2011 University Challenge Fact Find Document

About you
Before I make any recommendations, I need to consider your current financial situation and what you would like to achieve now and in the future. This questionnaire will help me do this.
Your details Your name(s) Date Bruno and Felisa Santos 1st July 2011
Please answer the questions as openly and honestly as you can as it will allow me to better understand what you need and what your concerns are. This will then allow me to make sure that any recommendations I make are appropriate for you. If you do not have all the details of your situation refer to things such as last years tax return, superannuation member statements, bank statements, credit card statements and so on. Any financial advice I give you will be based on the answers you provided me with, further discussions we have, statements you provide me with or I obtain from the relevant third parties and investigations I make into your situation. If you need any information at any time, would like to discuss your details further or provide me with updated information, please contact me.
My contact details
Planner Name: Practice name: Phone: Fax: Direct Phone Number: Direct Email: Website:
Representative of AMP Financial Planning Pty Limited ABN 89 051 208 327 AFS Licence No. 232706
Planner The Practice

1300 000 000 1300 000 000
Your personal details

This section captures information about your personal details, such as your current contact details and how you would like to be contacted by us.
Individual details
Client 1 Title Surname Given name Preferred name Sex Marital status Date of birth Tax resident of Australia Country of residence Country of citizenship Yes Male Mr Santos Bruno Female Married 01/03/1986 No Yes Male Client 2 Mrs Santos Felisa Female Married 11/05/1986 No
Australia Other: Australia Other:
Australia Other: Australia Other:
Contact details
Client 1 Home address 7 Tree Street, Leafdale Client 2 Same
Work address
Other address
Work Home 1234 4321 045 670 890 bc@hotmail.com Mobile Other Work
Home Same st@hotmail.com Email Other
Mailing address Home phone Work phone Mobile phone Fax Email Contact me by
This document contains confidential information and is for educational purposes only.
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About your family

This section captures information about your family, including your children and other family members that are dependant on you. This helps me consider both you and your family when I make my recommendations.
Dependants/Children
You have no children/dependants at this time 1 Surname Given names Date of birth Sex Is he/she financially dependent on you? If yes, until when? Do any of your children have special needs? Do you have any other financial dependants? Are there other family matters I should know? Yes No Yes No Yes No Male Female Yes No Male Female Yes No Male Female Yes No Male Female Yes No 2 You choose not to provide these details now. 3 4
Notes: Bruno & Felisa advised they have no plans to start a family within the next 5 years.
Notes Bruno and Felisa have recently married and moved into a rental property. They are paying weekly rent of $400 per week.
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Whats important to you?

This table lists some of the reasons why people seek financial advice. To complete this section: Read each reason and tick the ones that are important to you. Include any other reasons why you have come to see me in the blank rows. Rank each reason in order of priority. 1 = high, 2 = medium, 3 = low. Select your preferred timeframe. Short = within a year, medium = 1- 5 years, long = more than 5 years.
Lifestyle and family

Timeframe I need to develop a budget and stick to it. Id like to save money for a planned expense. Id like to save for my childrens education. Id like to save for a deposit to buy a home. Short Short Short Short Short Short You have no lifestyle/family goals at this time Medium Medium Medium Medium Medium Medium Long Long Long Long Long Long Priority 3 2 N/A 1 Amount
You choose not to provide these details now
Notes: Planned expenses are for an overseas holiday every 2 years for the next 5 years.
Debt management
Timeframe Id like to pay off my debt sooner. Id like to manage my debt more easily. Id like to reduce the amount of interest I pay. Increase cashflow for other purposes Increasing my debt to fund another purchase Borrow money to invest Accessing specific loan features features Short Short Short Short Short Short Short Short Short You have no debt management goals at this time Notes Medium Medium Medium Medium Medium Medium Medium Medium Medium Long Long Long Long Long Long Long Long Long Priority 2 Amount
Estate planning eg Wills, power of attorney

Timeframe I need help with developing an estate plan I would like to review my estate planning needs Short Short Short You have no estate planning goals at this time Medium Medium Medium Long Long Long Priority Amount
Notes: Full estate plan recently completed through the family lawyer.
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Superannuation planning
Timeframe I would like to combine my super funds. I would like to move my super fund somewhere more suitable. Id like to build retirement savings through superannuation tax effectively. Id like to align the way my super assets are invested with my attitude to risk. I want to make sure my superannuation funds are passed on according to my wishes. I need to work out if Im saving enough to support myself in retirement. Id like to increase my retirement savings without impacting my cashflow. Id like to make the most of Centrelink benefits. Id like to consider if an SMSF is appropriate for me Short Short Short Short Medium Medium Medium Medium Long Long Long Long Priority Amount
Short
Medium
Long
Short
Medium
Long
Short Short Short Short Short
Medium Medium Medium Medium Medium
Long Long Long Long Long
You have no superannuation goals at this time
Notes: Bruno & Felisa consolidated all super accounts into each others employer plan last year.
Retirement planning
Timeframe Im approaching my retirement and Id like to know my options regarding my superannuation. Id like to receive a regular income. Id like to make the most of Centrelink benefits. Id like to align the way my assets are invested with my attitude to risk. Short Short Short Short Short Short You have no retirement planning goals at this time Notes Medium Medium Medium Medium Medium Medium Long Long Long Long Long Long Priority Amount
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Personal insurance planning

Timeframe Id like to review my current insurance cover to make sure its adequate and cost effective. I want to make sure my family is adequately provided for if I die unexpectedly. I want to make sure my family is adequately provided for if I suffer a trauma like a heart attack, stroke or cancer. I am concerned about how I will manage financially if I am sick or injured and unable to work for a long period of time. Id like to pay my insurance premiums in the most tax effective manner. Id like to fund my insurance cover with minimal effect on my cashflow. Short Medium Long Priority 2 Amount
Short
Medium
Long
Short
Medium
Long
Short Short Short Short Short
Medium Medium Medium Medium Medium
Long Long Long Long Long
3 2
You have no personal insurance goals at this time
Notes: Understand the need for protection but are concerned about cost and the impact on cashflow.
Investment planning
Timeframe I have a lump sum that I would like to invest. Id like to invest regularly using cashflow surplus. I want to ensure I have enough cash saved for emergencies or unexpected expenses. Id like to make sure my existing portfolio is still appropriate. Id like to reduce the tax I pay. Id like to simplify my investments. Id like to explore how salary packaging will affect my cashflow and wealth accumulation. Id like to align the way my assets are invested with my attitude to risk. Short Short Short Short Short Short Short Short Short Short You have no investment planning goals at this time Medium Medium Medium Medium Medium Medium Medium Medium Medium Medium Long Long Long Long Long Long Long Long Long Long 2 Priority 2 1 Amount
Notes: Interested in finding out the most effective way to invest their cashflow with the goal of saving for a house/unit.
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Whats important to you?

In order to provide you with appropriate advice, we need to understand why you have come to see us. To complete this section: Please list the reasons why you have come to see me in the blank rows. Rank each reason in order of priority. 1 = high, 2 = medium, 3 = low. Select your preferred timeframe. Short = within a year, medium = 1- 5 years, long = more than 5 years. Timeframe Short Save sufficient deposit to buy own residential property in 5-7 years. Short Travel An overseas holiday in years 2 and 4 Medium Long 2 $10,000 per holiday Medium Long 1 TBA Priority Amount
Short
Medium
Long
Short
Medium
Long
Short
Medium
Long
Short
Medium
Long
Short
Medium
Long
Short
Medium
Long
Short
Medium
Long
Short
Medium
Long
Notes: Prime goal is they want to buy a family home with a 20% deposit but are unsure what they can afford. They do not want to over stretch themselves. They run a strict budget and want future mortgage repayments to be approximately $3,200 per month, i.e. current monthly cash surplus plus allowance for rent.
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Superannuation planning considerations

This section captures information about any concerns you have with your superannuation planning and any specific issues you would like to address. You have no super planning needs now. You choose not to provide these details now. Client 1 Have you made a personal contribution in the last 3 years? Yes No Date: Amount:$ Tax deductions claimed: $ Yes Yes Date: Amount $ Yes Yes Yes* Yes No No Unsure Unsure Client 2 Yes No Date: Amount:$ Tax deductions claimed: $ Yes Yes Date: Amount $ Yes Yes Yes* Yes No No Unsure Unsure
If yes, give details

Does your employer allow you to salary sacrifice? Have you previously received the low rate cap on lump sum super withdrawals?
If yes, give details

Do you have lost super funds? Do you want a lost super search conducted? Have you received an Employment Termination Payment? Do you prefer/wish to avoid any investments? If yes, please give details.
* Attach a copy of your statement.
No
Unsure No No No
No
Unsure No No No
Which product features interest you?

Client 1 Being able to keep the super fund when changing employers. Being able to pay for advice fees through the super fund. Being able to access a wide range of investment options Specific investment preferences. eg ethical, environmental Being able to make binding death benefit nominations. Being able to take out extensive insurance cover within the fund. A fund that is offered by a large established financial institution. Being able to access details online. Notes (Where are/is your current superannuation fund)? Client 2
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Retirement planning considerations

This section captures information about any concerns you have in relation to your retirement planning and any specific issues you would like use to address. You have no retirement planning needs now. You choose not to provide these details now. Client 1 When do you plan on retiring? How much income do you think you will need in retirement? Which assets will you use to fund your retirement, other than superannuation? Do you have any planned expenses in retirement? Will you downsize your home? Yes $ Yes No No $ Yes No Yes No Client 2
If yes, amount you will free up

Do you prefer/wish to avoid any investments? If yes, please give details. Notes
Investment planning considerations

This section captures information about any concerns you have in relation to investment planning and any specific issues you would like to address. You have no investment planning needs now. Client 1 How long would you be willing to invest your money for, before you would need to access it? Do you prefer direct (shares) to managed investments? Do you prefer any investments? If yes, please give details. Are there any investments you wish to avoid? If yes, please give details. Is borrowing to invest something youd consider? Are you prepared to use your home as security for investment borrowing? Do you have any unused capital losses from previous years? Notes: See risk profile discussion. < 2 years 3 5 years > 7 years 2 3 years 5 7 years You choose not to provide these details now. Client 2 < 2 years 3 5 years > 7 years 2 3 years 5 7 years
Yes No Not sure need advice Yes No
Yes No Not sure need advice Yes No
Yes
No
Yes
No
Yes
No
Yes
No (Unsure)
N/A Yes No If yes, how much? $
N/A Yes No If yes, how much? $
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About your employment

This section captures information about your current employment situation. This helps me to understand any issues needing consideration when providing you with advice, for example, for advice on insurance, your daily duties may affect your premiums if you work in a high risk industry. Client 1 Employee Selfemployed Retired Occupation type Semi-retired Retired from ill health Sole trader Home Duties Unemployed Permanent full time Permanent part time Employment type Fixed term Casual Contract Contract end date:. Employer name Number of hours a week Occupation Industry Main duties Office Duties School Teacher Telco Pty Ltd 40 Technician Telecommunications Client 2 Employee Selfemployed Retired Semi-retired Retired from ill health Sole trader Home Duties Unemployed Permanent full time Permanent part time Fixed term Casual Contract Contract end date:. Education Department 40 Teacher Education
Qualifications Do you currently have a salary package in place? If yes, please give details
Degree Yes No
Degree Yes No
Notes
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About your income and expenses

This section captures information on your income and expenses to help me understand your current cashflow situation. This allows me to make appropriate recommendations while considering any cashflow shortages or surplus you have. You can provide me with your last tax return if you are unsure of any of the following details.
Income
Income description Client 1 $ a year $75,000* N/A Amount: N/A Current Centrelink or Department of Veterans affairs benefit amount Payment name: Amount: N/A Payment name: Client 2 $ a year $78,000* N/A -
Base salary or wages Bonus / allowance Annuity / allocated pension Rental income Share / investment income Foreign pension income Maintenance income
Centrelink reference number CRN:
Centrelink reference number CRN: -
Other taxable income Other non-taxable income Total Reportable fringe benefits Are you expecting your income to change in the foreseeable future? Provide details
Nil
Nil
No Annual Increase with CPI
No Annual Increase with CPI
* Plus 9% Superannuation Guarantee paid on top of this.
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Annual household expenses/surplus

Category Complete either option 1 or 2: 1. Estimated total annual household expenses. Are loan repayments included? Are insurance premiums for personal risk, included? 2. Estimated annual surplus - after household expenses, loan repayment and insurance premiums. What % of your expenses are variable? Are you expecting your expenses to change in the foreseeable future? Yes Expect to repay car loan soon $ Yes Yes No No
See Below*
Provide details
*A complete budget analysis reveals a monthly surplus of $2,000 per month. This surplus is calculated after taking into account all their current living expenses and rent. It includes the current car loan repayments, however it does not take into account the new honeymoon debt on their credit card which they estimate to be $4,000.
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About your assets and liabilities

This section captures information about your current financial situation - what you currently own and owe. You can give me current statements rather than completing the tables below.
Personal assets (excluding assets which generate income)

You have no personal assets.
Owner Description
You choose not to provide these details now.

Estimated market value $ Estimated Centrelink value $ Retain
Joint
Other
Principal residence Home contents Motor vehicle 1 Motor vehicle 2 ABC Bank XYZ Bank XYZ Online
n/a $30,000 $19,000 $12,000 $2,000 $3,000 $4,000 N/A N/A N/A N/A N/A N/A
Notes: They normally upgrade their motor vehicles every 5 years. They normally spend $25,000 on a new vehicle. MV1 = 2010 Mitsubishi Lancer MV2 = 2007 Toyota Corolla
Investment property assets

You have no investment property.
Owner Description

Date of purchase / Price $ Estimated market value $ Net income pa* $ Retain
Joint
Other
Property 1 $ Property 2 $ Property 3 $
Notes * This includes the gross rental income less any property expenses (not including loan repayment
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Cash / fixed interest assets

You have no cash/fixed interest assets.
Owner Description

Market value $ Interest rate % Maturity date Retain
Joint
Other
See previous.
Notes
Liabilities (including credit cards)

You currently have no liabilities.
Owner Loan type and lender

Balance o/s $ Interest %pa Payment amount / freq Tax deduct % pa Retain
Joint
Other
Interest only XYZ Credit Card $4,000 21%
$1,000/ month
Interest only ABC Credit Card $1,000 20%
$1,000/ month
Interest only Car loan for Brunos Car $6,000 12%
$400/ month
Notes: The XYZ credit card debt was accumulated on their recent honeymoon. Felisas credit card is used to pay a range of joint living expenses and is paid off monthly with no interest payable. Brunos car loan has approximately 20 months remaining - with no early repayment fees applicable.
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Investment, superannuation and income stream summary

Investment assets eg shares, managed investments or master trusts
You do not own any investment assets.
Owner Investment name

Account number (are dividends Reinvested Yes Tick box) No of Shares/ Balance $ Statement attached
Joint
Other
Type
Notes
Superannuation assets
You do not have any superannuation assets.
Owner Superannuation fund

Account number Balance $ Statement attached
Telco Superannuation Fund State Superannuation Fund
9876 5678
$14,000 $16,000
Notes
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Investment, superannuation and income stream summary

Retirement income streams
You do not have any retirement income streams.
Owner Fund name

Account number Balance (account based) Income pa $ Statement attached
Notes
Insurance summary
Insurance policies
You do not have any insurance policies.
Owner Life insured Insurance company

Type and level of cover Life / TPD Trauma / IP Statement attached
Joint
Policy number
Bruno Death & TPD
Telco Superfund
N/A
Type: Life & TPD $100,000 \ Type: Life & TPD $100,000 \ Type: TSC 75% for 2 years Type: $ \ Type: $ \ Type: $ \ Type: $ \
Felisa Death & TPD
Education Superfund
N/A
Felisa Temporary Salary Continuance
Education Superfund
N/A
Please provide copies of your policies where relevant.
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Insurance needs analysis

Life insurance analysis
You do not have any life insurance needs. Client 1 Lump sum required ($) Clear debts eg mortgage, personal loans Funeral costs Emergency fund Capital needs Income required (pa) For how many years? Childcare/education (pa) For how many years? Other funding (pa) For how many years? Income replacement (lump sum required) Investment property $ Direct shares $ Realisable financial assets Cash assets $ Superannuation $ Other $ Realisable lifestyle assets Total cover required Existing cover retained Additional cover required or Amount of over-insurance Notes: Seek guidance on what are appropriate levels of cover. Home $ Other $ Investment property $ Direct shares $ Cash assets $ Superannuation $ Other $ Home $ Other $ You choose not to provide these details now. Client 2 Lump sum required ($)
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TPD analysis
You do not have any TPD insurance needs. Client 1 Lump sum required ($) Clear debts eg mortgage, personal loans Medical / lifestyle Emergency fund Recovery income Capital needs Income required (pa) For how many years? Childcare/education (pa) For how many years? Other funding (pa) For how many years? Income replacement (lump sum required) Investment property $ Direct shares $ Realisable financial assets Cash assets $ Superannuation $ Other $ Realisable lifestyle assets Total cover required Existing cover retained Additional cover required or Amount of over-insurance Notes: Seek advice Home Other Investment property $ Direct shares $ Cash assets $ Superannuation $ Other $ Home $ Other $ You choose not to provide these details now. Client 2 Lump sum required ($)
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Trauma analysis
You do not have any trauma insurance needs. Client 1 Lump sum required ($) Clear debts eg mortgage, personal loans Medical / lifestyle Emergency fund Recovery income Capital needs Income required (pa) For how many years? Childcare/education (pa) For how many years? Other funding (pa) For how many years? Income replacement (lump sum required) Investment property $ Direct shares $ Realisable financial assets Cash assets $ Superannuation $ Other $ Realisable lifestyle assets Total cover required Existing cover retained Additional cover required or Amount of over-insurance Notes: Seek advice Home $ Other $ Investment property $ Direct shares $ Cash assets $ Superannuation $ Other $ Home $ Other $ You choose not to provide these details now. Client 2 Lump sum required ($)
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Income continuation analysis

You do not have any income protection needs. Income continuation analysis Occupation Income % of income to cover Superannuation maintenance benefit Total cover required (pa) Less Income not affected by disability Existing cover Additional cover required (yearly) Additional cover required (monthly) Benefit period Waiting period Notes: Seek advice Client 1 You choose not to provide these details now. Client 2
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About your health

This section captures information on your current state of health and issues I may need to know about as this may impact any advice I provide you, particularly personal insurance. Client 1 How would you rate your current health? Excellent Average Yes Not disclosed Good Poor No Client 2 Excellent Average Yes Not disclosed Good Poor No
Do you currently have any personal health, lifestyle or occupation issues that may affect you? If yes, please detail Have you smoked in the last 12 months? Do you have private health cover? If yes, what type of cover? Do you currently take any medication If yes please provide details
Yes Yes
No No
Yes Yes
No No
HCF Hospital Cover Yes No
HCF Hospital Cover Yes No
Do you currently take any family history of illness such as diabetes, cancer etc If yes please provide details
Yes
No
Yes
No
Breast Cancer Mother, aged 52. Diagnosis - Currently in Remission
Have you had any surgery If yes please provide details
Yes
No
Yes
No
Who is your health insurance provider? Notes:
HCF
HCF
Both clients advised they have no hazardous hobbies or pursuits.
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Estate planning
This section captures any concerns you may have in relation to your estate planning needs. It helps me understand some of the gaps you might currently have, what you would like to achieve and the level of assistance that you need from myself or other parties, such as an estate planning specialist or your solicitor.
Wills
You do not have any estate planning needs. Client 1 Do you have a Will? If yes, provide details: Last updated Name of Executor Is it up to date and reflects your current wishes? eg have you remarried or had more children? Do you have a testamentary trust provision? Are you concerned about your beneficiaries paying tax on inherited assets? Would you like information on how to manage this? Would you like help with your estate planning needs? Yes No Yes No Yes No Yes You choose not to provide these details now. Client 2 No
Yes
No
Yes
No
If yes, who is the trustee?
If yes, who is the trustee?
Yes
No
Yes
No
Yes Yes
No No
Yes Yes
No No
Power of Attorney
Client 1 Do you have a Power of Attorney? If yes, provide details: Type of Power of Attorney Who is the person named as your Power of Attorney? Date of execution Notes: Yes No Yes Client 2 No
General
Enduring
General
Enduring
Have recently had a complete review and documents prepared by family lawyer.
However, have noted that neither client has nominated beneficiaries on their employer superannuation funds.
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Risk profile
Your risk profile looks at investment risk and your attitude to it. By asking you more detailed questions we can determine the most appropriate investment strategies to match your investment risk profile. Once all the sections are complete, we will discuss your scores and whether or not you are comfortable with the outcome. Where you hold assets jointly, you and your partner need to agree on a combined score. 1. What is your major investment objective? Avoid any fluctuation in the value of my investments. Maintain the security of my investments with regular income to live on. Maintain regular income with some exposure to capital growth. Maximise the growth of my investments. 2. How would you react if your investments were to decline in value by 20% in one year? Withdraw all my funds immediately and move them to bank deposits. Withdraw part of my money and move it to an alternative strategy. Wait until I recovered the 20% loss and then consider alternative strategies. Remain invested and follow the recommended strategy. Increase the amount invested if possible because the market has become cheaper. 3. An investment portfolio with high exposure to growth assets tends to generate higher returns, albeit with some volatility. To what extent are you willing to experience volatility to generate higher returns? Im very comfortable. I understand that to generate higher returns there is risk of fluctuation of my investments in the short term. However, over the long term, there is a low risk of capital loss. Im somewhat comfortable, assuming there is a limit to the volatility. Im a little uncomfortable seeing my investments fluctuate. Im much more comfortable with investments that have minimal volatility. 4. Which of the following best describes your attitude towards investment losses? I would check the value of my investments several times a month and feel very uneasy if I began to lose money. Daily losses make me uncomfortable, but are not cause for alarm. I would, however, start to feel very uneasy if I made a loss on my investments over a 12-month period. I take substantial day-to-day changes in my stride. However I would start to feel very uneasy if I didnt recover any significant losses within a 1 to 2 year time frame. If my investment suffered significant losses over a 2 year period and I still believed in my long-term strategy, I would remain fully confident of a recovery in performance. 5. What is your preferred strategy for managing investment risk? To have a diversified investment portfolio across a range of asset classes to minimise risk I don't want to reduce it as investment risk leads to higher returns over the long-term. To invest mainly in capital stable investments. I don't understand the definition of 'investment risk'. I rely on my financial planner to achieve this. 6. In the past, how would you describe your overall investment decisions? 30 40 10 0 Score 0 10 20 40 Score 10 20 20 30 40 1 2 Joint 1 2 Joint
Score
Joint
40 30 20 10 Score 10 1 2 Joint
20
30
40 1 2 Joint
Score
Joint
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Not applicable. I'm a first time investor or have only ever invested via my superannuation fund Good, I have stuck to stable and safe investments. Good, I have been rewarded for making investments that can fluctuate in value. Fair, however I would like to improve my returns. Ive had some losses, but am willing to give it another go. Ive had some losses and am reluctant to invest in anything that fluctuates in value. 7. Which of the following best describes your understanding of the investment market? I am an experienced investor and constantly keep up to date with the investment market. Ive had exposure to various asset classes and am fully aware of the risks involved to gain high returns. My awareness of the financial market is limited to information passed on by my broker or financial planner. I rely on the professionals to keep me up to date. I have little awareness of the investment market. However, I have a desire to build my knowledge and understanding. Im not familiar with investments or financial markets. 8. What is your willingness to risk shorter term losses for the prospect of higher longer term returns? High Moderate Not sure Low 9. Have you ever borrowed money to make an investment other than your own home eg investment property, holiday home, share portfolio, margin loan etc? No Yes No, but Im willing to consider it now Yes, but Im not prepared to borrow at the moment to invest Total score Add up the scores for each question and record the totals. According to the information below, what is your risk profile? If you dont agree with above, what is your preferred risk profile?
20 10 40 20 30 0 Score 1 2 Joint
40
30
20 10 Score 40 30 20 10 Score 0 30 20 10 Client 1 280 260-300 Mod. Aggressive Client 2 130 130 Cautious Unsure Joint 1 2 Joint 1 2 Joint
Risk benchmarks
Score N/A 50 - 110 111 160 Investment risk profile Short duration (100% cash) Conservative (25% growth) Cautious (40% growth) Score 161 - 210 211 260 261 310 311 350 Investment risk profile Moderately conservative (55% growth) Balanced (70% growth) Moderately aggressive (85% growth) Aggressive (100% growth)
See appendix 1 for explanation of risk profiles.
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Are you willing to consider a trade-off?

I am here to help you achieve your goals and objectives if possible and whilst I can help you to understand how you may be able to maximise your current investments, there may still be a gap between where you want to be and what your attitude to risk allows you to achieve. Think about how comfortable you feel with the level of risk you are willing to take across all your investment assets. Whilst you may be comfortable with this, you may not be able to meet you financial or lifestyle objectives. Lets say that you are a cautious investor, so you dont want to take big risks. If you have a short timeframe in which to grow your assets, you may not be able to achieve your desired goals and objectives and need to reconsider your options. This may mean a trade-off where you might consider investing a little bit more aggressively or reconsider your goals and objectives. This will give you a greater chance of achieving them. I can help you understand your options so that you choose what is right for you. Please choose which of the options below you would be willing to consider if it is unlikely that you will achieve your goals and objectives. If it is unlikely that you will be able to meet your goals, which option would you consider? Make changes to my current lifestyle now by spending less and saving more. Make changes to my lifestyle at a later stage by spending less eg in retirement Downsize my lifestyle assets, or reduce my planned expenses. Delay my retirement. Increase my exposure to growth assets, giving me increased investment risk. Borrow funds to invest. Reduce the estate I leave to my beneficiaries. Revise my financial goals. Other (provide list below): Notes:
A detailed discussion was held regarding their different attitudes to risk. I explained risk/return trade-off and the different asset allocation options were discussed. Agreement on appropriate defensive/growth ratio was agreed upon.
Risk/Return Trade-Off
Growth
Risk
Return
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AMP Horizons Financial Group
Appendix 1 - Investor risk profile summary

Your attitude to investment risk is a crucial factor in determining an appropriate investment strategy to meet your needs. Investing is considered risky because there is uncertainty about how the investment will perform over the short and long term. Different types of investments experience different levels of volatility. Negative returns can happen at any time, so during periods of poor performance, remaining invested for the minimum investment term will provide an opportunity for your portfolio to recover. Here are the main approaches to investing, otherwise known as investment risk profiles. Score N/A Risk profile Short duration (100% cash) Conservative (25% growth) Description Protection of capital or certainty of income is your only objective. You do no wish to attain higher returns if your capital is at risk You are a defensive investor. You are willing to consider less risky assets; mainly cash only and some fixed interest investments. You are prepared to accept lower returns to protect the value of your capital. The recommended minimum investment term is 2 years. You are a cautious investor seeking a combination of income and growth, but risk must continue to be low. Therefore, you will maintain a greater weighting to defensive assets within your portfolio, but, will consider including some of the less aggressive growth investments. Generally you are willing to chase improved short-term returns while accepting some, limited short-term volatility. The recommended minimum investment term is 3 years. You are an investor seeking a combination of income and growth from your investment portfolio. Generally, you are willing to chase medium to long-term goals while accepting the risk of short to medium-term negative returns. Your investment mix is likely to include an equal mix of the defensive assets and growth assets such as equities and property. The recommended minimum investment term is 4 years. You are a growth investor. You are willing to consider assets with higher volatility in the short-term (such as equities and property) to achieve capital growth over the medium to longer term. Your investment mix will comprise a greater share of growth assets. The recommended minimum investment term is 5 years. You are a growth investor. Prepared to accept higher volatility in the short to medium term, your primary concern is to accumulate growth assets over the long term. Your investment mix will spread across all asset sectors but will mainly consist of more aggressive investments. The minimum investment term is 7 years. Your primary objective is capital growth. You are an aggressive growth investor and are prepared to compromise your portfolio balance to pursue greater long-term returns. You are willing to accept higher levels of risk. Fluctuation in capital is acceptable in the short-medium term for the greater potential for wealth accumulation. With the exception of a minimal level of cash for liquidity purposes, your investment mix will only consist of growth assets such as international and domestic equities. The minimum investment term is 7 years.
50 110
111 160
Cautious (40% growth)
161 210
Moderately conservative (55% growth)
211 260
Balanced (70% growth)
261 310
Moderately aggressive (85% growth)
311 350
Aggressive (100% growth)
AMP Horizons Financial Group
Appendix 2 Economic Assumptions

There are a number of important assumptions we make in formulating this advice. These assumptions are outlined in the table below. These assumptions are also used to calculate the future projections and cashflow analysis that may be included with this advice. Assumptions Projection start date Indexation rate (CPI) AWOTE index rate Income received Cost of living Interest on loans Taxation Superannuation Centrelink/DVA Fees 01 July 2011 2.6% per annum. It is applied to all expenses annually. 4.0% per annum. It is applied to annual salary/income. Investment earnings are assumed to be received annually. Indexed by CPI and recorded in the year of expected outlay. Interest cost remains constant 7.5% Current tax rates have been used. The income, capital gains and superannuation tax rates are assumed to remain constant. Earnings taxed at 15%. Eligibility criteria and entitlements are assumed to remain constant. Upfront fees taken into account are entry fees and planner servicing fees. Ongoing fees taken into account are management fees / MERs and planner servicing fees. However the financial analysis does not take into account any feerelated tax deductions or GST credits that may be available from the products. Income* 5.00% 5.50% 5.50% 4.75% 3.00% 3.50% 2.50% Growth* 0.00% 0.00% 0.00% 3.75% 3.50% 6.00% 6.50%
Net worth Cash Aust Fixed Interest International Fixed Interest Listed Property Residential Property Aust. Shares International Shares
*These are the long term nominal rates of return by asset class.

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About you

Planner The Practice

Your personal details

Australia Other: Australia Other:

Australia Other: Australia Other:

Home Same st@hotmail.com Email Other

About your family

Whats important to you?

Lifestyle and family

You choose not to provide these details now

You choose not to provide these details now

Estate planning eg Wills, power of attorney

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Short Short Short Short Short

Medium Medium Medium Medium Medium

Long Long Long Long Long

You have no superannuation goals at this time

You choose not to provide these details now

You choose not to provide these details now

Personal insurance planning

Short Short Short Short Short

Medium Medium Medium Medium Medium

Long Long Long Long Long

You have no personal insurance goals at this time

You choose not to provide these details now

You choose not to provide these details now

Whats important to you?

Superannuation planning considerations

If yes, give details

If yes, give details

Which product features interest you?

Retirement planning considerations

If yes, amount you will free up

Investment planning considerations

Yes No Not sure need advice Yes No

Yes No Not sure need advice Yes No

N/A Yes No If yes, how much? $

N/A Yes No If yes, how much? $

About your employment

About your income and expenses

Centrelink reference number CRN:

Centrelink reference number CRN: -

No Annual Increase with CPI

No Annual Increase with CPI

* Plus 9% Superannuation Guarantee paid on top of this.

Annual household expenses/surplus

About your assets and liabilities

Personal assets (excluding assets which generate income)

You choose not to provide these details now.

Investment property assets

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Property 1 $ Property 2 $ Property 3 $

Cash / fixed interest assets

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Liabilities (including credit cards)

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Interest only XYZ Credit Card $4,000 21%

Interest only ABC Credit Card $1,000 20%

Interest only Car loan for Brunos Car $6,000 12%

Investment, superannuation and income stream summary

You choose not to provide these details now.

You choose not to provide these details now.

Telco Superannuation Fund State Superannuation Fund

Investment, superannuation and income stream summary