• Assume that your clients are a married couple in their mid twenties with no children and no plans for children
• Estimate the risk profile for each client (you are encouraged to access an online risk profile to estimate this)
• Assume the couple are fully employed earning between $80,000 and $150,000 each and create an employment story for each
• Assume that they receive compulsory superannuation contributions at the rate of 9.50% p.a. of gross salary.
• Assume that their superannuation plans include an insurance policy each with a sum insured equal to five times their salaries (you will need to estimate the cost of this insurance)
• Assume that they have some assets in addition to their super including a car, some cash in the bank and a couple of small investments (but they haven’t yet bought a house).
• Assume they have significant credit card debt that they are struggling to repay.
• Assume a reasonable level of living expenses (including rent).
• You should adopt the 17/18 ATO tax rules. Average inflation is 3% p.a.
• Estimate reasonable requirements for retirement income
• Estimate expected returns for all assets, interest rates on loans or mortgages and costs of any rent, insurance or other items.
• Estimate correlations between any assets.
• You will likely need to invent a couple of scenarios that will help to showcase your complete understanding of the material covered in this subject and your ability to critically analyse.