HOLMESGLEN FINANCIAL

PLANNING

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Statement
The information collected in this form is for the sole purpose of
establishing or building a financial service relationship with you.
Your personal and sensitive information is treated with the
strictest of confidence and is only provided to third parties where
you have consented. If you have any questions in relation to your
Privacy rights or wish to access or correct personal information
CLIENT(S) NAME John and Jody Smith

REPRESENTATIVE NAME ALI OUAIDA

SIGNATURE ______________________________

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Summary Personal Details
SELF PARTNER

Mr Mrs Miss Ms Mr Mrs Miss Ms

Title        

Jody
Given Names John

Preferred
Names

Smith Smith
Surname

27-07-1968 12-03-1974
Date of Birth

Married Married
Marital Status

Tax File 411454130 154541211

Number

Home Address 32 warrigal rd. Chadstone

Suburb/Town: Chadstone State: Vic Postcode: 3148.

Home Telephone (03)98785558 Preferred Contact No 0405878777

Email: MrandMrsSmith@bigpond.com.au

Child/Dependant Details

Name: Paul Smith

Relationship: Son Sex Male  Female

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Current Age: Five Dependent Yes  No

Name: Marie Smith

Relationship: Daughter Sex  Male Female

Current Age: One Dependent Yes  No

Health Details
SELF PARTNER

Are you a  Yes No  Yes No

Smoker?

Do you or any member of your family suffer from any physical disability or health
condition that may affect current or future Financial Services considerations? NO

(If yes, give details)

...................................................................................................................................

...................................................................................................................................

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Personal Goals and Objectives
Short term goals.

Set up accounts for children’s education and pay off finance on Jodie’s
Mercedes. Change the way repayments are made so that house will be paid
off sooner. Organise ‘Will’ and “power of attorney”. Reduce credit card
balance. Consider salary sacrifice and other super contributions. Consider
an increase in insurance, income protection increase,

Medium term goals.

Begin to contribute to children’s education fund, begin to contribute to

super, have credit cards paid off, make significant payments to the house
and assess whether or not short goals were achieved.

Long term goals.

Have the house paid off, have sufficient funds for children’s education,
have the Mercedes paid off, make significant gains in superannuation funds

Employment Details
John Jody

Position Title Director Personal Assistant

Employer Name Esanda NAB

Work Address 85 Spring Street Level 4 (UB4440)

Melbourne Vic 3000 800 Bourke St
Docklands VIC 3008

Current Work Phone (03)99547875 (03)98557877

No:

Start Date 27-11-1990 14-02-1989

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Preferred 58 57
Retirement Age

Are you No No
contemplating
leaving your
employer?

Do you foresee any No No

substantial change
in your income in
the next 2-5 years?

After Retirement to No No
you intend to work
again either on a full
time or part time
basis?

Income Details
SELF PARTNER

Salary $113,000 $80,000

Investment $2,400 -
Income

Super/Annuity - -
Income

Deductible - -
Amount

Other Income - -

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Expense Details

Expenses per month $

Home loan 3588

Food 1400

Utilities 500

Travel 400

Clothing 500

Rates 500

Car loan 764

Gym membership 83

Jody health insurance 83

Holiday to Queensland 416

John’s credit card 175

Jody’s credit card 200

Total expense 7652

Personal Balance Sheet

Fixed Assets
$ Further Details

Principal $640,000 Four bedroom double story

Residence Chadstone property

Contents $50,000 Includes all furniture and

home theatre.

Motor Vehicle/s $160,000 HSV GTS and Mercedes

C63 AMG

Total $850,000

Are your assets adequately insured? Yes  No

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Liabilities

Finance Date Repayme Repayme Interes Balance

Provider Commenc nt nt t Rate Outstandi
ed Amount Frequenc ng
y

Mortgage NAB 20-05- $897 Weekly 6.06 $350,00

95 % 0

John’s Credit ANZ 11-08- $175 Monthly 11.5 $4,600

Card 01 %

Jane’s Credit NAB 24-07- $200 Monthly 10.8 $8,000

Card 02 %

Jane’s Car Loan Esanda 12-05- $764 Monthly 9% $40,000

08

Personal Loan - - - - - -

Other - - - - - -

Total $4727 $402,60

per 0
month

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 Employer Superannuation
Contribution Contribution
Nam Current
Employer Employee
e Value
Company Commenced Annual Annual

Jody CBUS 14-02- $7,200 $70,000

1989

John AMP 27-11- $11,000 $105,00

1990 0

Other information (e.g. pension versus lump sum, funded or unfunded)

Jody is in a capital guarantee option and John is in an aggressive option in

Australian equities.

Investment Portfolio
Investment Reference Date Number of Current
Number Value
Invested Units

Vanguard High 25778 25-12-03 80,000 $80,000

Yield

Personal Insurance
Date Sum Premium

Insurance Description Policy Commenced Insured Per month

Number

LIFE AND TPD 45547 14-08- $250,000 $40

2003

INCOME 45546 14-08- $5,000 PER $40

PROTECTION 2003
MONTH MONTH

Other Adviser Details

Accountant
Name: Marc Jones

Company: H&R BLOCK

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Address: Shop 271, Chadstone Shopping Centre, 1341 Dandenong Road,
Chadstone, VIC

Phone: (03) 9563 0277

Email: Chadstone@hrblock.com.au

Do we have authority to contact? Yes  No

Solicitor

Name: Stephen Andrianakis

Company: Stephen Andrianakis and Associates

Address: 19 Lansdowne Street, Melbourne Vic 3000

Do we have authority to contact? Yes  No

DETERMING YOUR PERSONAL RISK PROFILE

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1. Which of the following best describes Client Partne Points
your current stage in life? r

a) Single with few financial 10

commitments. You are keen to accumulate
wealth for the future. Some funds must be kept
available for enjoyment, such as cars, clothes,
travel and entertainment.

b) A couple without children. You may be 8

preparing for the future by establishing and
furnishing a home. There are certain things you
need to buy. You are probably better off
financially now than you may be in the future.

c) Young family. This is the peak home 6

purchasing stage. You have a mortgage and a
very small amount of savings. Probably  
concerned with your financial position and the
amount of money saved.

d) Mature family. You are in your peak 10

earning years and have got the mortgage
under control. Your partner may also work and
any children you may have are growing up and
have either left home or are less financially
dependent. You are starting to think about
retirement, although it may be some years
away.

e) Preparing for retirement. You probably 4

own your own home and have few financial
commitments, however you want to ensure
that you can afford a comfortable retirement,
Interested in travel, recreation and self
education.

f) Retired. No longer working, you must rely 2

on existing funds and investments to maintain
your lifestyle. You may be receiving the
pension and are keen to enjoy life and maintain
your health.

2. In light of current interest rates, what return do you reasonably

expect to achieve from your investments?

a) A return without losing capital. 2

b) Current inflation rate plus 1-2% pa.  4

c) Current inflation rate plus 3-5% pa. 6

d) Current inflation rate plus 5-10% pa. 8

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e) Over 10% pa.  10
12
3. If you didn’t need your capital for more than 10 years, for how
long would you be prepared to see your investment not performing
well before you would change it?

a) You would change if there was any loss in 0

value.

b) Up to 3 months. 2

c) Up to 6 months. 4

d) Up to 1 year.  6

e) Up to 2 years. 8

f) More than 2 years.  10

4. How familiar are you with the

investment market?

a) Very little understanding or interest. 2

b) Not very familiar.  4

c) Have enough experience to understand the 6

importance of diversification.

d) Understand that the markets may fluctuate 8

and that different market sectors offer different
income, growth and taxation characteristics.

e) Experienced with all investment sectors and  10

understand the various factors which may
influence performance.

5. The greatest tax savings are generally obtained from investments

which may be more volatile. Which balance do you feel most
comfortable with?

a) Preferably guaranteed returns, before tax 2

savings.

b) Stable, reliable returns, minimal tax  4

savings.

c) Some variability in returns, some tax 6

savings.

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d) Moderate variability in returns, reasonable 8
tax savings.

e) Unstable, but potentially higher returns,  10

maximising tax savings.

14
6. What would your reaction be if in 6 months after placing your
investments you discover that, in line with what is happening in the
financial markets generally, your portfolio has decreased in value by
20%.

a) Distress. Security of your capital is critical  2

and you did not intend to take risks.

b) You would redeem your investment and 4

transfer your money into more secure
investment sectors.

c) You would be concerned, but would wait to 6

see if the investment improves.

d) This was a calculated risk and you would 8

leave the investments in place, expecting
performance to improve.

e) You would invest more funds to lower your  10

average investment price, expecting future
growth.

7. Which of the following best describes your purpose for investing?

a) You want to invest for longer than 5 years.   10

You understand investment markets and are
mainly investing for growth in assets such as
shares and property to accumulate long term
wealth.

b) You are nearing retirement, have surplus 8

funds to invest and you are aiming to
accumulate long term wealth from a balanced
portfolio, comprising of shares, property, fixed
interest and cash.

c) You have a lump sum (for example, an 6

inheritance or an ETP from your employer) and
you are uncertain about what secure
investments are available.

d) You are nearing retirement and you are 4

investing to ensure you have sufficient funds
available to enjoy your retirement.

e) You have some specific objectives within 2

the next 5 years for which you want to save
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enough money.

8. For how long would you expect most of your capital to be

invested before you would need to access it? (Assuming you and/or
your financial adviser has made plans to meet short term financial
goals and to handle emergencies?)

a) Less than 2 years. 2

b) Between 2 and 3 years. 4

c) Between 3 and 5 years.  6

d) Between 5 and 7 years. 8

e) Longer than 7 years.  10

Total Investor Profile Score 76 42

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Investor Risk Profile Summaries TOTAL POINTS

CONSERVATIVE
You are a Conservative investor. Risk must be very low
and you are prepared to accept lower returns to protect 0-30
capital. The negative effects of tax and inflation will not
concern you, provided your initial investment is
protected.

MODERATELY CONSERVATIVE
You are a moderately balanced investor with some
understanding of investment market behaviour. You don’t 31-45
want to see all your capital eaten away by inflation and
tax and whilst generally cautious you are prepared to
accept some short term volatility in order to achieve
some longer term capital growth.

BALANCED
You are a Balanced investor who wants a balanced
portfolio to work towards medium to long term financial 46-55
goals. You require an investment strategy which will cope
with the effects of tax and inflation. Calculated risk will be
acceptable to you to achieve good returns.

MODERATELY AGGRESSIVE
You are a moderately aggressive investor, probably
earning sufficient income to invest most funds for capital 56-70
growth. Prepared to accept higher volatility and moderate
risks, your primary concern is to accumulate assets over
the medium to long term. You require a balanced
portfolio, but more aggressive investments may be
included.

AGGRESSIVE
You are a Growth investor prepared to compromise
portfolio balance to pursue potentially greater long term >70
returns. Your investment choices are diverse, but carry
with them a higher level of risk. Security of capital is
secondary to the potential for wealth accumulation.

The risk profile asset allocation is the benchmark to commence the investment
portfolio. Upon review, the asset allocation may change by mutual agreement

17
between client and advisor. Taking into consideration the portfolio position and
investment time frame.

Investor Risk Profile Selected John- Aggressive

Jane- Moderately Conservative

I/We believe that the above rating reflects my/our attitudes and would
be pleased to consider a portfolio that reflects my/our risk portfolio.

x John Smith x Jane Smith 27/07/2010

Signature Signature
Date

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Tax File Number Authorisation
I/We give permission for my/our tax file number(s) as provided, to be held by
Holmesglen Financial planning and be forwarded to financial institutions as
requested or as necessary.

John Smith Jane Smith 27/07/10

Signed Signed Date

Client Statement/Authorisation
I/We hereby declare that the information set out in this form is true and correct to
the best of my/our knowledge. I/We are not aware of any other information and
have not disclosed to the person to whom this form is given any other information
which would be relevant to the making of a recommendation by a Holmesglen
Financial Planning Representative.

I/We give permission for this information to be used for the preparation of my
financial plan and I/We understand that the investment recommendations will be
based solely on the information supplied in this form.

John Smith Jane Smith 27/07/10

Signed Signed Date

Client Limited Advice Statement/

Authorisation
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Legislation requires that the Holmesglen planner must ‘know the client’ before
making certain recommendations. However, there is provision that in certain
circumstances a client may be supplied with limited advice.

If you are seeking limited advice of a particular nature you must make this known
at the time of the interview and you should recognise that the recommendations
will only relate to that limited advice being sought and may not be appropriate
considering your overall situation and objectives.

I/We require only limited advice as specified below:

* Insurance

* Share Portfolio

* Superannuation

* Budget Planning

* Retirement planning

x John Smith x Jane Smith x 27/07/10

Signed Signed Date

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Engagement Application
I/We request that Holmesglen Financial Planning investigate, research and provide
suitable options to the financial objectives outlined in this questionnaire.

I/We understand that the preparation fee of $700 is payable for the work to be
undertaken and this will be credited against any establishment fees should I/We
proceed to implement any of the recommendations provided with Holmesglen
Financial Planning.

I/We have elected to take advantage of the Titanium Service Package and
understand that I/We will be charged in line with this package.

John Smith Jane Smith 27/07/10

Signed Signed Date

Ali Ouaida 27/07/10

Representative Signature Date

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 Statement of Advice
Prepared for John and Jody Smith

by Ali Ouaida authorised representative of

Holmesglen financial planning

ABN 43 435 443 234

Australian financial services licence no. 43433

21 warrigal road, Chadstone, 3000

Ali Ouaida on (03) 93578575

aouaida@HFP.com.au

27 July 2010

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Disclaimer
This statement of advice has been prepared for John Smith and Jane Smith. This
statement of advice has been prepared using detailed information regarding their
current financial situation. While every attempt at accuracy has been made to
ensure accuracy Holmesglen financial planning will not be held liable for any
incorrect advice (other than unconscionable advice).

The information that has been collected is considered correct and true however if
there are any errors please contact Ali Ouaida on (03) 93578575 immediately.

This statement of advice covers the following areas:

• Financial Goals

• Financial issues

• Personal balance sheet ( Assets and liabilities)

• Superannuation including co- contributions

• Insurance

• Powers of attorney and wills

• Risk management

• Retirement planning

• Fees, charges and commissions

Statement of Advice
The statement of advice in essence is the financial plan strategy. After thoroughly
analyzing the fact finder given to the clients, a list of strategies will be formulated

What this document is about

John and Jody, you have asked for my advice to create a financial plan that will
empower you to live a financially independent retirement and how you can protect
your family in case either of you should die or become sick or injured.

This document explains my advice. At the front of the SOA, I highlight the key
points of my advice, but please make sure you read each section of the SOA.

A pointer symbol like this highlights something important

My contact details

You can contact me on: (03) 93759575

My email address is: aouaida@HFP.com.au

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Postal address: 21 Warrigal Road, 3148

Summary of my advice

What my advice is

I recommend that John gets:

• $800,000 of Life & TPD Cover from his super fund if he is unable to work
because of illness, accident or injury.

• I recommend that Jody gets $230,000 Life & TPD Cover from her super fund.

• I recommend that you use the $20,000 in your term deposit to pay off credit
cards

• I recommend that you set up a trust account for the education of you
children

• I recommend that you set up a will and appoint an executor for that will
either a member of your family or your solicitor.

• I recommend that you appoint someone to act as your authorised

representative to act on your behalf if you travel

• I recommend that you set up a budget to forecast all expenses and liabilities
so that you can plan for them and make sure that they are taken care of
when they are due.

• I recommend that the superannuation plan for John be moved into a growth
plan as he is a highly aggressive investor with an appetite for risk.

• I recommend that a salary sacrifice be made for the amount of $20,000 for
John to go towards the mortgage and for Jane to salary sacrifice $10,000 to
go towards her car loan

• I recommend that a savings plan should be implemented to finance the

family holiday instead of purchasing the holiday with their credit card.

• I recommend to John to reinvest his dividends back into his managed fund to
compound his investment

• I recommend that john takes out health insurance for the whole family as
opposed to individual cover for himself and Jody

What products I recommend

24
Why my advice is appropriate

After thoroughly analysing the fact finder I have made these recommendations
based on the information I have been given. As for the insurance, adequate
protection is essential because if for whatever circumstance you are unable to
work, coverage will be there to service the mortgage, pay bills and cover expenses
such as hospital, dental and other medical cost. More detail will be provided later.

As for the investments, by reinvesting dividends, it compounds, or multiples the

portfolio significantly and thereby when it’s to retire a large portfolio will be
waiting. If for whatever reason funds are required urgently, you can sell units as
like shares and it is a great way if liquidity is a necessity.

I recommend paying of the mortgage as quickly as possible because once it is paid

off it will remove a major financial burden and that money can be used for other
things. For example I tell many of our clients that once the mortgage is paid the
money that they pay for the mortgage can then be put towards their
superannuation. It is money that they had already allocated and thus it won’t be
missed. Again by regularly contributing to superannuation the ‘compounding’
effect will take place. And as in the managed fund this will be a nice surprise come
time for retirement.

Risks in my advice

All managed funds (including the managed funds I have recommended carry some
risk. Having said that the risk of having insufficient money come time for
retirement is far greater and to maintain a comfortable lifestyle investment that
have a great track record usually don’t carry as much risk as people think. In the
case of high risk products John has a high appetite for risk and is considered an
aggressive investor. By having this strategy and careful monitoring of the market
it can be hopped that the risk will pay off. As an aggressive investor john, you are
aware of the risk vs. reward principle.

What my advice doesn’t cover

My advice does not cover the wills, executors of the wills and other legal matters
that need to be addressed by your solicitor.

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My advice does not cover any extenuating circumstance such as a new child in the
family and if that occurs I would recommend another consultation and another
plan.

My advice does not cover general tax issues and this can be obtained by a
qualified accountant.

Fees and commissions

The fee for my advice and for preparing this SOA is $700.

Where to go from here

To decide whether to follow my advice, you should:

• make sure you understand the advice given

• ask me any questions you have.

To follow my advice, complete the authority to proceed at the end of

this document and return it to me.

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