Statement of Advice 3Swinburne PDF

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14th September 2020

57 West Side Drive Ferntree Gully, Victoria 3185

Dear Kevin and Julia, Thank you for coming to our firm for advice on your financial requirements. We have provided a detailed plan with strategies and recommendations after taking into account your current financial situation and goals. Please note that this document is reliant on the information provided to us and must be read carefully and should be understood regarding the recommendations provided based off this information. If you have any questions or do not understood any information within the document, please contact me immediately for clarification.

Yours sincerely,

3 Swinburne Authorised Representative

Statement of Advice (SoA) Dated: 14 September 2020 Prepared for: Mr. Kevin Huang & Mrs. Julia Huang

Advice Prepared by: 3 Swinburne Authorised Representative No. 3 Credit Representative No. 10 A: 53 University Street, Kallangur QLD 4503 P:07 3222 8555 E: [email protected] Website: WWW.SwinburneFinancialPractice.com.au Authorised Representative of: Swinburne Financial Practice AFSL: 232383 ABN: 81 888 555 362 This is an important document! Please read this document carefully. If there is anything you disagree with or do not understand, please contact your Adviser. If you change your mind about the financial products you decide to buy or any other action you decide to take, contact your Adviser immediately. You have a statutory 14-day cooling-off period in which you may be allowed to cancel certain types of financial products. Details of the cooling-off period are detailed within the Product Disclosure Statements. The recommendations contained in this document are current for a period of 30 days. Please consult your Adviser if you wish to proceed after this time as your needs or circumstances may have changed

Table of Contents Your Current Situation

Page Error: Reference source not found

Scope of our Advice

Page 5

Your Goals and Objectives

Page 6

Your Tolerance to Risk

Page 7

Summary of our Advice

Page 10

Our Recommended Strategies

Page 11

Financial Outcomes of our Recommended Strategies

Page 15

Our Ongoing Services

Page 18

Our Disclaimers

Page 19

The Cost of our Advice

Page 20

Authority to Proceed with our Advice

Page 21

How to Implement our Advice

Page 23

Your Current Situation This section contains key information about your current circumstances and forms an important part of our advice to you. The information you have provided to us is crucial in understanding your current financial situation and identifying opportunities. Our understanding of your current situation is detailed below. As our advice is based on this information, please advise us immediately if there are any errors or omissions as this may affect the appropriateness of our advice for you.

Your Personal Details Kevin

Julia

Mr.

Mrs.

Given Name

Kevin

Julia

Surname

Huang

Huang

30

29

Date of Birth

05 May 1990

12 December 1990

Marital Status

Married

Married

66

66

Kevin

Julia

Details not provided

Details not provided

Drik Arts Center

Braintree Primary School

Manager (Admin / Qualified / $100K to $120K)

Education - Teacher (Non-Manual Subjects)

Full-time

Full-time

Kevin

Julia

Will in place

No

No

Will last updated

N/A

N/A

Power of Attorney(s)

N/A

N/A

Title

Age

Anticipated Retirement Age

Your Employment Details

Occupation Employer Employment Type Employment Status

Your Estate Planning Details

Your Income Income

Owner

Amount ($) per annum

Ordinary Wages

Kevin

$115,000

Ordinary Wages

Julia

$40,000

Total

Mr. Kevin & Mrs. Julia Huang

$155,000

Statement of Advice (SoA) Page | 2

Your Expenses Expenses

Owner

Amount ($) per annum

Income Tax

Kevin

$30,047

ANZ Bank

Kevin

$20,000

Pre-Tax Contributions

Kevin

$10,925

Income Tax

Julia

$4,547

Bank of Melbourne Vertigo Card

Julia

$10,000

Cosmetics

Julia

$600

Pre-Tax Contributions

Julia

$3,800

Electricity

Joint

$4,000

Water

Joint

$1,800

Mortgage Payments

Joint

$21,468

Housing Maintenance

Joint

$3,500

Mobile

Joint

$2,376

Television

Joint

$216

Petrol

Joint

$2,400

Car Maintenance

Joint

$720

Groceries

Joint

$9,600

Dining Out

Joint

$2,400

Clothing

Joint

$2,000

Hairdressing

Joint

$1,200

CDs, Videos, Movies

Joint

$200

Memberships

Joint

$1,680

Other Food Expenses

Joint

$6,000

Doctor

Joint

$500

Total

($139,979)

Your Lifestyle Assets Lifestyle Assets

Owner

Asset Value

Superannuation

Kevin

$70,000

Superannuation

Kevin

$15,000

Current Savings

Julia

$30,000

Superannuation

Julia

$50,000

Current Savings

Joint

$15,000

Primary Residence

Joint

$550,000

Mr. Kevin & Mrs. Julia Huang

Statement of Advice (SoA) Page | 3

Motor Vehicle

Joint

$30,000

Household Contents

Joint

$50,000

Total Lifestyle Assets

$810,000

Your Liabilities Liabilities

Owner

ANZ Bank - ANZ Bank

Loan Term

Repayment ($)

Interest Rate

Kevin

$20,000.00 Yearly

Fixed 15.00%

$20,000

Bank of Melbourne Bank of Melbourne Vertigo Card

Julia

$10,000.00 Yearly

Fixed 15.00%

$10,000

ANZ Bank -

Joint

$1,789.00 Monthly

Variable 4.50%

$300,000

Total Liabilities

Balance

$330,000

Superannuation Your Superannuation – Kevin Insurance Held

Taxable Component

Tax-Free Component

AMP MyNorth Super

No

$70,000

$0

$70,000.00

REST Employee Super

No

$15,000

$0

$15,000.00

Fund Name

Total Balance

Your Superannuation – Julia Fund Name MLC MasterKey Super ($50,000 to $99,999)

Owner

Insurance Held

Taxable Component

Tax-Free Component

Julia

No Insurance

$50,000

$0

Total Balance $50,000

You do not currently hold or have not provided us details or your insurance policies

Mr. Kevin & Mrs. Julia Huang

Statement of Advice (SoA) Page | 4

Scope of our Advice This section describes areas of advice included within this advice, areas of advice excluded from this advice, and any limitations of our advice that may apply to you.

This Statement of Advice (SoA) is a tailored financial plan that sets out our understanding of your current situation and objectives and details our recommendations to assist you towards achieving your stated goals and objectives. To be effective, it must be flexible and reviewed regularly over time to ensure it remains responsive to changes in personal situation, financial markets and legislation - so as things around you change, your financial plan stays on track. Scope(s) covered in this advice At your request, the advice provided in this Statement of Advice (SoA) is limited to the following areas:    

Superannuation Wealth Creation Cashflow Management Estate Planning

Scope(s) not covered in this advice The following are areas of advice that you requested and/or have confirmed that you do not require our advice on:    

Retirement Planning Personal Insurance Social Security Gearing

Limitation(s) of our advice  

We are not licensed to provide advice regarding specific insurance products. We recommend you consider engaging a licensed insurance adviser and can provide a recommendation for an adviser for these requirements. We are not licensed to provide legal documentation regarding estate planning arrangements. We recommend you both take steps to prepare current wills and address power of attorney through a licensed solicitor, advanced directives and superannuation beneficiaries.

Mr. Kevin & Mrs. Julia Huang

Statement of Advice (SoA) Page | 5

Your Goals and Objectives This section describes your reasons for seeking our advice and highlights the goals and objectives that wish to achieve.

This section covers your reasons or goals for seeking our financial advice: Kevin Kevin, below are your stated goals and objectives: Category Other

Goals & Objectives

Timeframe

Superannuation Accounts Rollover

Short Term

Joint Kevin and Julia, below are your stated joint goals and objectives: Category Savings and Investment Debt Management

Goals & Objectives Savings - Asia Holiday 2025

Timeframe Medium Term

Debt Repayment within 2020.

Short Term

Savings and Investment

Savings Offset Account

Short Term

Savings and Investment

Joint Investment

Short Term

Mr. Kevin & Mrs. Julia Huang

Statement of Advice (SoA) Page | 6

Your Tolerance to Risk This section describes the level of risk that you are comfortable with and shows how we will invest your money accordingly

Your attitude and tolerance towards risk forms an important aspect in determining the range of strategies and/or investment options which may be appropriate to help you achieve your goals. We have outlined your attitude towards risk below: Your risk profile – Kevin Kevin, the results from our discussions and the risk profile questionnaire you have completed reflect a Balanced risk profile. Kevin

Asset Class

Risk Profile – Balanced

Benchmark Allocation

Growth Domestic Equity

30.00%

International Equity

10.00%

Domestic Property

10.00%

International Property

20.00%

Defensive Domestic Fixed Interest

10.00%

International Fixed Interest

10.00%

Domestic Cash International Cash Alternatives

5.00% 5.00% 0.00%

Other Other

Mr. Kevin & Mrs. Julia Huang

0.00%

Statement of Advice (SoA) Page | 7

Your risk Profile – Julia Julia, the results from our discussions and the risk profile questionnaire you have completed reflect a Conservative risk profile.

Julia

Asset Class

Risk Profile – Conservative

Benchmark Allocation

Growth Domestic Equity

15.00%

International Equity

10.00%

Domestic Property

0.00%

International Property

15.00%

Defensive Domestic Fixed Interest

10.00%

International Fixed Interest

50.00%

Domestic Cash International Cash Alternatives

0.00% 0.00% 0.00%

Other Other

Mr. Kevin & Mrs. Julia Huang

0.00%

Statement of Advice (SoA) Page | 8

Your risk profile – Joint The results from our discussions and the risk profile questionnaire you both have completed reflect a Defensive risk profile.

Joint

Asset Class

Risk Profile – Defensive

Benchmark Allocation

Growth Domestic Equity

15.00%

International Equity

10.00%

Domestic Property

10.00%

International Property

20.00%

Defensive Domestic Fixed Interest

10.00%

International Fixed Interest

35.00%

Domestic Cash International Cash Alternatives

0.00% 0.00% 0.00%

Other Other

Mr. Kevin & Mrs. Julia Huang

0.00%

Statement of Advice (SoA) Page | 9

Summary of our Advice This section summarises our strategic recommendations to assist in meeting your stated goals and objectives.

After consideration of your goals, the following are our summarised recommendations: We have reviewed several managed fund investment options and recommend that $20,000 from current savings is utilised to investment in an ETF through the Swinburne portfolio management services. This option allows for wealth growth with a lower range of risk to your investment overall. After review of Kevin’s superannuation’s accounts, we recommend that Kevin’s super balances are immediately rolled over into the AMP MyNorth account, and that your investment percentages amended to better suit your balanced investment profile. Based upon your goal of $50,000 for a holiday in 2025, we recommend opening a savings account with Bank of Melbourne, and set up an automatic deposit per month of $830.00, allowing for a final amount of $51,010.05 saved by 2025.

Further we strongly recommend that your credit card debt is immediately repaid with current savings and both credit cards are closed to avoid unnecessary spending. Lastly, we recommend establishing a mortgage offset account with your current banking facility ANZ, using $20,000 of your current savings. This will enable you to pay less interest overall on the remainder of your loan and also can lead to potentially repaying your home loan by ages 34-35 (year 2025). Please see our projections later in this document as to this target.

Mr. Kevin & Mrs. Julia Huang

Statement of Advice (SoA) Page | 10

Our Recommended Strategies This section provides details of the strategies that we have recommended to help meet your stated goals and objectives.

Recommended Strategies for Kevin and Julia Kevin and Julia, based on your financial position and your stated joint goals and objectives, we have made the following recommendations:

Debt Repayment - Credit Cards Currently you have both indicated that you would like to repay current credit card debts as soon as possible. Both cards are currently subject to 15% interest per annum. Your current debts are listed below; Kevin Credit Card (ANZ) - $30,000 ($2,500 Monthly Balance) Julia Credit Card (Bank of Melbourne) - $10,000 ($834.00 Monthly Balance) We are assuming that the current balances on the cards are the credit limit max divided by 12 months without further information.  

There is currently $45,000 within your joint savings and including Julia's savings which we recommend that $3,334.00 of the savings is immediately used to repay both of the above debts, and both credit facilities should be closed with the respective banks.

Invest in a Portfolio of Managed Funds As requested, we have reviewed suggested managed investment options for review. This strategy takes into account savings funds not stored in Superannuation or set aside for the 2025 holiday and debt consolidation. You have both have indicated the requirement to ensure that immediate existing debt is repaid before entering into further financial decisions however we can provide some information on other investment strategies that can be used to create wealth should you so choose. Managed funds and ETFs (exchange traded funds) are worth considering for investment outside of Superannuation. · Managed funds are a pool of investors’ money that is then invested on your behalf by a fund manager who buys and sells the assets on your behalf. This could range from shares to bonds. With this option you don’t own the underlining investment you will own units in the fund. You will however experience the growth benefits and downfalls.

Mr. Kevin & Mrs. Julia Huang

Statement of Advice (SoA) Page | 11

· ETFs are a type of managed fund that can be traded on an exchange (such as the Australian Securities Exchange (ASX). In most cases the ETFs won’t outperform the market, rather the fund manager will track an index (for example the ASX200 or S&P500) or specific commodities such as gold. We recommend utilising $20,000 of your existing savings for this goal

Establish a Regular Savings Plan for Target Holiday 2025 As previously advised, you wish to create a savings plan for a targeted holiday in 2025 that is estimated to cost $50,000. Your current savings balances are outlined below, Joint Julia Personal Estimated Yearly Savings

Savings Account Savings Account Estimated Savings Per Annum

$15,000 $30,000 $15,000

As you have indicated further goals for a savings offset account and joint investment outside of superannuation as well as required debt repayment, as such this recommendation will allow for a yearly deposit of $10,000 per annum for usage to build a savings budget for the expected 2025 holiday with other funds allowed for other goals. We have considered current savings options with your current banking facilities being ANZ Bank and Bank of Melbourne and have identified the below as the current ideal option. Bank of Melbourne Account – Incentive Saver  1.00% p.a. returns for balances up to $99,999. This rate is a base variable rate of 0.20% p.a. with an additional bonus rate of 0.80% p.a. dependent on monthly deposits.  Requires a deposit of at least $50.00 per month to earn the additional 0.80% interest rate.  No monthly service fee or staff assisting fee applicable.  Base rate is a variable rate, can be affected by changes to interest rates within the market.

Based upon an assumed interest rate of 1.00% p.a. (allowing for compliance to the required monthly deposits), we have calculated the future value of your savings as follows.

Mr. Kevin & Mrs. Julia Huang

Statement of Advice (SoA) Page | 12

Yearly/Monthly Balance

Savings Account ($830.00 Per Month Deposit)