Individual Financial Planning Case Study Example | Topics and Well Written Essays - 3000 words

Individual Financial Planning - Case ingest ExampleThey expect to live for the next 25 years. Their estimated capital at the time of screwment exit be $ 474,780.44. My advice is to invest this capital in the ratio of 60 40 in investment identify bonds and high dividend payout equity stocks. That means 60% or $ 284,868.264 should be invested in investment grade bonds. 40% or $ 189,912.176 should be invested in equity stocks. The annual yield of investment grade bonds estimated by me is 6.6% (based on historic yields). The annual returns of equity stocks estimated by me (based on historical returns) are 18%. This investment leave alone give the clients an annual income of $ $ 52,985.4971 per annum and fulfill their investment objectives. Why is my advice appropriate? My advice is appropriate for you because i) It will enable you to extend to your investment objective of earning a yearly income of $ 50,000 in the years after your retirement. ii) It is within your risk preferences . iii) It will create a diversified portfolio. iv) It also leaves aside capital for the clients to pursue their hobbies of camping and traveling. Risks in my advice The important disadvantages of my investment advice are 1) The actual returns on the investments in equity stocks may be different from the estimated ones. This is delinquent to the inherent market risks. 2) The estimated yield on investment grade bonds may be different from the historical yields. What else do you need to know? ( earnings and Commission) Why should you trust me? I have extensive ascertain in financial planning. Over the years I have acquired for myself a reputation of ethical paid behavior. I have supported my every advice in this statement with clear and transparent reasons. Based on my track record, my professional qualifications and competence, I see no reason why you should not trust me. Fee & Commission My fee for preparing this advice is $ 7000. In case the clients decide to follow my advice a nd allow me to manage their investment portfolio, I will charge a management fee of 1% of the portfolio size, per annum. Section 1 Important randomness about you Your goals and objectives Investment objectives of the clients An after-tax income of $ 50,000 per annum after retirement. The clients are spouses. Their current age is 50 years. Both of them intend to retire at the age of 60. They expect to live till the age of 85. The clients also want to have introduction to some initial capital so that they can pursue their hobbies of camping and traveling after their retirement years Your personal information Client and Spouse Item Client Spouse/Partner style Mr Mrs Surname Halfpenny Halfpenny Given & preferred names Robert (Bob) Dina (Din) Home address 12 normal St, Urbania, NSW Ditto Business address - - Contact phone 02 49 888444 (H) - Age 50 yrs 50 yrs stag party Yes No ? Yes No ? Expected retirement age 60 yrs 60 yrs Your financial information practice Details, Income & Expe nditure Employment Details Item Client Spouse/Partner Occupation Production executive program Astrologer Employment Status Self employed ? Employee Self employed ? Employee Not employed hireling Not employed Pensioner ? Permanent Part-time Permanent ? Part-time day-by-day Contractor Casual Contractor Business Status Sole trader Partnership Sole trader Partnership underground co. Trust Private co. Trust Other information, notes, questions Dina has worked within a clairvoyant practice for a fewer years now and her pay is $14,500