Financial Planning (Insurance) Case Study
Diploma of Financial Services (FP) Case Study It is November, 2010. You are an authorised representative of a full-service licensed dealer group, Azza Financial Services Pty Ltd. Allison and Simon Callahan have come in to see you to ask for your assistance to plan out their next five years and then help them settle into retirement.
Allison (aged 54) and Simon (aged 52) have been married for 29 years and live at Lot 3 Wattle Road, Hurstbridge, Vic. Their only child, a daughter, Megan, is independent and has two children.
Allison has recently been promoted by her employer, Best Marketing, and now earns $135,000 p.a. working full time. She has commenced salary sacrificing 30% of this amount into superannuation, and her employer contributes Superannuation Guarantee Contributions of 9% of her remaining cash salary. The fund is a balanced growth retail superannuation fund, MM Superannuation. Her current balance is $160,000 and earns on average 7% p.a. after fees and taxes. She also has $100,000 in term life and TPD insurance cover within her superannuation fund. She drives a 4-year old Land Cruiser that is fully paid for. It has low kilometres and she expects to keep it until she retires. She will then need $30,000 to purchase a new car on top of the trade in she expects to receive from the Land Cruiser.
Simon works for Newbold’s Pty Ltd, a company which makes custom furniture. He earns around $45,000 p.a. and intends doing this work for the foreseeable future. He is supplied with a work vehicle and his employer pays his SGC based on his $45,000 salary. Simon has $47,000 in superannuation savings, held within the PP Superannuation Fund. The funds are invested in a balanced/ conservative portfolio with a low allocation to growth assets that earns around 4% p.a. after fees and taxes.
They are living on a semi-rural property which is valued at around $750,000, but they currently have
Allison (aged 54) and Simon (aged 52) have been married for 29 years and live at Lot 3 Wattle Road, Hurstbridge, Vic. Their only child, a daughter, Megan, is independent and has two children.
Allison has recently been promoted by her employer, Best Marketing, and now earns $135,000 p.a. working full time. She has commenced salary sacrificing 30% of this amount into superannuation, and her employer contributes Superannuation Guarantee Contributions of 9% of her remaining cash salary. The fund is a balanced growth retail superannuation fund, MM Superannuation. Her current balance is $160,000 and earns on average 7% p.a. after fees and taxes. She also has $100,000 in term life and TPD insurance cover within her superannuation fund. She drives a 4-year old Land Cruiser that is fully paid for. It has low kilometres and she expects to keep it until she retires. She will then need $30,000 to purchase a new car on top of the trade in she expects to receive from the Land Cruiser.
Simon works for Newbold’s Pty Ltd, a company which makes custom furniture. He earns around $45,000 p.a. and intends doing this work for the foreseeable future. He is supplied with a work vehicle and his employer pays his SGC based on his $45,000 salary. Simon has $47,000 in superannuation savings, held within the PP Superannuation Fund. The funds are invested in a balanced/ conservative portfolio with a low allocation to growth assets that earns around 4% p.a. after fees and taxes.
They are living on a semi-rural property which is valued at around $750,000, but they currently have