________________On your financial situation as at 30th June 2010You had requested for my advice on building wealth between now and your retirement age, which is 63 years for Uli and 59 years for Tom. Tom, you had indicated that you are uncomfortable with a single superannuation strategy. I have taken that into consideration. Among the issues that you had wanted us to discuss is the Landlord Insurance as well as refinancing of the loan. I have included a balance sheet as at 30th June 2010 and 30th June 2011 and another one at each of your retirement ages.
The Statement Of Advice (SOA) will include cash flow statement as at 30th June 2010 and a projected cash flow for the periods ending 30th June of 2011, 2016 and 2023. Summary of my adviceImportant Information about youThis part of the SOA contains the information that I gathered from you which I have used in order to come into a conclusion on the best advice on your retirement financial planning.
It is divided into three subsections; one on your goals and objectives; secondly, the personal and financial information that I received from you and lastly, a section on the risks and the risk profile. My advice is based on your goals and objectives which are as follows. That Tom’s superannuation not to be in a single superannuation strategy To create wealth by both inside and outside superannuation Minimize the taxes as well as get some advise on TTR (time to recover)Advise on the offset account that they have and to be advised if you need to change the banks.
You needed advise on the investment loan which is currently on principle and interest basis and advise if they need for a better arrangement on this loan Your savings goals include a car worth of $55,000 at year six, to save for a holiday worth 20,000 at year 2, to save for weddings 5 years from today plus to ensure that your loans are repaid by the time of retirement. Your retirement requirements financial needs to be $60,000You indicated that your highest personal priority is to save for short term i. e.
for a home or a holiday followed. This was followed by medium term saving for early mortgage repayment as well as for protecting against sickness and accident tallied and came in as second. Limitations to the SOAThis advice is however limited to an extent that you had indicated that you are comfortable with the arrangements of the existing estate planning and on the information you have on the social security entitlements. You had also decided that it was too early for a discussion on the type of retirement income streams that suits you during retirement.
Your personal informationTom Uli49 years old46 years of ageNo smokingNo smoking No Standard of healthExcellent standard of health Full cover HBAFull cover HBA History of longevity History of early death from heart diseaseTo retire at 59 years (10 more years)To retire at 63 years (to retire in 17 more years