he Select v Paragraph Styles Editing Voice Sensitivity Editor Case Background Family: James (40), Sarah (36), James is a high school teacher, earning $95,000 per annum (before tax income and excluding superannuateon). Sarah works as an accountant for a large accounting firm, earning $95,000 per annum (before tax income and excluding superannuateon). They are currently renting, paying a weekly rent of $650. They are planning to purchase a house in four years which will be their main residence. The property they are looking at is worth about $750,000 in current dollars, and they wish to pay at least a 20% deposit as they don't want to borrow too much. However, they are concerned about how much they could afford in four years given increased property prices. They currently have $100,000 in their bank account (which is a joint account). Sarah also has 2,000 QANTAS shares that she bought on 28th Feb 2020 for $5.50. James has a credit card with a $10,000 limit that he keeps for emergency use only and there is no outstanding balance. The family has 2 cars at present, one is a Ford Focus 2009 with an estimated value of $6,000, and another is a 2018 Mazda 3 with a market value of $20,000. Both cars were bought with cash. James has accumulated $90,000 in his employer-sponsored superannuateon fund, and Sarah has $50,000. Excluding their rent, the annual expenses of the family are about $54,000 per year (including private health insurance). The clients seek your advice on the following matters: 1. How much do they need to save each month to save a 20% deposit, and can they afford to make a bigger deposit? 2. What will their cash flow statement look like once they purchase a house? 3. Does James need to purchase life insurance to protect his family in the case of premature death? If so, how much and what type? They wish to allow for: ") Funeral avnances. Cin non. nglish (United States) { Accessibility. Good to go [ Focus E Text Predictions: On 5:08 ENGcash. James has accumulated $90,000 in his employer-sponsored superannuateon fund, and Sarah has $50,000. Excluding their rent, the annual expenses of the family are about $54,000 per year (including private health insurance) The clients seek your advice on the following matters: 1. How much do they need to save each month to save a 20% deposit, and can they afford to make a bigger deposit? 2. What will their cash flow statement look like once they purchase a house? 3. Does James need to purchase life insurance to protect his family in the case of premature death? If so, how much and what type? They wish to allow for: a) Funeral expenses: $10,000; b) Emergency funds: $18,000; c) Enough money to clear their home loan; d) One year of current expenses. Sarah would continue working until age 67 in the case of the premature death of James. Please find the detailed guidance and rubrics on the following pages. h (United States) Text Predictions: On 2 Accessibility. Good to go Focus Q Search N EN O W CO ENGab XX Av v E Select Font Paragraph Styles Editing Voice Sensitivity Editor needed to complete the purchase 6 Initial Investigate how much the family can borrow and determine investigation an appropriate residential home loan rate based on current interest rates Discuss between the following loan features: Fixed vs variable rates 7 Initial . Discuss options for saving up for the home deposit via direct investigation and indirect investments; summarise the advantages and disadvantages of each option Calculate the expected amount that would be accumulated based on the surplus and current savings. Explain why the investment may be appropriate, assuming the couple have a balanced risk profile Clearly state all assumptions used in the calculations 8 Initial Calculate how much life insurance James needs to purchase investigation to protect his family in the case of his premature death . What would be an expected premium if he needs to purchase the insurance (outside of superannuateon) Clearly state all the assumptions used in the calculation 9 Strategy . Based on your research recommend the solutions that you rds English (United States) Text Predictions: On 1 Accessibility: Good to go Focus Q Search EN W ENG