Discuss and explain the different investment strategies

Reference no: EM131478983 , Length: word count:3200

Principles of Financial Literacy Individual Assignment

Case study - Couples information

	Couple 1	Couple 2	Couple 3
Profile	Wealth Accumulators	Pre- Retirees	Retiree
Names	Roberto & Lisa	Jeff & Juan	Bill & Shirley
Ages	Roberto:29, Lisa: 28	Jeff:55, Juan: 53	Bill 70, Shirley: 67
Marital Status	Recently married	Married (2 children ages 14 & 13)	Married (2 children and 2 grandchildren ages 12&9)
Dependents	0	2	0
Occupation	Roberto: Engineer Lisa: Teacher	Jeff: Lawyer Juan: HR Manager	Bill: Retired Shirley: Retired
Household Income (after tax)	$155,000	$285,000	$90,000 (superannuation Pension and investment income)
Living Expenses	$135,000	$155,000 (including mortgage)	$75,000
Assets (Total assets owned by the couple)	Home : Renting Superannuation $195,000 (2 accounts for Roberto and 3 for Lisa) Cash at call: $15,500 Term deposit: $40,000 (matures 6 April 2017)*. Car: $115,000	Home: $2.8Million Superannuation $670,000 Cash at call: $35,000 Term deposit: $65,000 (matures 5 April 2016) Share & managed funds $225,000 Cars: $110,000	Home $2.8 Million Superannuation Pension $1,550,000 Cash at call: $75,000 Term deposit: $225,000 (matures 10 April 2017) Shares & managed funds $350,000 Car: $125,000
Liabilities	Credit cards $28,000 Personal loan:$32,000 Car Loan:75,000	Home Loan $ 320,000	Nil
Risk profile	High Growth	Growth	Balanced
Goals & objectives	Paying off debt, saving a deposit to buy a house and going on a skiing holiday to Japan later this year	Paying off a home loan, saving , paying for private school fees and saving for retirement	Comfortable retirement, going on a holiday to Africa in the next 18 months and starting a sinking fund for their grandchildren

Assignment Questions -

IN YOUR OWN WORDS - You need to prepare a report to answer the questions below related to the 3 couples above. Your report needs to explain and discuss issues asked in the questions below and related to the 3 couples, specific circumstances.

1. Advise the 3 couples on the need for budgeting and financial planning to help meet their goals and objectives. In your answer also address the benefits of appropriate budgeting and planning and the risks of not budgeting and or planning. Be specific, relate to each of the couple personal circumstances

2. Discuss and explain the different investment strategies below highlighting their key advantages and disadvantages. Comment specifically on the suitability of each of these investments strategies to each of the clients above. Clearly explain and justify your answer.

a. investment via Mutual trust/Managed funds

b. Investment in Government and Corporate bonds

c. Use of Gearing (borrowing to invest)

d. Investment in Gold Bullion

3. Explain the concept of risk management as an important financial planning consideration and how insurance can be used in managing key personal risks. In you answer List 1personal and 1 general insurance recommendations to each of the 3 couples and explain why they should be (you need to list and explain 2 recommendations for each of the couples, 6 in total).

4. Explain why it's important to consider superannuation as part of saving for retirement and retirement palming. List and explain 2 possible superannuation/pension recommendations or strategy and explain why they would be considered by each of the 3 couples (you need to list and explain 2 recommendations for each of the couples, 6 in total).

5. Explain why it's important to consider having a valid will and an appropriate power of attorney as part of the couples' estate planning highlighting the benefits and risks as applicable. In your answer relate specifically to each of the 3 couples individual circumstances.

Report Presentation - Your report needs to be professionally presented and reader friendly.

Assignment Files -

https://www.dropbox.com/s/6z9vhonc2j6biqr/Assignment%20Files.rar?dl=0

Reference no: EM131478983

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Reviews

len1478983

4/29/2017 8:35:21 AM

Need Accurate and perfect solution for this with 25 recent references and relevant figures and diagrams with excellent analysis and total number of words 3200. The assignment/report must be typed (font 11, Arial or Times New Roman). There is no specific template or format for the report; however, you need to ensure your report is technically accurate, reader friendly and professionally presented in line with the industry best practice. Tips: your report should contain a cover letter, table of contents, headings, etc. Also, where appropriate, tables, graphs, flowcharts, etc to help illustrate your points clearly. Marks will be awarded for the presentation of your work. Attempt ALL questions. Show workings and calculations where applicable. Assumptions can be made, however, they need to be reasonable and logical and cannot conflict with the facts in the question/s and must be clearly stated. Always explain and justify your answer/s /recommendation/s. Clearly state your source reference/s.

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