The paper 'The Differences between Various Investment Opportunities' is a great example of a financial and accounting term paper. In our first meeting, we were able to introduce ourselves to each other and get to know about our future relationship. During that meeting, I left a copy of a financial services guide that is offered by our company. and from our introductory meeting, there were questions that were raised and some of them included; what an offset account is, the benefits of having a structure for your business specifically the differences between a company and a sole proprietorship, the differences between various investment opportunities such as managed funds, exchange-traded funds, investment companies as well as a family trust.
You also asked about socially responsible investment opportunities. This report will cover all those questions as well as share with you more information on financial planning. Introduction to financial planningFinancial planning refers to a sequence of steps pr stages that have been set out by individuals, businesses, or even organizations whose ultimate goal is financial progression. Financial planning includes a variety of steps or activities some of which you have mentioned such as clearing out your credit debts before the arrival of your children as well as making investments in various financial opportunities.
The main objective of a financial plan is to allocate present as well as future earnings or income to your various needs and wants as a couple and also a family in the future. A financial plan is also an investment plan because it helps you as a couple and as a family to also reserve some of your present and future earnings for your future needs such as education funds, retirement, estate planning and also the management of risk among others (Meigs, Walter, and Robert, 2000). There are a number of assumptions that we are making as we prepare this report for you (Chris and Fiona) and these include; you have read all the information provided in our financial services guide and that you are aware of the products that we offer our esteemed clients, the figures that you provided me with have not changed and also the fact that we are going to have a second meeting we are assuming that you have chosen our company to help you make your financial plans to ensure that your future and that of your children is well catered for.
We are also to answer the questions that you had risen in our previous meeting and finally give you advice on the best investment opportunities for you as a couple and a future family (Mittra, Sahu, & Crane, 2007). What is an Offset Account? An offset account is a savings account that can be used to offset or cancel out your loan account.
The new account created or your normal transactional account can be used to gradually reduce your loan account and during that process, the account will not bear you any interest, unlike other savings accounts. Given that as a couple you already have $5000 in a joint account for the everyday banking that bears you zero interest, you could use that account to gradually cancel out the loan you took to purchase the house. An offset account also helps to reduce the interest payable at the end of the month given the gradual reduction from the offset account reduces the principal amount which ultimately reduces the interest charge that is calculated on the loan that you have taken (Australian and New Zealand Banking Group, 2014).
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Public Trust, 2014, What is a family trust? Retrieved on 14th August, 2014 from http://www.publictrust.co.nz/life-events/planning-retirement/family-trust/what-is-a-family-trust
Australian Investors Association, 2012, Listed Investment Companies (LICs). Retrieved on 14th August, 2014 from http://www.investors.asn.au/education/shares/listed-investment-companies-lics/
Australian Securities and Investment Commission, (2014). Managed funds. Retrieved on 14th August, 2014 from http://www.moneysmart.gov.au/investing/managed-funds
Australian and New Zealand Banking Group, (2014). Offset Account. Retrieved on 14th August, 2014 from http://www.anz.com/personal/home-loans/our-home-loans/extras/offset-account/
Cater, Christopher. (2014). Advantages and disadvantages of different Business Structures. Retrieved on 14th August, 2014 from http://wwww.smallbusiness.chron.com/advantages-disadvantages-different-business-structures-21149.html
Meigs, Walter and Robert, F. (2000). Financial Accounting 4th Edition. London: McGraw Hill Book Company.
Mittra Sid, Sahu Anandi, and Crane Robert. (2007). Practicing Financial Planning for Professionals. Rochester: Rochester Hills Publishing, Inc.
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