Designed to help us get to know you better

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1 Version Apr 2014 Client 1: Client 2: Entities: Company Trust SMSF Supplementary Fact Find Completed? Designed to help us get to know you better This fact find is designed to help gather your relevant personal and financial information, and goals. We use this information, along with our discussions, to help develop a financial strategy that is suitable for your needs. Potential strategies and products may be discussed during the information gathering process. These should only be acted upon once formal advice, information and explanation have been provided in a suitable advice document. We look forward to assisting you to reach your financial goals. If you have any questions about this please contact us. Sydney Financial Planning ABN Suite 13, Level 2, 201 New South Head Road, Edgecliff NSW 2027 phone web @sydneyfinancialplanning.com.au Your Financial Planner: Date of Completion: / / Authorised Representative of Charter Financial Planning AFSL:

2 Things that make me happy and are going well Things that stress me and need solutions Priorities 1. Priorities

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4 Things that make me happy and are going well Things that stress me and need solutions Priorities 1. Priorities

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6 Your Age Life Map

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8 Contact Details Title Client 1 Client 2 Mr Mrs Ms Mr Mrs Ms Dr Miss [ ] Dr Miss [ ] Surname First name Preferred name Date of birth age / / age Country of residence/citizenship Residential address If less than two years, last address Postal address Preferred method of contact as above home / work telephone home / work ( ) mobile mobile Social Media accounts LinkedIn twitter facebook LinkedIn twitter facebook Electronic document delivery You can request a paper copy of these documents at any time, free of charge. If you wish to unsubscribe from electronic document delivery, please contact our office. Preferred method of delivering documents If electronic, which documents? Tax File Number printed electronic printed electronic FSG PDS FDS SOAs Ongoing Advice Documents FSG PDS FDS SOAs Ongoing Advice Documents _ Associated Entities See attached Supplementary or Additional Fact Find Entity name: Entity type: Company Trust SMSF Other. ABN/ACN: Entity name: Entity type: Company Trust SMSF Other. ABN/ACN: Customer Reference Number (Centrelink) Customer Identification By law we are required to collect, verify and store your information before we can arrange to invest your money. Select the verified ID source retained on file. Driver s licence Passport Other photo ID Provide one primary ID source OR Provide two secondary ID sources [ID type ] [ID type ] [ID type ] [ID type ] Your Fact Find / Page 8

9 Family & health Client 1 Client 2 single married single married Marital status widow de-facto widow de-facto divorced engaged divorced engaged other [ ] other [ ] Name Date of birth Financially dependent? To Age: / / age Children / Dependents / / age / / age / / age Mother Do any of your children have special needs? Do you have any other financial dependants? Are there other family matters I should know? Current Age Cause of death (if applicable) Current Age Yes No Yes No Yes No Cause of death (if applicable) Parents Father Current Age Cause of death (if applicable) Current Age Cause of death (if applicable) Your Health/Hobbies (Please provide details of any health issues, or concerns, sports, hobbies and other interests if applicable) Select if you smoke? Yes average per day Yes average per day Select if you consume alcohol? Yes average per week Yes average per week Select if you have private health insurance Yes Yes Select if you are exempt from the Medicare surcharge Yes Yes Family Health (Please provide details of your family s health history if known) Notes Your Fact Find / Page 9

10 Cash flow Providing copies of payslips, tax returns, investment statements and insurance renewals will allow us to use accurate information to prepare our advice documents. Employment Details Client 1 Client 2 Occupation / position Industry full time part time full time part time casual contractor casual contractor Employment status self employed self employed unemployed retired unemployed retired not working (ill health) not working (ill health) Name of employer or business name if self employed Date started Address of Employment or registered business address ABN (if applicable selfemployed) If you are expecting a change to your employment conditions, please provide details. Client 1 Client 2 Employment type Occupation Date started / Date finished Employer / Business name if self employed Employer / Business registered address Permanent full time Permanent part time Fixed term Casual Not working/retired Contract Contract end date:. Permanent full time Permanent part time Fixed term Casual Not working/retired Contract Contract end date:. Your Fact Find / Page 10

11 Comments if previous employment less than 2 years. Leave Client 1 Client 2 Outstanding Leave Days Value Days Value Annual Leave Sick Leave Long Service Leave Notes Your Fact Find / Page 11

12 Income Only include information about your regular income. Attached Client 1 Client 2 Salary (excluding super) Less salary sacrifice ( ) ( ) Income from investments Rental income Super Pension Centrelink / DVA Name of payments [ ] Other Gross Income Less Deductible Expenses ( ) ( ) Taxable Income Less Income Tax ( ) ( ) Less Medicare Levy ( ) ( ) Total Net Income Combined Net Income Reportable fringe benefits? Notes Your Fact Find / Page 12

13 Expenses Record details about extraordinary or once off expenses with your short or long term goals. If you require more space please complete our online budget planner or ask us for a detailed printed version. The online budget planner / printed budget planner has been completed. The results are attached to this fact find Monthly Mortgage repayments / rent Investment loan repayments Car lease / loan / personal loan Credit card Contributions to super Savings / investment plan Investment property rates/strata/water/repairs Home rates / electricity / gas / water Phone / internet / pay TV Insurance home / contents Groceries Dining out / lunches / coffee Insurance personal Private health insurance Medical doctor / dentist / optometrist Medical - prescriptions Medical physiotherapy / other Education self Education children school fees Education children uniform/text books/act Child care Car petrol Car insurance / registration Car tolls / servicing / repairs Theatre / cinema / memberships / subscriptions Hobbies / gym / sport Clothing / shoes / dry cleaning Hair / make up / beauty Holidays short stays Holidays - extended Gifts Cigarettes / alcohol Pet expenses food / vet / grooming Outstanding Tax Liability Other [ ] Total annual expenses Annually Surplus / Deficit Income - expenses = annual surplus / (deficit) Notes Your Fact Find / Page 13

14 Net Wealth Providing copies of your mortgage, superannuation and investment statements, rates notices, Centrelink schedules and pension accounts will allow us to use accurate information to prepare our advice documents. If you require more space, please attach a blank page. Lifestyle Assets & liabilities Description Details Assets Liabilities Insurance Owner Current value Loan outstanding Interest rate paid Principal residence % Contents % Motor vehicle 1 % Motor vehicle 2 % Loan type e.g. P&I Lender Insured? Yes No Yes No Yes No Yes No Credit card % Bank account % Bank account % % % Total Net Assets Investment property assets and liabilities Details Assets Liabilities Income & expenses Description Owner Date purchased & price Current value Loan type e.g. P&I Outstanding loan amt. Int. rate Lender Income Expenses % % % % Total Net Assets Notes Your Fact Find / Page 14

15 Property Security Security property 1 Security property 2 Exact name(s) to appear on Title Exact name(s) to appear on Title Address Suburb Address Suburb State Post code State Post code Owner occupied Investment Owner occupied Investment Property type House/Villa Unit Townhouse Vacant land Other Purchase price or Estimated market value Property type House/Villa Unit Townhouse Vacant land Other Purchase price or Estimated market value Contact details for access: Contact details for access: Other non-superannuation investments (continued) Please include direct shares, managed funds, investment properties. Investment assets Owner: C1 / C2 / Joint / Entity Asset Owner Amount Invested Date Invested Units/shares Current Value Income from asset Contributions /mth & portfolio Reinvest Income yes no yes no yes no yes no Fee structure: upfront/ongoing or % or % or % or % Investment Liabilities Loan amount outstanding Lender Loan Type P&I Interest only P&I Interest only P&I Interest only P&I Interest only Interest rate % % % % Payment Frequency Net Asset Value * Provide CHESS holding statement or purchase date/amount details if considering the sale of shares. If loans are in relation to more than one asset please list on a single line in the table above. Feel free to attach additional information, eg loan structure, to this questionnaire. Notes Your Fact Find / Page 15

16 Other non-superannuation investments (continued) Please include direct shares, managed funds, investment properties. Investment assets Owner: C1 / C2 / Joint / Entity Asset Owner Amount Invested Date Invested Units/shares Current Value Income from asset Contributions /mth & portfolio Reinvest Income yes no yes no yes no yes no Fee structure: upfront/ongoing or % or % or % or % Investment Liabilities Loan amount outstanding Lender Loan Type P&I Interest only P&I Interest only P&I Interest only P&I Interest only Interest rate % % % % Payment Frequency Net Asset Value Notes Your Fact Find / Page 16

17 Superannuation assets and contributions Fund Name Owner: Client 1 / Client 2 Account number Current Value Fund type Personal Default Personal Default Personal Default Personal Default Asset allocation Investment details Defensive vs growth assets % Defensive % Growth % Defensive % Growth % Defensive % Growth % Defensive % Growth Concessional contributions Superannuation Guarantee 9.25% 9.25% 9.25% 9.25% Salary Sacrifice Self Employed Non-concessional contributions Personal [Other ] ETP Components (if applicable) Binding nominations Taxable: Taxable: Taxable: Taxable: Tax-free: Tax-free: Tax-free: Tax-free: Available? Yes Available? Yes Available? Yes Available? Yes In place? Yes In place? Yes In place? Yes In place? Yes Who are the beneficiaries? Fees Annual admin fees (sxcl trail) or % or % or % or % Trail commission % % or % or % Adviser review fees or % or % or % or % Trustee/member fee or % or % or % or % Contribution fee or % or % or % or % Exit fee or % or % or % or % Provisions for tax on exit Type: Type: Type: Type: Insurance Yes No Yes No Yes No Yes No Note: Details on insurance held under superannuation can be recorded in the financial protection section of this document. Total Superannuation Assets Client 1: Client 2: Your Fact Find / Page 17

18 Retirement income fund Please record details of all annuities or account based pensions, even if they have a residual capital value of 0. Pension name Account number/ details attached Owner Value Total Net Wealth Total assets total liabilities = your net wealth Please provide details of the following: mortgage /line of credit credit card Where an income deficit is identified, how is this currently funded? other [ ] Does your employer authorise any of the following items to be packaged in your salary? vehicle computer organiser other [ ] Are you eligible to exercise super choice? Yes No Does your employer allow you to salary sacrifice? Yes No Do you have an outstanding tax liability or HECS debt? Do you expect your income to substantially change during the next? 1 year decrease increase to 5 years decrease increase to Do you expect your expenses to substantially change during the next? 1 year decrease increase to 5 years decrease increase to Are you expecting any capital gains from the sale of investments this year or in the near future? Do you have any unused capital losses carried forward from the previous sale of an investment(s)? Have you made withdrawals from your superannuation in the past? Have you given any personal guarantees on family or friend s debt? Notes Your Fact Find / Page 18

19 Current Insurances Please select this if you have provided statements from your insurance provider/s. If you require more space, please attach a blank page. Current Personal Insurance Details Policy 1 Policy 2 Policy 3 Policy 4 Company Type Life TPD Life TPD Life TPD Life TPD IP Trauma IP Trauma IP Trauma IP Trauma Policy Number Product type Deluxe / standard Deluxe / standard Deluxe / standard Deluxe / standard Policy Owner & Entity Super.. Super.. Super.. Super.. Insured Sum Insured Waiting period (IP) Days Days Days Days Benefit period (IP) Years Years Years Years Benefit indexation Yes / No Yes / No Yes / No Yes / No Underwriting required Yes / No Yes / No Yes / No Yes / No Cover available until age Multiple policy discount Yes / No Yes / No Yes / No Yes / No TPD occupation definition Any / Own Any / Own Any / Own Any / Own Exclusions / Loading Option(s) i.e. increasing claims Guaranteed renewable IP guaranteed/ indemnity cover, other Premium structure Stepped / Level Stepped / Level Stepped / Level Stepped / Level Multiple policy discount Yes % / No Yes % / No Yes % / No Yes % / No Death: Death: Death: Death: Premium p.a. and premium-break up TPD: TPD: TPD: TPD: Trauma: Trauma: Trauma: Trauma: IP: IP: IP: IP: Total: Total: Total: Total: Your Fact Find / Page 19

20 Details Policy 1 Policy 2 Policy 3 Policy 4 Company Type Life IP TPD Trauma Life IP TPD Trauma Life IP TPD Trauma Life IP TPD Trauma Policy Number Policy Owner & Entity Super.. Super.. Super.. Super.. Insured Sum Insured Exclusions / Loading Option(s) Death: Death: Death: Death: Premium p.a. and premium-break up TPD: TPD: TPD: TPD: Trauma: Trauma: Trauma: Trauma: IP: IP: IP: IP: Total: Total: Total: Total: List any features or benefits of your policies that you would like to retain. Your Fact Find / Page 20

21 Estate Planning Client 1 Client 2 Do you have a Will? Yes No Yes No When was it last reviewed? m m / y y y y m m / y y y y Is the executor to your Will current Have your circumstances changed since it was last reviewed? Please provide details below. Have you been married before? Please provide details below. Do you have a Power of Attorney Yes No Yes No General Enduring General Enduring Medical Medical Who are your attorneys under power? Do you have provision in place for a testamentary trust? Yes No Yes No Do you have a funeral plan? Yes No Yes No For superannuation only, do you have any binding nominations in place? Yes No Yes No If yes: Who are they to? When were last reviewed? In order to provide appropriate advice, we need to consider various strategies. These strategies can be influenced by your intentions regarding the distribution of your assets after your death. Do you have intentions regarding the distribution of your assets after your death? Would you like to be referred for advice on estate planning? Yes No Yes No Referred to: Notes If you have any special estate planning issues or requirements, such as special bequests, testamentary trusts or substantial inheritances, that we should be aware of, please provide details below Your Fact Find / Page 21

22 What s on your mind? Why have you sought financial advice? In your own words, please explain the reasons why you have sought advice. For example: I would like to know the quickest way to pay off my debts. Common areas of advice: Debt reduction Wealth accumulation Retirement planning Superannuation Tax planning Insurance Estate planning Self-managed super funds Home and property Budgeting and saving Social security Aged care Kids education funding Succession planning for business Seeking advice What life stage are you at? Starting up (starting career, first investment) Growing richer (raising family, paying off debt accumulating wealth) Fine tuning (looking to retire in the next few years) Enjoying life (retired on your own terms) What opportunities or ideas would you like to explore and develop? How do you feel about your current lifestyle: Unhappy Content Happy Extremely satisfied What are your main goals, dreams, aspirations and visions for you and your family? What would achieving these mean for you and your family? What are your main issues, challenges, frustrations keeping you awake at night? What impact / stress is this having on your family? Are you ready to start working towards your financial independence? Yes No Your Fact Find / Page 22

23 Please rate the following issues in terms of their value to you so that we can focus our recommendations on the things most important to you. Planning Issues Provide structure and keep you organised Save you time Simplify your financial affairs Clarify your goals and sharpen your focus Gain a sense of progress and achievement Relief you ve taken action Provide you with a sounding board for decision making Working with a team of experts Working with an experienced planner with the highest qualifications Protecting your assets and lifestyle Managing and reducing your debts Maintaining consistency of your income Structuring assets tax effectively Organising your super Providing for your children s education Having active control of your investments Having a portfolio that is easy to understand and manage Leaving an inheritance for your family/others Maximising Centrelink benefits Flexible advice fee payment methods Achieving a reliable retirement income Protecting your capital from poor market returns Ensuring your income outlasts you in retirement Ensuring your assets are passed on to the right people Other please specify Notes Value Low Medium High Comments Your Fact Find / Page 23

24 Notes Your Fact Find / Page 24

25 Your cash flow, debt and investment goals Cash buffer How much money do you want to have available in case of emergencies? Client 1 Client 2 Current savings and capacity to save Couples please provide a joint response Do you save money on a regular basis? yes no yes no Do you work to a budget? yes no yes no How much do you save now? frequency frequency How much do you think you could comfortably save if you worked to a budget? mortgage bank account Where do you currently direct your surplus income? savings plan for kids super holiday other: Current debt servicing Do you know your current interest rate? Are you comfortable with your current level of debt? At what age do you want to be debt free? Based on your current repayments when do you expect to payout your home loan? When would you like it paid off by? Do you have an accelerated debt reduction strategy in place? How long will you stay in your current home? Once your home loan is paid in full, will you commence paying down other (investment) debt or start investing for retirement? Are your lifestyle debts: Is the balance of your credit card(s) cleared on a monthly basis? Would you be more inclined to borrow or save to fund your goals? Have you borrowed money in the past to invest and build your wealth? Are you comfortable with the idea of borrowing to invest in order to build long term wealth? Focus on other debt Focus on retirement savings Increasing Staying the same Borrow Decreasing Save Your Fact Find / Page 25

26 Please list your short and long term goals here. Try to be specific as to the purpose, timeframe and amount of funds required. Also list assets that you would like to sell including the timeframe and amount you are likely to receive. Shorter term goals Generally less than five years Try to be specific as to the purpose and timeframe of funds required. Also list assets that you would like to sell including the timeframe and amount you are likely to receive. Longer term goals Generally greater than five years Try to be specific as to the purpose and timeframe of funds required. Also list assets that you would like to sell including the timeframe and amount you are likely to receive. Description Likely date Amount required Description Likely date Amount required Strategies to implement now Now that we have set specific and measurable goals, we will outline how these will be addressed and the strategies we agreed to. Debt Management 1. Chunked 2. Accelerated 3. Consolidated Goals to be addressed in the future Goal Reason for not addressing now Risk of not addressing now There are some goals that will not be addressed at this time. These are still important and we agree these will be addressed at future reviews. Your Fact Find / Page 26

27 Retirement lifestyle Please note: if you are not sure how much income you need, we will we have a retirement budget planner to help you determine how much you will need. Retirement other considerations / alternatives What options would you consider should you not be able to meet your retirement income goal Client 1 Client 2 At what age do you want to retire? age age For Couples: Do you plan to retire at the same time? What income do you think you will need to live your desired lifestyle? Is this Joint what % are you contributing? If you couldn t retire at your target age with your desired level of income would you be willing to accept a lower level of income? Would you be willing to retire at a later age if it meant increasing the probability of having your desired level of income? Would you be prepared to access the equity in your home to fund your retirement? (Reverse Mortgage) Would you consider downsizing your family home at retirement? Would you feel comfortable with increasing your risk profile in accumulation stage to help reach your retirement goal? Would you sell your business assets and use funds to provide a retirement income? Would you consider relying on Centrelink Age Pension to supplement income from investments? Partner to provide shortfall? % % age Yes No Yes No Yes No Yes No Yes No Yes No age Retirement savings Which assets other than your superannuation are you planning to use to fund your retirement? Assets Expected value at retirement Will the asset be sold or retained to generate income? Expected income Sale value Expected inheritance Are you expecting to receive an inheritance that can form part of your retirement plan? Who? Expected value Expected date Your Fact Find / Page 27

28 Strategies to implement now Now that we have set specific and measurable goals, we will outline how these will be addressed and the strategies we agreed to. Goals to be addressed in the future Goal Reason for not addressing now Risk of not addressing now There are some goals that will not be addressed at this time. These are still important and we agree these will be addressed at future reviews. Your Fact Find / Page 28

29 Your insurance goals If you would like to learn more about how insurance can help you protect your wellbeing, please ask us for a copy of our insurance fact sheet. The online insurance needs calculator has been completed. The results are attached to this fact find. Concerns If protection is required, you must explain why it is required. Client 1 Client 2 To protect income against sickness or accident? Yes Yes Why? To protect your family or assets in the event of death? Yes Yes Why? To protect against a critical illness or trauma? Yes Yes Why? To protect your family or assets in the event of receiving a total and permanent disability or illness? Yes Yes Death and TPD Needs Client 1 Client 2 Repay debts In full In part (please state) Replacement income (pa) Earnings rate % % Term required yrs yrs Carer allowance / nanny Final expenses (death only) Allowance for medical costs (TPD only) [other] Total Needs Less offsets Existing insurance Assets to be sold Superannuation death benefits [other] Adviser Recommended Yes Yes Life cover required TPD cover required As above As above Your Fact Find / Page 29

30 OR Death and TPD If you waived the option to obtain an insurance needs analysis, the amount requested may not be appropriate to meet your needs. Client requested cover How was this amount determined by the client? Client 1 Client 2 Life Life TPD TPD Trauma Needs Client 1 Client 2 Repay debts In full In part (please state) Replacement income (pa) Earnings rate % % Term required yrs yrs Allowance for medical costs [other] Total Needs Less offsets Existing insurance Assets to be sold [other] Adviser Recommended Yes Yes Total cover required OR Trauma If you waived the option to obtain an insurance needs analysis, the amount requested may not be appropriate to meet your needs. Client 1 Client 2 Client requested cover Trauma Trauma How was this amount determined by the client? Notes Your Fact Find / Page 30

31 Income protection Option 1 Client 1 Client 2 Maximum cover available 75% monthly income 75% annual income Option 2 Cost of living Other expenses Adviser Recommended Monthly cover required Waiting period Yes Yes Accrued sick leave days days Long service / annual leave days days Recommended waiting period and reason Benefit period Expected Retirement Date Age Age Maximum available based on occupation Age Age OR Income protection If you waived the option to obtain a insurance needs analysis, the amount requested may not be appropriate to meet your needs. Recommended benefit period and reason Client 1 Client 2 Client requested cover I.P. I.P. How was this amount determined by the client? Notes Your Fact Find / Page 31

32 Insurance policy features Please indicate which policy features are important to you Are there any definitions or benefits that you would value in an insurance policy? Would you be prepared to pay a higher fee in order to have access to these definitions or benefits? Strategies to implement now Now that we have set specific and measurable goals, we will outline how these will be addressed and the strategies we agreed to. Goals to be addressed in the future Goal Reason for not addressing now Risks of not addressing now There are some goals that will not be addressed at this time. These are still important and we agree these will be addressed at future reviews. Notes Your Fact Find / Page 32

33 Other goals you would like to achieve Goals Goal Timeframe Priority In the preceding sections we addressed your investment and insurance goals. In this section we make sure that we convert the other things that you would like to achieve into specific and measurable goals. Strategies to implement now Now that we have set specific and measurable goals, we will outline how these will be addressed and the strategies we agreed to. Goals to be addressed in the future Goal Reason for not addressing now Risks of not addressing now There are some goals that will not be addressed at this time. These are still important and we agree these will be addressed at future reviews. Advice areas that are not in scope What was excluded Reason for not including Risks of not providing advice in this area Your Fact Find / Page 33

34 Determining your investment strategy Earlier we talked about what you would like to achieve from our discussion your goals. With these in mind, we need to work out how to invest your money to give you the best chance of meeting your goals. To do this we take into account: your timeframe for investing based on your goals; and your attitude to investment risk. The first step is to group your goals according to your desired timeframe for achieving them. We then discuss the types of investments, including your existing investments that may be suitable to achieve your goals. It is important you are aware of investment risks and how they apply to the investment strategy we recommend for you. Finally we will look at strategies that can be used to reduce the risks of investing such as diversifying the assets in your portfolio and the options available to protect your capital. Shorter term goals Longer term goals Timeframe 0-5 years 5+ years Typical goals Suggested assets Emergency savings Holiday New car Home deposit/minor renovations Wedding costs Emphasis on income earning investments that generally provides a reliable and stable income but with little or no capital growth returns. Cash: pays interest in return for money deposited e.g. bank savings, cash management accounts. Fixed interest: you effectively lend money to a company or institution and receive income or interest repayments in return e.g. government bonds, mortgage funds. A smaller weighting, if any, of property and shares Retirement plans superannuation Creating or building non super savings Investment property/holiday home Major home renovations Business venture Emphasis on capital growth investments that are generally considered risky because their value can fluctuate regularly. Property: is purchased directly through a real estate agent or indirectly through listed property funds. The investment return includes capital growth and rental income. Shares: represent a part ownership in an Australian or overseas company. The investment return includes capital growth and company profit distributions (dividends). A smaller weighting, if any, of cash and fixed interest The value is expected to be relatively stable over the short term. With cash investments your money is there if or when you need it. Some fixed interest investments carry a lot of risk. You should only invest with companies or products that have received a high credit rating. The value is expected to move in value, both up and down, over the short term, but is likely to achieve stronger returns over the long term. Due to these fluctuations in value there is a risk that your money won t be worth as much when you need it. Risk It is important to separate risk from volatilty because they are quite different. When we talk about risk, we mean the chance you will lose money permanently or not achieve your financial goals. Volatility means the value of the investment changes more sharply and more frequently. The key is to not put yourself in a position where you sell your investments at the wrong time (when their value is low). You will generally lose money when you don t let your investments run their course or when you can no longer tolerate the degree of volatility and sell your investment in a panic. It is important to have less volatile investment returns when you only have a short timeframe to invest. Hold volatile investments over the longer term to increase the chance of achieving higher returns on your money. Choosing the right asset group to meet your needs An important point to understand when choosing the right investments for your needs is that no single asset group is likely to meet all of your needs. Investing all of your money into a single asset group can be a risky strategy as returns tend to occur in cycles. Consider the following table which shows annual returns from each of the main investment types over the last 20 years. It shows: Investment returns vary from year to year High investment returns can be followed with low, or negative, returns Low, or negative, investment returns can be followed with high returns Last year s investment performance is not a good indicator of next year s performance. Your Fact Find / Page 34

35 Returns for the 20 years to December 2013 Important Information The returns do not include allowances for fees or taxation Source: Datastream Cash Australian Fixed Interest International Fixed Interest Listed Property Australian Shares International Shares Dec % -4.7% -2.7% -5.6% -8.8% -7.6% Dec % 18.7% 20.1% 12.7% 21.1% 26.7% Dec % 11.9% 10.7% 14.5% 14.4% 6.7% Dec % 12.2% 10.5% 20.3% 12.7% 42.2% Dec % 9.5% 10.4% 18.0% 9.8% 32.8% Dec % -1.2% 0.8% -5.0% 18.7% 17.6% Dec % 12.0% 10.1% 17.8% 6.4% 2.5% Dec % 5.5% 7.4% 14.6% 10.4% -9.6% Dec % 8.8% 11.2% 11.8% -8.8% -27.1% Dec % 3.0% 5.6% 8.8% 14.6% -0.3% Dec % 7.0% 9.0% 32.0% 28.0% 10.4% Dec % 5.8% 7.5% 12.5% 22.8% 17.4% Dec % 3.1% 3.9% 34.0% 24.2% 12.0% Dec % 3.5% 7.0% -8.4% 16.1% -2.1% Dec % 14.9% 13.4% -54.0% -38.4% -24.5% Dec % 1.7% 3.9% 7.9% 37.0% 0.3% Dec % 6.0% 7.9% 0.4% 1.6% -1.5% Dec % 11.4% 10.6% -1.5% -10.5% -4.8% Dec % 7.7% 8.3% 33.0% 20.3% 14.9% Dec 2013 Average Return 5.61% 7.66% 8.52% 9.70% 11.59% 6.52% Best performing asset group Worst performing asset group It is not possible to predict the timing of negative returns; or in which asset group they will occur. The timing of negative returns can have a devastating effect on your ability to meet your goals. Especially if they occur when you need to draw on your savings. For example, if you require 500,000 to achieve your retirement goals, and in the year of your retirement, your superannuation fund falls in value from 470,000 to 376,000, a fall of 20%, this will have a significant impact on your retirement goals. Choose a blend of asset to minimise risk Investment strategy options We recommend you blend or diversify your money across a range of asset groups to reduce the volatility of your investment. By holding assets that perform differently to each other, losses made on some investments can be offset in part by gains on others. The investment strategy selected for your short and long term goals must take into account the return required from your investment to fund your goals. We use six different investment strategies, which blend income earning investments and growth assets, to determine an asset allocation that could potentially deliver the required return. The longer the timeframe for investing, the greater recommended exposure to growth assets. Suitable for short term goals Suitable for long term goals Cash / Term Deposit 30% Growth Assets 50% Growth Assets 70% Growth Assets 85% Growth Assets 99% Growth Assets Changing from longterm to short-term Protecting your capital Over time your short-term goals will be achieved and the timeframe for achieving your long-term goals will shorten. At your review, we will assess whether your long-term goals are now short-term goals and re-assess your attitude to investment risk and whether your investments remain appropriate. To achieve your short and long term goals, you may need to adopt an investment strategy with higher levels of volatility than you are comfortable with. But it would not be appropriate if it causes you to worry so much that you cannot sleep at night. This may result in a panic sale of assets at exactly the wrong time. You could consider: Investing in a lower risk investment strategy. This will reduce the levels of volatility and risk in your portfolio however; it may not be possible to achieve the returns you need to meet all of your goals. Investing in a product with some type of capital or income guarantee. This will provide your future with more certainty however; you need to weigh up the costs of these products with the benefits they provide. Capital guarantees may apply to your savings in a bank account or term deposit, or you can purchase a guarantee through a structured protected product. Your Fact Find / Page 35

36 Capital guaranteed and protected investments Types of guaranteed investments The guaranteed benefits offered by guaranteed, secure, protected or safe investments is only a strong as the financial security of the company offering the product. Savings Accounts and Term Deposits Savings Accounts: Bank accounts provide you with a safe place to keep your money. Banks are heavily regulated and standards are in place to ensure your deposits are as safe as possible and your capital is there when you need it. Term Deposits: Just like a savings account, term deposits also offer you a safe place to keep your money. In addition, the bank also offers you interest, paid during the term of the deposit. Federal Government Guarantee: The Federal Government is currently offering a guarantee on deposits up to 250,000, through the Financial Claims Scheme (FCS). There are a wide range of deposit accounts covered by the FCS including savings and term deposits, cash management accounts, farm management deposits and mortgage offset accounts. Please refer to for a full list of approved deposit-taking institutions. Things to consider Low returns: Although the value of your savings is safe, the long term returns are often lower than from other investments. Time value of money (inflation): Over time, the real value of your money decreases. This is called inflation. If you rely on the interest earned from your investment, over time the value of your investment and the interest you receive will not have the same purchasing power and may be insufficient to meet your income needs. Access to funds/automatic rollovers: Term deposits require you to invest for a minimum investment period and the provider may charge you a fee to access your funds early. You also need to watch out for automatic rollovers when the term expires. You may not want to tie up your funds for another term, or the new interest rate may be lower than the original rate. Protected products The guarantee provided by these products is not the same as putting money in a bank account. Some products allow you to have exposure to growth assets on the investment market with the option of purchasing a guarantee against losing your capital or running out of income during retirement. Generally, protected products offer you the ability to enjoy investment returns in good economic times while protecting you from losing your money if investment markets fall in value. Things to consider Cost: Just like you pay insurance premiums, there are costs associated with purchasing the security that protected products offer. Protected products do not necessarily mean you will receive a higher return than standard investment products, especially over the medium to longer term. You need to consider why a protected benefit is important to you and weigh up the cost against the benefits that the product offers. Early access to funds: Most capital guaranteed or protected products require you to invest for a minimum investment period and fees can apply if you need to access your funds earlier than intended. The guarantee might not apply unless you hold the investment for the full term. If you access your funds early, or you die before the end of the term, you might get back less than you originally invested. Understand what you are purchasing: Capital guaranteed or protected products are complex investment products. No two products are alike. The guarantee or protection option can be achieved by structuring the product in a variety of ways ensure you take the time to understand the features of the product and any terms and conditions that apply. What are your main concerns regarding investing your money? Q 1. Have you been comfortable in the past with a reduction in your investment capital due to poor market returns? YES / NO Q 2. Are you comfortable with the potential for future loss/reduction in your investment capital due to poor market returns? Yes Go to Q 3. No i. What alternative investment strategy would you consider to avoid these losses? ii. Would you prefer to remain fully invested in growth assets of your choice regardless of market conditions? YES / NO Q 3. Would you be prepared to pay a fee to protect your initial capital and future growth from investment market volatility? YES / NO If you would like to learn more about capital protected products we recommend you read, Get the facts: Capital Guaranteed or Protected Investments. This is available from or we can provide a copy on request. Your Fact Find / Page 36

37 Expected returns should be used as a guide only and are not a guarantee of future performance. As at April % growth assets (cash / term deposit) Estimated Funds Asset Cash (cash) Allocation 100% Volatility Very low Australian fixed interest (term deposit) 100% International fixed interest 0% Property 0% Australian shares 0% International shares 0% Returns Expected return on investment % 30% growth assets Estimated Funds Asset Allocation Volatility Low Cash 20% Australian fixed interest International fixed interest 30% 20% Property 8% Australian shares 14% International shares 8% Returns 1 Projected return per annum (historical) 5.5% 2 Extreme return range -6% to 17% 3 Normal return range 2% to 9% Probability of a positive return (over 1 year) 93% Minimum suggested investment timeframe 2 years Investment objective over investment timeframe CPI + 1% Probability of meeting investment objective 78% 1 Based on after wholesale fee returns and 1% active outperformance in shares. Before tax and administration costs. Based on historical returns. 2 99% of results are expected to fall in this range. 3 2/3 of annual results are expected to fall in this range. Your Fact Find / Page 37

38 50% growth assets Estimated Funds Asset Allocation Volatility Medium Cash 10% Australian fixed interest International fixed interest 23% 17% Property 10% Australian shares 22% International shares 18% Returns 1 Projected return per annum (historical) 6.4% 2 Extreme return range -11% to 23% 3 Normal return range 1% to 12% Probability of a positive return (over 1 year) 87% Minimum suggested investment timeframe 3 years Investment objective over investment timeframe CPI + 2% Probability of meeting investment objective 71% 70% growth assets Estimated Funds Asset Allocation Volatility Medium/High Cash 4% Australian fixed interest International fixed interest 15% 11% Property 10% Australian shares 34% International shares 26% Returns 1 Projected return per annum (historical) 7.3% 2 Extreme return range -16% to 31% 3 Normal return range -1% to 15% Probability of a positive return (over 1 year) 82% Minimum suggested investment timeframe 4 years Investment objective over investment timeframe CPI + 3% Probability of meeting investment objective 67% 1 Based on after wholesale fee returns and 1% active outperformance in shares. Before tax and administration costs. Based on historical returns. 2 99% of results are expected to fall in this range 3 2/3 of annual results are expected to fall in this range. Your Fact Find / Page 38

39 85% growth assets Estimated Funds Asset Allocation Volatility High Cash 2% Australian fixed interest International fixed interest 8% 5% Property 10% Australian shares 43% International shares 32% Returns 1 Projected return per annum 7.9% 2 Extreme return range -20% to 36% 3 Normal return range -1% to 17% Probability of a positive return (over 1 year) 80% Minimum suggested investment timeframe 5 years Investment objective over investment timeframe CPI + 4% Probability of meeting investment objective 63% 99% growth assets Estimated Funds Asset Allocation Volatility Very high Cash 1% Australian fixed interest 0% Fixed interest 0% Property 5% Australian shares 45% International shares 49% Returns 1 Projected return per annum 8.6% 2 Extreme return range -24% to 41% 3 Normal return range -2% to 19% Probability of a positive return (over 1 year) 78% Minimum recommended investment timeframe 9 years Investment objective over investment timeframe CPI + 5% Probability of meeting investment objective 62% 1 Based on after wholesale fee returns and 1% active outperformance in shares. Before tax and administration costs. Based on historical returns. 2 99% of results are expected to fall in this range. 3 2/3 of annual results are expected to fall in this range. Your Fact Find / Page 39

40 Adviser to complete Client Partner Joint Funds available Shorter term goals Agreed Investment Strategy Capital protection option required ( portion) Yes Yes Yes Reason for selection Funds available Longer term goals Agreed Investment Strategy Capital protection option required ( portion) Yes Yes Yes Reason for selection Client Sign Off You should not proceed with any advice unless you understand: all investments carry risk and the different asset groups carry different levels of risk, cash and fixed interest are generally safer and more suitable for short term goals, however in the long term, returns may not be as high as growth assets and there is a risk your capital will not grow in pace with inflation, property and shares offer a greater opportunity for capital growth and over the long term, the total return can exceed the negative effects of inflation, increasing your investment exposure to capital growth assets, property and shares, increases the risk of experiencing negative returns in the short term, a longer term perspective must be taken when investing in property and shares due to the inevitable ups and downs of these markets, the timing of negative returns is unknown and may occur when you need access to your money thereby affecting the ability to meet your goals, if you need access to your investments in a hurry and they are investment in property and shares, you may be forced to sell at a loss. If you want to understand more about the risks of investing please read Investing Between The Flags A Practical Guide To Investing created by ASIC before you proceed with our advice. It is available from or we can provide a copy on request. Capital guarantees Before you invest in capital guarantee investments make sure you understand how the investment and capital protection is structured. Based on your understanding of investment risk, are you comfortable to accept the agreed investment strategy for your short and long term goals? Yes [name client 1] [name client 2] Your Fact Find / Page 40

41 Your acknowledgement Before we proceed with the preparation of your financial plan, please take a moment to read the following information: Duty of care Your information recorded in this fact find will be used to prepare your financial plan. Discussions held during this fact finding meeting do not constitute personal advice and should not be implemented before receiving the financial plan we will prepare for you. I/we understand that I have not yet been provided with personal advice, and agree not to implement any strategies that have been discussed until they have been outlined in an advice document. It is important you provide me with detailed and accurate information so I can provide you with appropriate recommendations. Charter Financial Planning will not accept liability for recommendations based on inaccurate or incomplete information you supply. The following sections of this fact find have been completed: your investment goals determining your investment strategy your insurance goals Protecting your privacy The information that you provide will be kept on file at our business. You are entitled to request reasonable access to this information. We will not pass your information to other parties for any purposes other than those for which you have been informed. Your information is only disclosed to other parties as is necessary for us to provide our services to you and/or where we are required to by the law. This may include fund managers, insurance companies, other Licensees and related entities. Your information may be disclosed to service providers and specialist advisers who have been contracted to provide us with administrative, financial, insurance, research or other services. Your privacy is important to us. Please refer to the Charter Financial Planning Privacy Statement, which is available on request, for more information about the collection and use of your personal information. The information provided in this fact find is a true and accurate record of my current personal and financial position. I/we am/are not aware of any other information that you would need to be aware of before providing financial advice. I/we give permission for the information supplied in this fact find to be used for the preparation of my/our financial plan. I/we give permission for the information supplied in this fact find to be provided to relevant third parties. Other information Financial Services Guide I have received or have been provided with access to a Financial Services Guide version Account and reference numbers I/We authorise Sydney Financial Planning to retain and store my/our account numbers and/or Centrelink number for the purpose of providing me with initial and ongoing financial planning advice, Tax File Number ( TFN ) The Income Tax Assessment Act 1936 (Cth), Taxation Administration Act 1953 (Cth) and the TFN Guidelines 2011 issued under the Privacy Act 1988 (Cth) strictly regulates the collection, use, disclosure, storage, security and destruction of TFNs. Your TFN will be used for lawful purposes only and how it can be used may change in the future as a result of legislative changes. Your TFN is confidential and you should be aware of the following before you decide to provide it: As your financial planner, we and Charter Financial Planning Limited ( Charter Financial Planning ) are permitted to handle your TFN when acting on your behalf in connection with your investments. This includes the use of your TFN for reviewing and managing your current and future applications and other business dealings, as well as for officers of Charter Financial Planning to have access to your TFN in conducting normal activities associated with your financial planner s appointment as an Authorised Representative of Charter Financial Planning. You may choose not to quote your TFN, or claim an exemption; however a higher rate of tax may then be applied to your investment returns. The consequences of not quoting your TFN may change in the future as a result of legislative changes. It is not an offence to not quote your TFN. We and Charter Financial Planning are required by law to properly safeguard your TFN until we no longer require the information. Your TFN will be securely destroyed or permanently de-identified after we and/or Charter Financial Planning no longer require it. In the event that your financial planner leaves Charter Financial Planning, with Charter Financial Planning s approval your file and TFN information may be transferred to another Charter Financial Planning financial planner. Your Fact Find / Page 41