Case study introduction: Michael (49) and Sue (48) are married. Michael works as a Construction Manager earning $140,000 per annum plus Super Guarantee (SG) contribution. Sue is a part-time Brand Consultant earning $50,000 per annum plus SG. Michael and Sue feel as though they have been living comfortably and enjoy their current working arrangements but would now like to get some professional assistance to ensure they prepared financially for retirement. In doing this, Michael and Sue have confirmed that their priority is to address their immediate concerns. They have come to you for advice on strategies to reduce their mortgage as they ideally want to retire with as little debt as possible. They don't want specific product advice because they're happy to deal directly with their bank in choosing and implementing specific products. They also want help with making better use of their surplus cashflow as they tend to spend their surplus cashflow and have struggled to save. Michael has accumulated three superannuation funds via previous employer arrangements. They now want to organise Michael's superannuation into one of his existing funds to make it easier to track and to ensure his retirement savings are invested appropriately for his situation. Sue is happy to consider strategies to boost her superannuation balance, but Sue does not want advice relating to her superannuation product as she manages this herself via her employer and is comfortable with the current structure. They have two sons, Shilo (17 years) and Bede (12 years) and are now starting to give more thought about their family's insurance needs after Michael's father passed away in 2020 from a heart attack. They want to take this opportunity to better understand the personal insurance options and whether this is something they should consider arranging, but do not want to implement insurance at this time. You have had a comprehensive meeting with them and have completed relevant sections of the fact find document (refer attached). The budget discussion you had with them reveals they expect to be able to save approximately $23,030 per annum. They have each completed a risk profile with you that included a detailed discussion about their individual risk profiles as well as their joint investment risk profile. Michael agrees with his "85% Growth" investor risk profile outcome and wishes to align his superannuation funds to this preference for risk and return. Sue agrees with her "70% Growth" investor risk profile outcome and wishes to align her superannuation funds to this preference for risk and return. Michal & Sue agree with their joint "70% Growth" investor risk profile outcome and would consider aligning relevant joint investments to this preference for risk and return. Primary goals: Michael and Sue want advice on how to reduce their home loan. They want strategic advice that considers their current home loan structure and potential strategies they could use to eliminate their debt faster. They have confirmed that they do not want any specific mortgage product recommendations. Michael and Sue want advice on how to grow their retirement savings effectively. For Michael, this includes determining which of his superannuation funds is most appropriate to consolidate into, and ensuring he is invested in line with his risk appetite. For Sue, this is limited to strategic advice that would allow her to boost her superannuation balance. She does not want any product specific advice. Michael and Sue want advice on how to utilise their surplus cash more effectively and reduce the likelihood of them spending their surplus funds unnecessarily. They are open to investing the surplus, but it is important to them that some of the funds remain accessible to them if they are needed. In addition to the above goals, Michael & Sue want general information regarding their personal insurance options in the event of death, disability, injury or illness. They would like to know if this is something they should consider addressing in the future. Scope of advice: Your clients have requested the scope of your advice to include the following: Advice to pay off their home loan faster. Consolidate Michael' superannuation into one of his existing funds. Provide strategic advice to Sue to help her grow her superannuation. Advice on how to better utilise their surplus cashflow. In addition to the above, your clients have also requested general information regarding their personal insurance options to protect their family in the event of death, disability, injury or illness. You will not recommend any specific investments, investment products or insurance products (aside from selecting one of Michael's existing super funds as his recommended fund). You will consider relevant generic product groups and product structures e.g. managed funds, insurance bonds, income protection etc. These recommendations can only include generic product structures and features. Your licensing conditions: You are a fully qualified and accredited financial adviser. You are an employee and representative of "AMP Practice" which is licensed by AMP Financial Planning. You receive a fixed salary. You have agreed on a flat fee for service to provide this advice to Michael and Sue. That fee is $3,750, including GST will be charged following the presentation of your Statement of Advice and should be factored into your cashflow projections & modelling. Your Financial Services and Credit Guide (FSCG) was provided to your clients at your first meeting. This enabled you to cover all legislative and compliance requirements. The timeframe for the clients' goals range from one year to their indicative life expectancies of age 81 (Michael) and age 85 (Sue). You do not need to make financial projections beyond this period.Client: Michael & Sue West Adviser Name: Financial Adviser Date Completed: 1 June 2024

Personal information

Personal information

Client 1

Client 2

Title Given names Surname Preferred name Gender Date of birth

Citizenship

Marital status Australian tax resident

Tax file number

Mr Michael West - Male 21/11/1974 (49 years)

Australian

Married Resident

Provided

Mrs Sue West - Female 24/12/1975 (48 years)

Australian

Married Resident

Provided

Page 1

Contact information

Fact Find - Private and Confidential

Contact details

Client 1

Client 2

Home address Address for correspondence Preferred contact number Email

123 Kangaroo Lane, Sydney, NSW 2000, Australia 123 Kangaroo Lane, Sydney, NSW 2000, Australia

0434 864 XXX m..4@email.com

0424 221 XXX s..5@email.com

12/4/2007 (17) Support to 21 1/12/2011 (12) Support to 21

Children / dependants

Shilo West Son Bede West Son

Additional information

Name

Relationship

Date of birth

Financially dependant?

(eg. special needs, education funding requirements, youth allowance or any other government benefit)

Page 2

Employment

Occupation

Employment status

Hours worked per week

Employer name

Years in current occupation

Any change planned? If yes, provide details below

Leave balances (in days)

Business structure Additional occupation (if applicable)

At what age do you intend to retire?

How much income do you think you need at retirement? (per annum)

If unsure of what income is required, what type of lifestyle would you like achieve in retirement?

What sources of income do you expect to rely on in retirement?

Additional information

Construction Manager Full Time 40 Build-It

16 No

35 Annual leave 5 Sick leave

Not applicable Not applicable

62 -

Brand Consultant Part Time 24 (3 days per week) MKH & Associates 5

No

21 Annual leave 8 Sick leave

Not applicable Not applicable

62

Fact Find - Private and Confidential

Employment

Client 1

Client 2

Retirement Planning

Client 1

Client 2

At this stage Michael and Sue expect to have similar expenses in retirement however they expect any debt would be cleared pre-retirement.

Superannuation and savings

Michael & Sue are both happy with their current working arrangements.

Sue has worked in a part time capacity since they had their first child and is unlikely to return to full-time hours in

the future.

While Michael's role is in construction, he himself is no longer required to do any manual labour, however he does spend approx. 25% of his time visiting construction sites. Sue's role is 100% office based.

Michael & Sue have started thinking more about retirement and have agreed that they would both like to retire well before turning 65.

They have indicated that age 62 would be their preferred retirement age, with this to be reviewed ongoing as they approach retirement.

Page 3

Income

Ordinary Wages / Client Salary Ordinary Wages / Client Salary Total income (per annum)

Expenses

Estimated Tax Payable (incl Medicare Levy) Estimated Tax Payable (incl Medicare Levy) Living Expenses Loan Repayments

Total expenses (per annum)

Other cashflow details

Able to save? Yes If 'Yes', how much? $23,030 per annum

Additional information

Michael Sue

Michael Sue Joint Joint

$140,000.00 $50,000.00 $190,000.00

$39,667.00 $7,467.00 $52,000.00 $67,836.00 $166,970.00

Fact Find - Private and Confidential

Income

Owner

Amount

Expense

Owner

Amount

Client 1

Use of savings over the last year

Any cashflow surplus is generally spent on additional discretionary expenses. Michael & Sue would like to take their family on an international holiday in 2025 and estimate this will cost $10,000 in total. They wish to provision cash savings to fund this trip.

Total annual income does not include their Employer Superannuation Guarantee payments. Household expenditure is estimated as a 50/50 split between Michael and Sue.

Page 4

Assets

Primary Residence Household Contents Cash Savings Motor Vehicle Motor Vehicle

Total

Additional information

Joint Joint Joint Michael Sue

$1,200,000.00 $70,000.00 $16,000.00 $40,000.00 $8,000.00 $1,334,000.00

Fact Find - Private and Confidential

Assets

Owner

Amount

Page 5

Liabilities

Total liabilities $625,000.00

Additional information

Fact Find - Private and Confidential

Liabilities	Owner	Repayments	Repayment Type	Interest rate	Deductible	Outstanding Balance
Primary Residence Mortgage	Joint	$5,653 Monthly	Principal & Interest	7.10%	No	$625,000.00

25-year loan term

Page 6

Superannuation fund details

Michael

Retirement Star Superannuation Supercharger Rocketeer Super Subtotal

Sue

Employer Super

Subtotal

Additional information

$83,000.00 $48,000.00 $59,000.00 $190,000.00

$41,000.00

$41,000.00

Fact Find - Private and Confidential

Assets - additional financial investments

Amount

Michael' Superannuation

Market values & fund details as of 01/06/2024

No beneficiaries nominated on any of Michael' superannuation funds

All three fund balances are 100% taxable (taxed) component.

All three funds are 100% preserved, no unrestricted non preserved amounts.

Michael' SG contributions are currently being directed to his Retirement Star Superannuation fund

Michael has no insurance inside (or outside) superannuation currently.

Sue's Superannuation

Sue has stated that she has approx. $41,000 in superannuation, invested in 70% growth.

Sue is happy with her current fund as management fees are paid for by her employer. She therefore does not want any advice specific to current super fund appropriateness but is happy for her superan- nuation to be used in projections and modelling.

Sue has provided evidence that she has no insurance inside (or outside) superannuation currently.

Other notes:

Both clients cancelled their Life, TPD and income protection insurance inside superannuation in 2018 as they did not want their super balances to be eroded by expensive insurance that they felt they were unlikely to claim on (particularly as Sue was not working at the time).

Michael & Sue have conducted a lost superannuation search in the last week, no other funds were found.

Michael & Sue haven't made any personal contributions in the past, they have relied on SG contributions and

investment return to grow their retirement savings to date.

Page 7

Fact Find - Private and Confidential

Retirement Star Superannuation

Current Investment (Defensive / Growth)

Investment Return - 1yr

Dynamic (30 / 70)

8.8%

Supercharger

Moderate (40 / 60)

6.1%

Rocketeer Super

Maverick (0 / 100)

13.7%

Rocketeer Super

4

Stable Saver (80 / 20)

0.55%

Balanced Builder (40 / 60)

1.47%

Growth Seeker (20 / 80)

1.85%

Maverick (0 / 100)

2.15%

$10,000

Up to $4m Up to $4m to $20k p.m.

$3.60 $3.60 $19.50

Yes

Current Balance

Investment Fee

$83,000.00

1.30%

$48,000.00

.60%

$59,000.00

2.15%

- 2yr

Existing Superannuation Insurance:

9.1%

- - -

9.4%

- - -

8.4%

- - -

Available investment options within Michael' Superannuation Funds:

Available Options:

Option 1 (Defensive / Growth) Investment Fee

Option 2 (Defensive / Growth) Investment Fee

Option 3 (Defensive / Growth) Investment Fee

Option 4 (Defensive / Growth) Investment Fee

Minimum account Balance

Life Cover TPD Cover Income Cover

Premiums ($ p.a):

Life (per $10,000) TPD (per $10,000) I.P. (per $100/pm)

Binding Nomination available

Retirement Star Superannuation

4

Conservative (95 / 5)

0.45%

Balanced (70 / 30)

0.65%

Dynamic (30 / 70)

1.30%

Progressive (15 / 85) 1.90%

$1,000

Up to $4m Up to $4m to $20k p.m.

$3.80 $3.00 $24.50

Yes

Supercharger

4

Moderate (40 / 60)

0.60%

Growth (30 / 70) 1.30%

Venture (15 / 85)

1.70%

High Growth (0 / 100)

1.95%

$5,000

Up to $3m Up to $3m to $22k p.m.

$3.45 $4.95 $23.45

Yes

Michael's current Superannuation Funds position:

Note - Sue has stated that she has $41,000 in her current super fund and is happy for that information to be used in any strategic financial advice, projections or financial modelling.

Page 8

Personal Insurance

Nil ---- Nil ----

Additional information

Fact Find - Private and Confidential

Health Insurer/Product

Type Owner Insured Premium

Both clients cancelled their Life, TPD and income protection insurance inside superannuation in 2018 as they did not want their super balances to be eroded by expensive insurance that they felt would be unlikely to claim on.

They do not own any personal insurance outside of superannuation. They do not want any general or private health insurance advice.

Page 9

Health insurance

Healthy Choice Platinum

Healthy Choice Platinum

Additional information

Family Family

Michael Michael $1,231pa Sue Sue $861pa

Fact Find - Private and Confidential

Health Insurer/Product

Type Owner Insured Premium

Health insurance premiums are accounted for as general living expenses in cashflow summaries. Their private health insurance has appropriate hospital cover with excess of $500.

Page 10

Health details

Health status

Have you smoked tobacco or any other substance at any time during the last 12 months?

Do you drink alcohol?

Height (cm) Weight (kg)

Good No

Yes Weekly avg: 5

181 86

Excellent No

Yes Weekly avg: 2

157 65

Fact Find - Private and Confidential

Client 1

Client 2

Do you have current health/mental issues or concerns? If yes, provide detail

Yes Michael is generally in good health but sees a chiropractor once a month to stay on top of neck soreness. Michael struggled with migraines stemming from his neck soreness in the past but has been able to maintain good health and minimal symptoms for 3+ years due to regular visits to the chiropractor.

No Sue considers herself to be in excellent health. She rarely uses her private health insurance for anything more than routine dental check-ups.

Have you suffered from any serious medical condition or undergone any medical No procedure / operation in the last 10 years?

No

Family history (e.g. health issues and longevity of parents)

Michael's father suffered a fatal heart attack in 2020

No

Page 11

Professional advisers

Solicitor Nil - Accountant ABC Accountants 02 9468 XXXX

Fact Find - Private and Confidential

Description

Name/Company

Contact details

Page 12

Estate planning

Existing Will?

Date of Will

Date last reviewed

Name of appointed guardian

Have circumstances changed since last review?

Testamentary trust? If 'yes', who are the beneficiaries?

Powers of attorney? If 'yes', what types/who?

Funeral plan?

Any previous relationships that may impact on estate planning arrangements?

Any bequests?

Any potential beneficiaries in a vulnerable situation? (e.g. financial trouble, relationship problems, disabilities)

Additional information

No - - -

- No

No

No None known -

None known

No - - -

- No

No

No None known -

None known

Fact Find - Private and Confidential

Estate planning

Client 1

Client 2

Any other special estate planning issues? (e.g. likelihood of receiving an inheritance, de-facto relationship, children from previous relationships)

None known

None known

Michael and Sue have no formal plans in place in the event someone in their family were to pass away, lose capacity or require guardianship.

Page 13

Scope of our advice

Why has the client sought advice?

Document what the client wanted to achieved.

Agreed scope of advice

Once you have completed further investigations and discussions with your client, record the agreed scope of advice.

Fact Find - Private and Confidential

Why has the client sought advice?

We're living comfortably, but we're starting to think more about the future. We want to make sure we are prepared financially for retirement.

Our home loan balance is our main concern when considering retirement, as we would ideally like to retire with as little debt as possible. The sooner we can pay this off the better.

We have some cash in bank but don't have a strategy to grow this and usually end up spending most of our surplus cashflow on discretionary expenses as a result. Sue's brother seems to be doing well investing in Bitcoin, is this something we should consider?

Michael currently has numerous superannuation funds that he has accumulated via previous employer arrangements. We would like to understand which of these funds Michael should use going forward.

Michael's father passed away from a heart attack last year which has caused us to start thinking more about whether we should have personal insurance in place. We don't want to commit to anything just yet, but we would like to better understand the options we have available to us.

Agreed scope of advice

Debt Management - Advice to pay off their home loan faster.

Cashflow, Savings and Investment - Advice on how to better utilise their surplus cashflow.

Superannuation

- Consolidate Michael' superannuation into one of his existing funds.

- Grow your superannuation balances.

Protection

- Limited to general information relating to your insurance options.

Page 14

Advice limitations

Clearly outline the aspects that the client has taken out of scope. Examples: (i) you may identify an issue with the client's cashflow position but the client declines advice in those advice areas, (ii) the client may wish to retain/purchase/sell a component within their investment portfolio without your advice.

Fact Find - Private and Confidential

Scope limitations

It is important you know we have not provided advice on the following: Retirement Planning Advice - Michael and Sue want to receive advice relating to growing their superannuation balances, but do not want to receive detailed retirement planning advice at this time. They have confirmed that they would like to postpone receiving specific retirement advice until approximately 10 years prior to Michael' retirement age. As part of our advice now, they wish to receive retirement projections based on their situation today only. - I explained that without consideration of their specific retirement objectives, our advice may not be appropriate. Their financial position may not be on the trajectory required to provide them with their preferred retirement living arrangement and may be unable to fund their future objectives. I stressed that their family may experience financial stress and/or hardship as they may be unable to afford their cost of living. Superannuation product (Sue) - Sue has stated that she does not want to receive advice relating to her superannuation product as she manages this separately via her employer and is comfortable with the current structure. Sue has asked to limit her superannuation advice to growing her superannuation balance and has provided her super balance & risk profile for projection purposes only. - I have explained that Sue's superannuation may not be invested in line with her attitude to risk and/or growth expectations, and that her superannuation savings may therefore not be on a trajectory to support or afford her future objectives. By not addressing this advice area Sue may be neglecting opportunities to further grow her wealth. Risk needs analysis & Insurance - Michael & Sue are interested in learning more about the insurances that may be appropriate to them for them to have to ensure their family is protected in the event of death, disability, injury or illness but do want to assess their specific insurance needs at this time, nor do they want any product advice relating to insurance. - I explained that without an analysis of their insurance needs they will not have an accurate understanding of their income and capital requirements and/or shortfalls in the event they pass away, become totally and permanently, suffer a critical illness disabled or are unable to work due to injury or sickness. I noted that they may not have appropriate protection in place to support them if a claimable event were to occur. Social Security - Michael and Sue do not want to receive advice relating to their potential social security entitlements. As they are currently cashflow positive, receiving additional benefits is not of immediate interest to them and they would prefer to address their more pressing priorities. - I spoke to Michael and Sue about the fact that they may not be receiving Centrelink benefits that they are entitled to receive. By not addressing this advice area, they may be neglecting opportunities improve their financial position and/or quality of life. Family holiday in 2025 - Michael & Sue have advised of their intentions to go on an international family holiday in 2025. They do not want to receive any advice on this area of their situation as they will be dealing directly with a travel agent to arrange this. They would like to provision $10,000 of cash savings to use toward this trip. - I spoke to Michael & Sue about the risks of not considering all their lifestyle objectives in our advice, and that our recommendations may ultimately not account for these plans as best as possible. They understand these risks and we have agreed to consider the expense in cashflow projections and modelling only.

Page 15

Goals and objectives

Record the specific goals and objectives you and the client have agreed will be addressed..

Fact Find - Private and Confidential

Owner Description Timeframe

Priority/ Status

Michael & Sue

Michael & Sue want advice on how to reduce their home loan. They do not want any product specific advice but would like a better

strategy to implement directly with their bank that would see their debt paid off quicker.

Now

High

Michael & Sue

Michael & Sue want advice on how to grow their retirement savings

more effectively.

For Michael, this includes determining which of his existing superannuation funds is most appropriate to invest his retirement savings going forward. He also wants these funds are invested & growing in line with his risk/return appetite.

Sue has confirmed that she does not want advice relating to her superannuation product or underlying investment strategy but would consider strategic advice to boost her superannuation balance.

Now

High

Michael & Sue

Michael & Sue want advice on how to utilise their surplus cash more effectively.

They want to explore an investment strategy that would reduce the likelihood of them spending their surplus unnecessarily.

They want their funds to be invested & growing in line with their risk appetite and would prefer that some of the funds remain accessible if needed.

Now

High

Michael & Sue

Michael & Sue want general information regarding their personal insurance options in the event of death, total and permanent disability, critical illness or inability to work due to injury or illness.

Now

High

Planning priorities and preferences*

We don't want to make things too complex. Our main goal is to address our immediate issues and get the fundamentals right.

We understand that we'll need to make some adjustments, but we'd rather not have to drastically change our lifestyle to move forward.

We're open to taking on riskier investments, but we don't want to lose access to all of our savings or cashflow. We'd like to keep some funds accessible for emergencies.

We are both cautious about paying for insurance we don't need and therefore just want to better understand our options in this area to make an informed decision in the future.

Page 16

Personal insurance needs analysis

Fact Find - Private and Confidential

Michael & Sue declined completing an insurance needs analysis as they don't want any specific products or sums of insurance recommended to them at this time. They have specifically only requested general information relating to their insurance needs in the event of death, disability, critical illness or inability to work due to injury or illness.

Page 17

Investment experience and attitude to risk

Outline your discussions with your client about their investment knowledge, education and experience, their motivation for investing and their attitude to risk.

Fact Find - Private and Confidential

Determining your risk tolerance

If you choose to use this questionnaire, answer the following questions about investing to help us determine a suitable investment strategy for your goals.

Question 1: Which of the following best describes your own experience level as an investor?

Client 1

Client 2

Joint

Score

I have had virtually no experience in investing money apart from using bank accounts

I have had limited experience in investing

I have had a reasonable level of investment experience

I would consider myself an experienced investor

Question 2: Which of the following best describes your level of knowledge and understanding of financial markets and investing?

Client 1

Client 2

Joint

Score

Low

Limited

Reasonable

Solid

Question 3: Thinking about the risk you have taken with your past investment choices, how would you describe the level of risk?

Client 1

Client 2

Joint

Score

High

Moderate

Low

Not applicable as my past experience is limited

Question 4: In the context of investing, what best describes your attitude to risk?

Client 1

Client 2

Joint

Score

It is something to be avoided

It is a source of uncertainty and needs to be limited

It can create the opportunity for improved returns

It is something to be embraced

1

2 3 4

1 2 3 4

4 3 2 1

1 2 3 4

Page 18

Fact Find - Private and Confidential

Question 5: If asked to make your own investment decisions how would you feel?

Very comfortable

Client 1

Client 2

Joint

Score

Not confident at all

Somewhat hesitant

Reasonably confident

Question 6: If you held a sizable investment that regularly went up and down in value, which would you be likely to do?

Client 1

Client 2

Joint

Score

Watch its progress daily or weekly as I'm likely to be anxious about investment performance

Watch its progress monthly out of concern over investment performance

Watch its progress regularly, not out of concern, but just for general interest

Only check its progress once or twice a year

Question 7: How would you feel if a large percentage of your investment portfolio was invested in the share market?

Client 1

Client 2

Joint

Score

Very comfortable

Reasonably comfortable

A little hesitant but willing to consider it

Not comfortable

Question 8: In order to earn a return above the level of bank interest rates you may need to hold investments that go up and down in value (i.e. have volatility). How important is it to you to protect your investment and minimise the prospect of any fall in the value?

Client 1

Client 2

Joint

Score

Very important. Protecting my existing investment is my main objective.

Important, but I'm comfortable for at least a small part of my portfolio to have volatility in order to improve returns over the longer term.

Somewhat important but I'm prepared to take on a reasonable amount of volatility in order to increase my chance of higher returns over the longer term.

Not particularly important as I'm comfortable that having exposure to volatility increases the likelihoods for returns to be increased over the longer term.

Question 9: If you owned a large amount of shares and the stock market fell quickly by 20%, what do you believe your natural reaction would be?

Client 1

Client 2

Joint

Score

To sell all the shares as soon as possible to avoid any further falls

To sell the some of the shares to reduce exposure to future falls

To hold the shares and wait for a recovery

1 2 3 4

1 2 3 4

4 3 2 1

1 2

3

4

1 2 3

Page 19

Fact Find - Private and Confidential

To look for ways to buy more shares

Question 10: Investments that go up and down in value in the short-term (ie have volatility) are more likely to produce higher returns than investments that remain steady. Are you prepared to experience volatility in your investments in order to increase the chance of higher returns?

Client 1

Client 2

Joint

Score

No, not at all

Yes, but only for some of my investment portfolio

Yes, for a significant part of my investment portfolio

Yes, definitely

Assessment

Michael

Sue

Joint

Please complete the assessment and continue to 3.3 Documenting your discussions.

Total score

Identified investment strategy

Agreed investment strategy

Score

Investment profile

10 - 17

30% growth profile

Definite need for a very secure income. Little fluctuations in capital value. Will not accept much downside risk.

18 - 26

50% growth assets

Requires a stable income. Can withdraw capital to supplement income if necessary. Expect small fluctuations in income to gain modest capital growth. Requires minimisation of downside risk.

27 - 32

70% growth assets

Desires a reasonably stable income stream, but also desires a steady growth in capital value. Prepared for fluctuations to achieve reasonable capital growth over the medium term. Sufficient capital available to draw down to supplement income needs.

33 - 36

85% growth assets

Little or no need for an ongoing current income from investments. Investment focus is on achieving capital growth with no need to access capital in the medium term. Prepared to accept fluctuations in capital value to achieve longer term wealth accumulation.

37 - 40

100% growth assets

No ongoing income needed from investments. Investment focus is on high levels of capital growth with no need to access capital for the long term.

Prepared to accept wide fluctuations in capital value and may be prepared to invest additional sums during downsize periods.

4

1 2 3 4

85% Growth 70% Growth 70% Growth 85% Growth 70% Growth 70% Growth

33 28 28

Page 20

Cash Australian fixed interest International fixed interest Australian property International property Australian shares International shares 5 Other - Alternatives Return information 1 Projection return per annum 2

Extreme return range

Normal return range

Probability of a negative return (over one year)

Minimum suggested investment timeframe

Investment objective over investment timeframe (return above CPI)

Probability of meeting investment objective (of CPI + investment objective)

Investor characteristics 4

Suitable for short term goals Suitable for long term goals

Willing to incur loss of capital value

100% 0% 0% 0% 0% 0% 0% 0%

3.00%

1.50% to 4.50%

2.30% to 3.80%

0.00% 1 year

0.50%

84.1% 3

Yes No

Not willing

22% 26% 22% 0% 2% 12% 13%

11% 5% 4% 0% 21% 14% 7% 0% 18% 11% 4% 0%

0% 2% 2% 3%

3% 3% 4% 4% 20% 29% 33% 39% 24% 33% 43% 51%

Fact Find - Private and Confidential

Risk profile	0%	30%	50%	70%	85%	100%
Portfolio make up

3% 3% 3% 3% 3%

4.92%

-8.3% to 18.2%

-1.7% to 11.5%

13.3% 3 years

I0.75%

76.1%

Yes No

Less willing

5.70%

-14.3% to 25.7%

-4.3% to 15.70%

19.6% 5 years

1.50%

75.5%

Yes No

Willing

6.45%

-20.5% to 33.4%

-7.0% to 19.9%

23.6% 7 years

2.50%

72.5%

No Yes

Willing

6.92%

-25.2% to 39.0%

-9.1% to 23.0%

25.9% 8.5 years

3.25%

69.3%

No Yes

Willing

7.45%

-30.0% to 44.9%

-11.3% to 26.2%

27.5% 10 years

3.75%

71.0%

No Yes

Willing

Portfolio diversification

Very limited, invested in defensive assets

Some diversificati on

Well- diversified

Well- diversified

Well- diversified

Well- diversified

Capital security vs Capital growth

Security Security Balanced Balanced Growth Growth

Fact Find - Private and Confidential

1 This information was obtained from AMP Investments and considered to be reliable, however we do not guarantee it is accurate or complete. The direct property and Cash rate were provided by AMP Investments. The information in this publication is current as at April 2024 and may change over time. Past performance is not a reliable indicator of future performance.

2 The projected returns shown in the table above assumes the investment is taxed as a pension and includes franking credits. The returns are shown prior to any costs.

3 The probability of meeting the objective in the 0% growth profile assumes investment in a very liquid asset such as Call Deposit 11 AM account and assumes no fees.

4 This table contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider you financial situation and needs before making any decisions based on this information.

5 International shares includes an allocation to Global Listed Infrastructure

Return over time graphs

0% growth profile

70% growth profile

30% growth profile

85% growth profile

50% growth profile

100% growth profile

Additional information

Fact Find - Private and Confidential

Michael and Sue were interested in the "extreme return range" and the "normal return range" for their respective profiles as they had never seen the variance to expected return explained in such a detailed way. When I asked them what they would do if they experienced the negative extreme range based on Michael's current super (for example), each of them replied they would be slightly concerned but "would wait it out because we know that if you pull out of an investment at the wrong time and the market picks back up it would be terrible".

I walked Michael and Sue through their risk profile outcomes and how it related to the growth profiles and return over time graphs. We explored other asset weightings and their likely consequences, however Michael and Sue both feel their risk profiles summed up their individual preferences best as well as their joint profile, which they determined together as a couple.

Michael and Sue feel that while their goals are important, taking on more risk to achieve them (e.g. borrowing to invest) would cause greater anxiety in the short term. Both Michael and Sue feel comfortable with their assessed risk profiles and asset weightings and do not wish to deviate from them.

We discussed the various characteristics of investing towards lower and higher growth. We also walked through ASIC's Moneysmart website and both Michael and Sue advised they were already familiar and understood most of the concepts explained including the risk return trade off.

Utilising Moneysmart's webpage we walked through each of the investment topics. Both Michael and Sue advised they were already familiar and understood most of the concepts explained. We then walked through the "Investing between the flags" guide from Moneysmart site to delve deeper into these topics.

Fee and FSCG details

Fee details

Advice fee (preparation of SOA) $3,750 (including GST) Payment method Payable on presentation of advice document

Communication preferences

Fact Find - Private and Confidential

Details

Communications

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Preferred means of communication of advice documents, PDS, FSCG etc

Email If email, confirm preferred email address m..4@email.com

Privacy and FSCG details

Privacy discussed? Yes FSG/FSCG version number 10 Date FSG/FSCG provided 01/06/2024

FSG/FSCG details

Details

Appendix : Economic Assumptions

These assumptions are also used to advice

Projection start date Indexation rate (CPI)

AWOTE index rate Income received Cost of living Taxation

Superannuation Centrelink/DVA

calculate the future projections and any cashflow analysis that may be included with this

01 July 2024

2.5% per annum based on a long-term inflation rate expectation. It is applied to all expenses annually.

3.0% per annum. It is applied to annual "salary/income" when not otherwise specified.

Investment earnings are assumed to be received annually.

Indexed by CPI and recorded in the year of expected outlay.

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.

Fact Find - Private and Confidential

Fees	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 fee-related tax deductions or GST credits that may be available from the products.
Investment profile	0%	30%	50%	70%	85%	100%
Investment objective over investment timeframe (return above CPI)	0.50%	0.75%	1.50%	2.50%	3.25%	3.75%
Probability of meeting investment objective(of CPI + investment objective)	84.10% 3	76.10%	75.50%	72.50%	69.30%	71.00%

"Based on the above details what is the (1) Reason for this advice (2) SWOT Analysis (3) Risk Profile (4) Summary of advice