James is a 45-year-old civil engineer who has been working for Taylor Construction Group since 2009....

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James is a 45-year-old civil engineer who has been working for Taylor Construction Group since 2009. His wife, Fiona, is a 41-year-old business analyst working for ANZ bank since 2010. They have been married for 15 years, have two children, Mary aged 11 and Jacob aged 13. Both James and Fiona are in good health, do not smoke, however James drinks alcohol almost every day that becomes a daily habit now a days. They would like to have another child, but Fiona previously had serious complications and considered a high pregnancy risk (which needs consideration when selecting health insurance coverage for the family). James's annual taxable income is $135,000 excluding 12.5% superannuation and Fiona's income is $95,000 excluding 10% superannuation. Total household expense is approximately $125,000 including home loan repayment. They own two cars and still $12,000 loan to pay at a rate of 4.5%. Their home is valued at $1.5M with a mortgage of $750,000 (they pay a variable 5.5% interest rate). Both children attend public schools. Until today, they are able to comfortably afford living expenses, school fees and the mortgage and have accumulated $65,000 in savings. James has superannuation balance of $310,000 with Cbus Industry Super (combined Life & TPD covers of $500,000 with income protection) and Fiona has $190,000 in the Australian Super fund (combined Life & TPD covers of $350,000 with no income protection). Fund fees and charges including investment return information is not available at this stage which can be obtained from the respective fund's product disclosure statement. They have no other debts such as credit card, and have no private health insurance. They go on holidays almost every after two years and spend around $20,000 per holidays. Williams family also wanted to get advice on few tax related issues. You are not an accountant or authorise to provide taxation advice. You have a friend named Paul who does taxation for individuals where you receive 15% commission as referral fee. As you are aware of Paul's expertise, mentioned to the Williams family that Paul would look after their taxation matter and you would pass all the required details to him so that it saves everybody's time to collect similar data again. Paul's office is nearby just after the next road. You have set up appointment with Paul for the Williams family in the next week. Goals & Objectives: Following discussions with James and Fiona, find their agreed goals and objectives as follows: 1. Ensure a net income of $125,000 per annum is available to maintain living expenses. 2. Maintain a cash reserve of $30,000. 3. They would like to know if investing somewhere else would be better than paying off the mortgage first. 4. They are interested to know benefits of inside/outside super and appreciate any advice applicable for them such as salary sacrifice. 5. Ensure their income is replaced in the event of an accident or illness while employed, and both James and Fiona intend to retire at age 65. 6. Ensure they have adequate Life, Total Permanent Disability (TPD), Trauma and Income Protection insurance in place. 7. Explore any other personal insurance covers that they may require such as private health insurance. 8. It is James and Fiona's desire that their children have the opportunity to go to university after completing their high school. They estimate that schooling will last from age 13 to 25. To provide for this, they estimate that $250,000 should be set aside for both children. 9. Fiona's mother, Sara is living with the family. She is 66 and receives a lifetime annuity earnings of around $16,000 per year that covers her incidental expenses. James and Fiona meet her other expenses, which amount to $550 per month. You will provide scaled advice to James and Fiona considering the issues below: > You need to ensure that you highlight the benefits and the risk of the scaled advice relevant to the client's personal circumstances. Analyse and address James and Fiona's goals, objectives, needs, and concerns and whether they can and if so then how to achieve their objectives. (You are strongly advised to provide them with options and alternatives where necessary and appropriate). For the personal insurance, you are required to provide a clear need analysis and make appropriate recommendations on the amount and type of covers required. You also need to provide insurance product recommendations and supply quotes of premiums. Insurance advice must consider the issue of inside/outside of superannuation. You will also explore general and health insurances. ▸ Projections should be made up to James & Fiona's life expectancy + 5 years. James is a 45-year-old civil engineer who has been working for Taylor Construction Group since 2009. His wife, Fiona, is a 41-year-old business analyst working for ANZ bank since 2010. They have been married for 15 years, have two children, Mary aged 11 and Jacob aged 13. Both James and Fiona are in good health, do not smoke, however James drinks alcohol almost every day that becomes a daily habit now a days. They would like to have another child, but Fiona previously had serious complications and considered a high pregnancy risk (which needs consideration when selecting health insurance coverage for the family). James's annual taxable income is $135,000 excluding 12.5% superannuation and Fiona's income is $95,000 excluding 10% superannuation. Total household expense is approximately $125,000 including home loan repayment. They own two cars and still $12,000 loan to pay at a rate of 4.5%. Their home is valued at $1.5M with a mortgage of $750,000 (they pay a variable 5.5% interest rate). Both children attend public schools. Until today, they are able to comfortably afford living expenses, school fees and the mortgage and have accumulated $65,000 in savings. James has superannuation balance of $310,000 with Cbus Industry Super (combined Life & TPD covers of $500,000 with income protection) and Fiona has $190,000 in the Australian Super fund (combined Life & TPD covers of $350,000 with no income protection). Fund fees and charges including investment return information is not available at this stage which can be obtained from the respective fund's product disclosure statement. They have no other debts such as credit card, and have no private health insurance. They go on holidays almost every after two years and spend around $20,000 per holidays. Williams family also wanted to get advice on few tax related issues. You are not an accountant or authorise to provide taxation advice. You have a friend named Paul who does taxation for individuals where you receive 15% commission as referral fee. As you are aware of Paul's expertise, mentioned to the Williams family that Paul would look after their taxation matter and you would pass all the required details to him so that it saves everybody's time to collect similar data again. Paul's office is nearby just after the next road. You have set up appointment with Paul for the Williams family in the next week. Goals & Objectives: Following discussions with James and Fiona, find their agreed goals and objectives as follows: 1. Ensure a net income of $125,000 per annum is available to maintain living expenses. 2. Maintain a cash reserve of $30,000. 3. They would like to know if investing somewhere else would be better than paying off the mortgage first. 4. They are interested to know benefits of inside/outside super and appreciate any advice applicable for them such as salary sacrifice. 5. Ensure their income is replaced in the event of an accident or illness while employed, and both James and Fiona intend to retire at age 65. 6. Ensure they have adequate Life, Total Permanent Disability (TPD), Trauma and Income Protection insurance in place. 7. Explore any other personal insurance covers that they may require such as private health insurance. 8. It is James and Fiona's desire that their children have the opportunity to go to university after completing their high school. They estimate that schooling will last from age 13 to 25. To provide for this, they estimate that $250,000 should be set aside for both children. 9. Fiona's mother, Sara is living with the family. She is 66 and receives a lifetime annuity earnings of around $16,000 per year that covers her incidental expenses. James and Fiona meet her other expenses, which amount to $550 per month. You will provide scaled advice to James and Fiona considering the issues below: > You need to ensure that you highlight the benefits and the risk of the scaled advice relevant to the client's personal circumstances. Analyse and address James and Fiona's goals, objectives, needs, and concerns and whether they can and if so then how to achieve their objectives. (You are strongly advised to provide them with options and alternatives where necessary and appropriate). For the personal insurance, you are required to provide a clear need analysis and make appropriate recommendations on the amount and type of covers required. You also need to provide insurance product recommendations and supply quotes of premiums. Insurance advice must consider the issue of inside/outside of superannuation. You will also explore general and health insurances. ▸ Projections should be made up to James & Fiona's life expectancy + 5 years.

Answer rating: 100% (QA)

To provide scaled advice to James and Fiona lets address each of their goals and objectives 1 Maintain a Net Income of 125000 Annually To achieve this they should consider optimizing their taxation th... View the full answer