Distribution And Financial Planning With Liquidity

Current Scenario

Discuss about the Distribution And Financial Planning With Liquidity.

The initial section comprises of the elements that would be explained in the Statement of Advice and accordingly would provide the results and the recommendations that would be helpful in the attainment of the objectives and the goals with the help of which the client would be able to reach their financial goals. The statement has even looked to explain the segments like the calculation of the superannuation, the cash flow statement, balance sheet construction and financial planning with the help of which effective level of future planning can be constructed. It is seen that estate planning as well as the retirement planning of the couple is even provided with the help of which the clients would be able to plan their future life in a cordial and effective way. The clients are even made conscious of the risks and the problems that may face in the future course of time and accordingly would be helpful for them in making use of contingency plans that would reduce the level of risks.           

The current scenario of the couple suggests that in the current time period the couple have effective level of combined salary and currently are having a life that is comfortable. They feel that they are not able to save adequate money. They are expecting a child and therefore they are looking to save adequate money with the help of which they can have a safe and secured life in the future and can even take care of the future life life of their child. They are even looking to purchase a house within 3 years and accordingly can construct plans in an effective manner. Kathryn will not be working after the child is born and she would be working after 2 years after the birth of her child. The couple are even looking for an effective level of retirement planning with the help of which they would be able to save sufficient amount of money with the help of which they can have a safe and secured lifestyle.

The goals and the objectives of the client has been explained as follows:

• The couple wants to purchase a house within 3 years from now with the help of which they can have a better lifestyle. The couple wants to purchase the house in the year 2021 within July.
• They even wants to go on a holiday on August 2018 and they want to so the same in order to go for the same before the birth of their child.
• Kathryn is looking to enter the workforce in the year 2021 with a salary that would be $42,000 and a part time work.
• Construct sufficient amount of wealth at the time of retirement within their superannuation fund at the time of retirement and the expected retirement age has been 62 years.
• They anticipate that they would be requiring a real income that is combined of $60,000 yearly in the present value of the dollar
• The couple would even look to undertake an investment plan that would be helpful in order to manage.
• They even want to reduce their extent of tax liability in order to increase their level of income
• The couple are looking to mitigate their extent of debt as fast as possible.
• The investments that they want to undertake should be balanced so that the risk profile would be suitable and the investment would be of appropriate quality

In accordance to the current scenario, it is seen that the cash flow statement has been provided that would comprise of the years 2019 to the year 2023. The table is given as follows:

Personal Details

The balance sheet for the couple has been constructed for the year 2018 to the year 2023 and this has been explained as follows:

The following table consists of the accumulated superannuation has been given as follows:

It is seen that the couple does not have effective and precise knowledge about the financial market and therefore they are looking for financial advices that would be helpful for the development of investment strategies that would be ideal for them. The couple cannot manage their investments in a proper manner and therefore are looking to create plans and policies with the help of which the couple would be able to enhance their extent of investment. The couple are scared of going through volatility and therefore does not wish to face risk within their investment. The couple are not looking for excessive returns but wants to ensure that the investment they have undertaken are risk free and would be able to provide moderate level of returns that would be effective enough in attaining their goals and objectives. In accordance to the responses provided by the student with respect to their concerns of investment in order to understand their risk profile, it can be said that the couple are looking for a risk profile that would be balanced with the help of which the client would be able to attain distinct level of returns without even having to face excessive amount of risks. The couple are looking to investments that would reduce their tax liability and accordingly make plans and policies with the help of which their future financial objectives and earnings can be secured.

The current asset allocation that is available for the client is not suitable for them because of the fact that investments are not undertaken in an equitable manner and accordingly the results that have been obtained are not in line with the objectives and the goals that have been discovered for them.  It is seen that their investments are in shares and in cash in the banks and therefore the investment is all at the extreme. In this manner, an effective asset allocation plan has been constructed for the client in the table below that would be helpful for them to create an effective allocation of the investment in the asset.

The evaluation of the risk profile of the couple can be ascertained and it is seen that the couple is looking to save sufficient amount of money with the help of which the current lifestyle can be maintained even after retirement. The table below addresses the precise asset allocation for the couple.

Objectives

The analysis of the financial scenario has explained the fact that the current financial scenario of the couple are ideal and suitable but in the near future the values may not be precise because of the fact that costs in the future would increase. In this manner, it is seen that with respect to the current situation, their investment has not been effective because of the fact that investments have been made in the equity and only in superannuation. This may lead to a rise in the loss, which can hamper their financial position. Therefore, financial strategies can be provided to them with the help of which effective level of results can be obtained and accordingly the aims and objectives of the couple can be maintained.

The key objective of the company has been to increase their level of income and savings in order to make their life after retirement in an effective manner. It is seen that the couple does not effective amount of investments and therefore the couple should look to construct plans and strategies with the help of which their investments can be made in several other balanced products.

The couple should even plan to develop on their superannuation balance with the help of which the couple would be able to increase their level of income and in that manner can plan and create strategies with the help of which the couple would be able to enhance their income level.

The couple should even purchase insurance for themselves with the help of which they would be able to safeguard their life in case of any unprecedented events and thereby their accidents can be financially remunerated. It is seen that purchase of effective insurance with respect to their life and income protection can be taken with the help of which the couple would be able to develop their income and lifestyle as well. The couple are advised to purchase health insurance in order to pay for their sickness and illness.

A financial product is even advised with the help of which the couple would be able to increase their level of returns and accordingly can make their future earnings effective and worthy. It is recommended that “Russell Investments Diversified 50 Fund Class A” product is advisable to the client with the help of which the couple would be able to increase their level of returns and accordingly maintain a healthy life even after retirement.  With the help of these strategies, the couple would be able to meet their objectives.   

Cash Flow Statement

The loan amount that can be undertaken by the couple are given as follows:

The bank that is suggested to the couple is ANZ Bank in order to take a loan in order to purchase their house and ANZ Bank is offering an interest rate of 6.35%. It is suggested that a fixed interest rate is given because of the fact that in case the there are changes in the interest rate the couple would be ensured that their interest are remains fixed and they would not have to face any  risks related to the future. The couple are advised a loan that would consist of the principle and interest loan.

Albrecht, W. and Steinrücke, M., 2017. Continuous-time production, distribution and financial planning with periodic liquidity balancing. Journal of Scheduling, 20(3), pp.219-237.

Botha, M., Du Preez, L., Geach, W., Goodall, B., Palframan, J., Rossini, L. and Rabenowitz, P., 2014. Fundamentals of Financial Planning 2015. LexisNexis: Kaapstad.

Braun, O. and Spohn, M., 2015. An MCDA Approach for Personal Financial Planning. In Evaluation and Decision Models with Multiple Criteria (pp. 533-562). Springer, Berlin, Heidelberg.

Brounen, D., Koedijk, K.G. and Pownall, R.A., 2016. Household financial planning and savings behavior. Journal of International Money and Finance, 69, pp.95-107.

Collins, J.M., 2017. Using Field Experiments to Evaluate the Impact of Financial Planning and Counseling Interventions. Journal of Financial Counseling and Planning, 28(2), pp.247-252.

Cull, M. and Sloan, T., 2016. Characteristics of trust in personal financial planning. Financial Planning Research Journal, 2(1), pp.12-35.

Grable, J., Heo, W. and Rabbani, A., 2015. Financial anxiety, physiological arousal, and planning intention. Journal of Financial Therapy, 5(2), p.2.

Kalaboukis, C. and Ramanathan, R., Wells Fargo Bank NA, 2017. Multi-sensory based notifications for financial planning. U.S. Patent 9,747,637.

Kiso, H. and Hershey, D.A., 2016. Working adults’ metacognitions regarding financial planning for retirement. Work, Aging and Retirement, 3(1), pp.77-88.

Kla?mer ?alopa, M., 2017. Business owner and manager’s attitudes towards financial decision-making and strategic planning: Evidence from Croatian SMEs. Management: journal of contemporary management issues, 22(1), pp.103-116.

Klingelhöfer, H.E., Erasmus, L.J. and Mayo, S.K., 2015. Financial planning in metropolitan municipalities—lessons for South Africa from selected countries. Journal of Public Affairs, 15(4), pp.364-376.

Kulkarni, P. and Daga, M.K., Oracle International Corp, 2017. Multidimensional sandboxing for financial planning. U.S. Patent 9,633,200.

Maher, M., 2018. Financial management: planning and charging. In BIALL handbook of legal information management (pp. 147-172). Routledge.

Martin, J. and Setzer, T., 2014, January. On the robustness of ARIMA-based benchmarks for corporate financial planning quality. In System Sciences (HICSS), 2014 47th Hawaii International Conference on (pp. 1221-1229). IEEE.

Mengel, S. and Wouters, M., 2015. Financial planning and control in very small start-up companies: antecedents and effects on company performance. International Journal of Entrepreneurship and Small Business, 26(2), pp.191-216.

Poynton, T.A., Lapan, R.T. and Marcotte, A.M., 2015. Financial planning strategies of high school seniors: Removing barriers to career success. The Career Development Quarterly, 63(1), pp.57-73.

Price, D., Bisdee, D., Daly, T., Livsey, L. and Higgs, P., 2014. Financial planning for social care in later life: the ‘shadow’of fourth age dependency. Ageing & Society, 34(3), pp.388-410.

Rehan, R., Unger, A., Knight, M.A. and Haas, C., 2015. Strategic Water Utility Management and Financial Planning Using a New System Dynamics Tool. Journal: American Water Works Association, 107(1).

Tedesco, D., 2015. I, robo-adviser? Creating the blended adviser experience. Journal of Financial Planning, 28(1), p.17.

Verstina, N.G., Akimova, E.M., Kisel, T.N., Chibisova, E.Y. and Lukinov, V.A., 2015. Financial planning at small construction enterprises at the formation stage. International Journal of Economics and Financial Issues, 5(3S)

Order an Essay Now & Get These Features For Free:

Turnitin Report

Formatting

Title Page

Citation

Outline

Place an Order