Ava and Ethan, both in their early 40s, jointly own their home worth $1,200,000 and have two cars worth $35,000 each. They also have the following investment assets:

• A jointly owned rental property worth $800,000 with a mortgage of $300,000,
• Jointly owned savings account with a balance of $200,000,
• Ethan owns a term deposit - 18 months fixed with an interest of 4% and a deposit amount of $75,000,
• Ava owns Australian shares primarily in blue-chip companies acquired in 2016 for $120,000, now worth $300,000,
• Superannuation for Ava and Ethan worth $250,000 and $220,000 respectively. Neither has a binding death nomination.
• The couple's superannuation accounts are invested in a fund with the following allocations: Cash 10%; Fixed interest 20%; Australian shares 30%; Property 15%; International shares 25%.
• Ethan earns $200,000 p.a., and Ava earns $60,000 p.a. working part-time. The couple has three children aged 10, 15, and 19 years old.

 

Based on their current asset allocation, what type of investor profile would you classify Ava and Ethan into?

Ava and Ethan have requested advice on whether they should consolidate all their assets into a discretionary/family trust. Discuss the potential advantages and disadvantages of having a discretionary trust as part of their financial planning strategy. As part of your discussion, indicate whether the existing assets can be transferred into a discretionary/family trust and any implications

Ava is considering investing in a technology-focused Exchange Traded Fund (ETF) but is unsure whether she should invest in the ETF or a similar technology-focused managed fund. Explain the key differences between ETFs and managed funds and discuss the advantages and disadvantages of each investment vehicle. Based on Ava's risk tolerance and investment goals, provide a recommendation on which investment option might be more suitable for her.

Answer rating: 100% (QA)

Based on the provided information Ava and Ethans current asset allocation indicates a balanced investor profile Their investments are diversified across different asset classes including property shar... View the full answer