Superannuation in Australia

Summer Internship
Report
On
STATEMENT OF ADVICE FOR A
CLIENT
Submitted by:
Bilal Arafaat
A3104610008
1
COMMERCE AND FINANCE
AMITY COLLEGE OF
B.Com (Hons.) (2010-13)
Under the Supervision of
Dr. Puja Singhal

AMITY COLLEGE OF COMMERCE AND FINANCE
AMITY UNIVERSITY UTTAR PRADESH
SECTOR 125, NOIDA - 201303, UTTAR PRADESH,
INDIA
AMITY UNIVERSITY UTTAR PRADESH
AMITY COLLEGE OF COMMERCE AND FINANCE
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AMITY COLLEGE OF
DECLALRATION
I, Bilal Arafaat student of B.Com (Hons.) from
Amity College of Commerce and Finance, Amity
University Uttar Pradesh hereby declare that I
have
completed
Summer
Internship
on
STATEMENT OF ADVICE FOR A CLIENT FOR
ZAMS STRATEGIC SOLUTIONS PTY LTD as part
of the course requirement.
I further declare that the information presented in
this project is true and original to the best of my
knowledge.
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AMITY COLLEGE OF
Bilal Arafaat
Date:
Enrol. No: A3104610008
B.Com (Hons.) (2010-2013)
CERTIFICATE
I hereby certify that BILAL ARAFAAT students of

B.COM (HONS.) at Amity College of Commerce
and Finance, Amity University Uttar Pradesh has
completed Summer Internship on STATEMENT
OF ADVICE FOR A CLIENT FOR ZAMS
STRATEGIC SOLUTIONS PTY LTD, under my
guidance.
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AMITY COLLEGE OF
Ms. Puja Singhal

Date:
Acknowledgement
First of all I would like to present this report to Dr.

Shipra Maitra, Head and Director, Amity College
of Commerce and Finance, who has been an
inspiration to me throughout the academic year. I
would like to thanks Dr. Puja Singhal (Faculty
Guide)
for
her
constant
enthusiastic
encouragement and valuable suggestions without
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which this project would not been successfully

completed. I would like to extend my gratitude to
Mr. Zahid Jamil and Ms. Mona Zahid
Authorized Representatives of ZAMS STRATEGIC
SOLUTIONS PTY LTD, Australia for all the facilities
without which the compilation of the entire
project would have been impossible.
Bilal Arafaat
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TABLE OF CONTENTS
S.No.
Page
Particulars
1.
Introduction
. 8
2.
About the
Company.. 9
3.
Data Analysis & Interpretation
.. 15
4.
Conclusion
75
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INTRODUCTION
In this project, I have prepared a statement
advice for a client representing Zams Strategic
Solutions Pty Ltd. In preparing the advice I have
covered post retirement planning for my client
Mark and his spouse Vicky. Keeping in mind their
goals that are Investment stabilization and
regular income flow after the retirement.
As they have existing superannuation plan, so I
have to provide them with plans best suiting
them covering their existing superannuation
plans for meeting their goals.
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COMPANY PROFILE
Zams Strategic Solutions Pty Ltd, corporate
authorised representative (CAR), number 252526,
trading as Zams Strategic Solutions Pty Ltd, is
authorised to provide financial services on behalf of
AXA Financial Planning. We have a dedicated team
of advisers, paraplanners and support staff to help
deliver quality financial planning services to you.
Attached to this document is an adviser profile. The
adviser profile provides information about your
adviser - their contact details, qualifications,
experience and any memberships they may hold. It
also outlines the strategies and products your
adviser can provide advice on. We aim to provide
personalised and responsible advice suited to your
objectives and believe that sound advice and
planning is the key to improving your financial
position. We undertake continuous professional
development and undertake training programs so
we are up to date with legislative changes to
superannuation, investment, social security and tax
environments. We have access to technical, risk
and investment research professionals who provide
us with additional analysis on strategies and
products that become available as a result of these
changes. Our financial advisers will help you
determine your goals and weigh up different
investment strategies to achieve them. Most
importantly, we turn your thoughts into action. There
are no secret formulas to achieving financial
security. We work with you to get the basics right
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and ensure you have a plan to achieve your goals

over time. Everyone is different, with different
circumstances, needs and goals. We treat every
client as an individual, but follow a defined financial
planning process, to make sure you know what to
expect from us.
Identifying where you want to be We help you
identify your financial and lifestyle goals and explain
the services we offer to help you achieve them. The
type of advice you need could depend on your life
stage, the amount of money you want to invest and
the complexity of your affairs. We will help you to
identify the range of issues that need to be
addressed to meet your goals. You can then decide
whether you want our advice to meet a single need
or a broad range of issues.
Considering opportunities and risks Good
personal advice starts with having an understanding
of your current situation. We take a close look at
your current financial situation assets, debts,
income, expenses and insurance, and explore the
options you could use to reach your goals.
Business profile
Bridging the gap

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Based on the research we have conducted, we will

recommend a strategy to bridge the gap between where
you are now and where you want to be.
Bringing your plan to life
We work closely with you to implement your financial
plan. We help you to complete any necessary paperwork
and are available to attend meetings with your
accountant, solicitor and general insurer so that your
strategy is implemented efficiently.
Staying on track with regular ongoing advice

Time goes on and circumstances and needs change.
The final step in our advice process ensures your
financial plan remains on track, by providing you with
regular ongoing advice.
We design an ongoing service programme to ensure
your plan remains up to date as your life changes and so
you can obtain the benefits of ongoing reliable advice.
Sometimes, life takes us in unplanned directions. When
you need a little extra help on top of our initial or ongoing
advice, just ask us to provide you with some additional
advice. We are there to help you whatever the
occasion.
AXA Financial Planning maintains an approved product
list, containing financial products that have been
researched by a number of external research houses.
, risks and the fees you pay the product provider to
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professionally manage your investment or insurance.

You should read any warnings contained in your financial
plan or the PDS carefully before making any decision
relating to a financial strategy or product.
You can contact your adviser directly with
instructions relating to your financial products.
any
Initial commission deducted from your investment cont

Your advice fees will be calculated at the time we provide
you with personal advice. Your SOA will outline the
advice fees and any commission inclusive of GST.
About AXA Financial Planning
Relationships and associates

Your adviser can provide advice on products from a wide
range of financial product providers, some of which are
part of the AMP Group and as such are affiliated with
AXA Financial Planning,
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26 September, 2016
Dr. Mark Apton

Mrs. Vicky Apton
43 Hampden Street,
Liverpool
Dear,
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Dr. Mark Apton & Mrs.Vicky Apton

It was a pleasure to meet with you to explore ways that I
can assist you in planning your financial affairs.
Please find enclosed the Financial Plan we have
prepared for you, setting out my recommendations to
help you achieve your financial goals.
The Financial Plan is split into two parts, and must be
read as a whole document:
Our advice: Summarises your current situation, your
goals, how we recommend you meet your goals, the
benefits of our initial and ongoing advice and a
summary of costs.
Detailed section: Includes all the information you
need to gain a thorough understanding of our advice.
This section includes detailed investment and
insurance recommendations, supporting calculations,
fact sheets, implementation steps and forms, and
advice agreements.
I will contact you in the coming week to discuss the
financial plan with you and answer any questions you
may have.
I look forward to working closely with you in the coming
years.
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Yours sincerely
Bilal Arafaat
Authorised Representative of
AXA Financial Planning Limited
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DATA ANALYSIS &

INTERPRETATION
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The information you have provided us forms the

basis of our advice. t is important that you let us
know as soon as possible if our records are
incorrect.
Personal
details
Mark
Vicky
Full name
Mr. Mark Apton
Mrs. Vicky Apton
9/01/1941
15/03/1947
69
64
Married
Married
Health
Good
Good
Existing health
conditions
None
None
No
No
Date of birth
Age last birthday
Marital status
Smoker
Principal place
of residence
43 Hampden Street, Liverpool
Home owner
Employment
details
Occupation
Employer name
Employment
status
Income
Yes
Mark
Vicky
Doctor
Office Manager
Ruswell Pty Ltd
Ruswell Pty Ltd
Employed by
own company
Employed by
own company
$200,000
$40,000
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Personal
details
Mark
Vicky
Full name
Mr. Mark Apton
Mrs. Vicky Apton
65
65
Expected
retirement age
Assets &
Liabilities
Owner
Family Home
Market value
Joint
$900,000
Ruswell
$500,000
Investment
Property
Joint
$350,000
Auburn Shop
Joint
$700,000
Surgery
Cars/Contents
$200,000
Marks superannuation details

Fund
name
Sala Fu
Sup
Emp Pers ry nd
er
loyer onal sacr va
sala
cont cont ifice lu
ry
cont
e
Pres
Taxerve
free
d
amo
amo
unt
unt
Summit
$20
0,00
0
$6
18
,6
98
$61
8,69
8
Sup Em Per Sala Fun

er ploy son ry
d
sala er
al sacr val
Pres Taxerve free

d amo
Vickys superannuation details

Fund
name
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ry cont cont
ifice
cont
ue
amo
unt
unt
$32
$32
Summit
8,4
8,43
38
8
You have indicated that you draw wages as per
companys profits and your needs. You receive additional
income from rents of your properties. You did not wish to
disclose further details about your income and expenses.
Dr. Apton, you are now well into pension age, however
you still work part time to keep yourself engaged. We
recommend that you transfer most of the superannuation
monies into a pension fund. You told us that you do not
need any pension withdrawal at this stage. However, you
will have to withdraw a minimum pension from your
pension fund. We will keep your superannuation account
open. This will help you in contributing extra money into
superannuation if need be.
Vicky, you are now 64 years old and thus any pension
drawn will be tax free. You are also working part time in
your husbands medical practice. You told us that you do
not need any pension withdrawal at this stage. However,
you will have to withdraw a minimum pension from your
pension fund. We will keep your superannuation account
open. This will help you in contributing extra money into
superannuation if need be.
You have also advised us that:
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Your children are grown up and you do not have any

financial dependants.
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One of the most important steps of the financial planning

process is mapping out a long term strategy that will help
you achieve your goals. We are therefore pleased to
present our advice below, which summarises your
situation and details the recommended strategy we
believe will be most suitable for you.
Your goals
During our meeting we undertook a factfinding process to help define your goals and
objectives.
Scope of advice
Our advice will focus on solutions that
address the goals and issues that are
important to you.
Goals to be
addressed
You would like to have an income of about

$40,000 each year to meet your living
expenses in retirement.
You may like to retire in next few years,
although you wish to continue to some part
time work as long as possible.
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Areas not
addressed
We have agreed to not address the following

areas:
Insurance, estate planning, investment for
wealth creation, general insurance
Will you meet these goals?
Assuming that you continue as you are, we
have determined that you will meet all of your
goals.
Your
retirement
savings?
You have accumulated sufficient funds to

support yourself in retirement.
You already have a total of $943,400 in
superannuation saving between two of you.
Our advice
Outlined below is our recommended
strategy and why it is suitable for you.
We considered alternative strategies and
products
when
we
prepared
our
recommendations. If you wish to receive a
copy of these alternatives, please contact us.
Your
investment
portfolio
We have reviewed your investment

portfolio. No changes are required. It
remains appropriate for your goals and
timeframes.
Mark, set up
an account
We recommend you set up a pension

account that will pay you a regular income
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based
pension using
$580,000
automatically. This type of account is called

an account based pension.
We recommend you transfer $580,000
from your superannuation into an allocated
pension.
The main benefit of this strategy is that all
earnings and capital gains within the
pension environment are tax free, whereas
earnings and growth in super are taxed at
a maximum of 15%.
You will still maintain your superannuation
account for the balance of the monies and
intend to contribute to it as per advice from
your accountant and within limits set by the
government.
Based on your pension amount, the
minimum pension you can receive is
$21,750 in 2012-2013 and $29,000 in
2014. You indicated that you will draw only
minimum income as long as you are
working part time.
Based on current criteria, you would not
qualify for any Centrelink benefit as your
assets exceed the maximum limit.
As you are over 60 years of age, your
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pension income will be tax free.

Vicky, set up
an account
based
pension using
$280,00
We recommend you set up a super

account that will pay you a regular income
automatically. This type of account is
called an account based pension.
We recommend you transfer $280,000
from your superannuation into an allocated
pension.
The main benefit of this strategy is that all
earnings and capital gains within the
pension environment are tax free, whereas
earnings and growth in super are taxed at
a maximum of 15%.
As you are still working part time and you
are under 65 years old, you will set up a
non-commutable
allocated
pension
(NCAP). An NCAP provides a flexible and
tax-effective way for you to access your
superannuation benefits from preservation
age without having to choose between fulltime employment and full time retirement.
Based on your pension amount, the
minimum pension you can receive is $8400
in 2011-2012 and $14,000 in 2013. You
indicated that you will draw only minimum
income as long as you are working part
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time.
You will still maintain your superannuation
account for the balance of the monies and
intend to contribute to it as per advice from
your accountant and within limits set by the
government.
Based on current criteria, you would not
qualify for any Centrelink benefit as your
assets exceed the maximum limit.
As you are over 60 years of age, your
pension income will be tax free.
Make sure
your spouse
receives your
income when
you die
We recommend you set up your pension

as a reversionary pension so your spouse
receives the income payments if you die.
This gives you certainty that your spouse
will continue to receive enough income to
meet his/her living expenses. This should
occur quickly as the money does not form
part of your estate.
We recommend you set up a binding
nomination on your pension account.
Make sure
your pension
passes to
your spouse
when you die
You will have peace of mind, that legally,

the fund must pay your pension benefits to
your spouse when you die. It will also
occur quickly as it does not form part of
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your estate.
You need to confirm your selection with the
fund every 3 years, even if your nomination
does not change.
Your
investment
strategy
You have financial goals you wish to achieve

over the short and long term. We have
developed investment strategies designed to
match these timeframes, which are listed
below.
For more detail, refer to the Investment
section of this financial plan.
Long term for

Mark and
Vicky
Fixed Interest only allocation

Your long term investments will be invested
entirely in fixed interest. This should pay you
a higher interest rate than if you left the
money in a cash account. You will still be
able to access this money at short notice,
however you may forfeit part (or all) of the
interest if you do so.
Keeping you on track
It takes more than a financial plan and a
single meeting to meet your goals.
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Your current situation, goals and strategy

need to be reviewed regularly to keep you on
track, because its difficult to predict if and
when things may change.
It is equally as hard to predict the effect these
changes will have on your goals and our
advice.
Apart from unexpected changes, there are
particular areas of our advice that will need to
be continually maintained.
The level of
your
retirement
income
The amount you receive from your

allocated pension is linked to its value. If
the value falls, the income paid to you the
following year will reduce. You may need
to review this each year to make sure you
continue to meet your everyday expenses.
Unplanned
expenses
If unplanned expenses arise, we can help

you withdraw money from your account
based pension.
Your
investments
When investing there is a chance that

the returns wont meet your needs or that
your savings reduce in value just when
you plan to withdraw them.
How much your savings go up and down
over the short to medium term depends
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on which asset class (such as shares,

property, fixed interest) your savings are
invested in.
Different asset classes
perform well at different times. To make
sure that your investments are still
suitable, you will need to review your
portfolio on a regular basis.
We invest your money in assets that
match the timeframe of when you need
the money. The reference section of this
plan explains how we recommend you
invest your money.
Ongoing
service
Please refer to Ongoing Services

Provided in the detailed section to see
what ongoing services we will provide as
part of our agreement.
Keep in touch
Dont feel like you need to wait for a

specific review to contact us.
You should contact our office if there is
anything that you think may impact your
financial plan.
Other things to consider
In addition to our advice above, there
are other areas that may need your
attention.
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The
appropriateness
of our advice
Our
advice
is
based
on
our
understanding
of
your
personal
circumstances. If the information you
gave us was incomplete or possibly
inaccurate, we cant be completely sure
that our advice is appropriate.
Before implementing our advice you
need to consider the appropriateness of
our advice for you.
Meet with a
solicitor to
review your
Wills and other
estate planning
matters
We recommend you meet with a solicitor

to discuss your estate planning needs, in
particular:
Your Wills
Using a testamentary trust in your Will
Establishing an Enduring Power of
Attorney
A solicitor can make sure that your
wishes can be carried out if you are
unable to look after your own affairs or
die.
What does this advice cost?
Financial planning costs can be separated
into advice fees and product costs.
The advice fees are payable by you to
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research, prepare, implement and maintain

this financial plan.
You pay product costs from your
investment
balance
and
insurance
premiums to the provider to manage and
administer
your
investments
and
insurance.
Advice fees
This section summarises the advice fees

you pay to us.
More information about the advice fees and
commission we receive is located in Advice
Fees.
Initial advice fees
The fee to research, prepare
implement this financial plan is $0.
and
Ongoing advice fees

Our ongoing advice will cost 0.35% p.a.
($3010 p.a.) compared to 0.55% charged
under superannuation.
You have requested $3010 p.a. (0.35%) be
deducted in monthly instalments from your
investment.
The fees above will be deducted from your
investment in monthly instalments and will
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vary according to the investment balance

Your product
costs
Each product we have recommended

charges you a fee or a premium to
professionally manage your investment.
These products form an important part of
your financial plan they make sure that the
strategy we have recommended can be
implemented.
Mark
Summit Personal Pension costs $5278
each year, and is based on 0.91% of the
investment balance.
Vicky
Summit Personal Pension costs $2968
each year, and is based on 1.06% of the
investment balance.
The fees above will be deducted from your
investment in monthly instalments and will
vary according to the investment balance.
As well as a management fees, some
investment managers may receive a
performance fee when their performance
exceeds a performance benchmark. Please
read the Product Disclosure Statement for
information on these fees and how they are
calculated.
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What happens next?

We recommend you take this Financial Plan
with you today and read it in full to make sure
you fully understand our advice.
Before you agree to implement your Financial
Plan or agree to receive any of our Ongoing
Advice Services, you should make sure that
you have:
Read and understood both parts of your
Financial Plan: Our Advice and the
detailed sections.
Understood the risks associated with the
strategies and investments we have
recommended.
Asked us any questions you have about
your Financial Plan and our advice.
Read and understood the Product
Disclosure Statements (PDSs) about each
of the financial products we have
recommended.
Read and understood the Agreement to
Implement Advice.
Read and understood the Ongoing Advice
Agreement.
Completed and signed any forms and
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agreements.
Which investments are best for me?

Matching your
investments to
your needs
In preparing your financial plan dated 8 July

2012 we discussed investments and
explained how we select investments that are
appropriate to your goals,
investment timeframe,
attitude to investment risk, and
the strategies we recommend.
Timeframes
We have designed investment strategies to

match the timeframes of the goals you want
to achieve.
Matching investment strategies to each of
your goals ensures your overall blend of
assets is appropriate.
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Long-term investment strategy

We have based your long term investment strategy on
your goal to build funds for retirement.
Recommended investment strategy
Fixed interest
Your long term investments will be invested

entirely in fixed interest. This should pay you
a higher interest rate than leaving the money
in a cash account. You will still be able to
access this money at short notice, however
you may forfeit part (or all) of the interest or
capital if you do so.
Recommended investment managers

Summit
We recommend you use Summit, as it allows

you to invest in an extensive range of
underlying investments, including direct
shares.
Summit will send you regular reports on your
investments as well as giving you 24-hour/7
days-per-week access to your account
information via the internet.
We have provided you with a Summit
brochure (Product Disclosure Statement) that
has more information on this investment.
Underlying
investments
Your current investment is purely into

Australian fixed interest. The information on
Vanguard Australian Fixed Interest Index
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Fund is attached.
SUMMIT also offers diversified and Multi
manager sector funds which can be used in
needed.
A diversified fund invests your investment
capital across various asset classes for you.
This provides you with a simple and
convenient means of investing as the fund
manager regularly monitors the underlying
investments along with the overall asset
allocation of the fund within the set
guidelines.
A Multi manager sector fund predominantly
invests into one asset class via a number of
fund managers. This provides you with a
simple and convenient means of investing as
the fund manager regularly monitors the
individual fund managers within the set
guidelines.
Recommended long term investments
Investm Own
ent
er
Summit
Mark
Regular
Reinv
Investments /
Final
est
balance
incom
withdrawals
e
($) pa
$580,000
Minimum
Yes
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Personal
Pension
plan
Summit
Personal
Vicky
Pension
plan
compulsory
Minimum
compulsory
$280,000
Yes
Rest of your super monies which will still stay with

Summit Superannuation plan is also invested in
Vanguard Australian Fixed Interest fund.
Your long term asset allocation
All owners
All owners: Long term Investment strategy
Combined
Asset class
Cash
Target Recomme
asset
nded
Differe
allocatio allocation nce
n (%)
(%)
0.0%
0.0%
0.0%
Australian Fixed
Interest
100.0%
100.0%
0.0%
Overseas Fixed
Interest
0.0%
0.0%
0.0%
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Australian
Equities
0.0%
0.0%
0.0%
Overseas
Equities
0.0%
0.0%
0.0%
Property
0.0%
0.0%
0.0%
Other
0.0%
0.0%
0.0%
Total
0.0%
0.0%
0.0%
Your long term investment portfolio

allocation closely reflects your target
allocation.
asset
asset
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Summary of our investment recommendations

Investment
Start Chan Final

Ow
balan
ge balan
ner
ce (+/-)
ce
Summit Personal
Pension
Mar $580,
k
000
$0
$580,
000
$580,
000
$0
$580,
000
Vick $280,
y
000
$0
$280,
000
$280,
000
$0
$280,
000
$280,
000
$0
$280,
000
Vanguard Wholesale Aust Fixed Interest

Index
Summit Personal
Pension
Vanguard Wholesale Aust Fixed Interest
Index
Total
Rest of your super monies which will still stay with

Summit Superannuation plan is also invested in
Vanguard Australian Fixed Interest fund.
Summary of replaced products
Initial cost of changing products
Mark
Replaceme
Less
Less
Net
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exit
fees
amou
Existing
estimat
includi
nt
investmen nt amount
ed
ng
availa
t
tax
broker
ble
age
Summit
Personal
Super
$580,000
$0
$580,0
00
Vicky
Less
exit
Net
Less
fees
amou
Replaceme
estimat
Existing
includi
nt
nt
amount
ed
investmen
ng
availa
tax
t
broker
ble
age
Summit
Personal
Super
$280,000
$0
$280,0
00
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Your position after our advice

Our assumptions
The following tables show your current tax and cashflow
position. The projections were prepared using the
following assumptions.
General assumptions:
Start date for projections:
1st July 2011
Inflation rate (per annum):
2.5%
Centrelink payments
(indexation)
2.5%
Please be aware that:

Income and growth rates used are considered
reasonable, but are only estimates and cant be
guaranteed. They are provided as a guide only.
We have used the information you provided us for our
projections, which is detailed in the About You
section. Please check the information is correct and let
us know if there are any errors or missing information.
While we have carefully considered the tax
consequences of our recommendations, we ask that
you confirm your exact annual tax liability with your
accountant.
As your circumstances and the legislation surrounding
superannuation, taxation, and Centrelink is constantly
changing, it is important to regularly review your
43
AMITY COLLEGE OF
financial plan to make sure the recommended strategy

continues to be suitable.
We have assumed you will receive employer super
guarantee contributions of 9 per cent of your salary
while you are employed.
As the legislation surrounding the superannuation and
taxation legislation is constantly changing it is
important to review your financial plan to ensure the
strategy is still suitable at that time.
We have assumed that you draw the minimum allowable
income from your account-based pension.
We have taken total amounts available in pension and
super accounts for projection purposes. As you intend
to maintain superannuation accounts and also
contribute to it, your monies are likely to last longer
than projected. You are uncertain as to amounts of
pension
withdrawals
or
contribution
into
superannuation. We will be able to do exact
projections in couple of years once you decide to retire
and are clear about future income needs.
44
AMITY COLLEGE OF
Pension Projection for Mark

Age
Year to
30
June
Open
balance
Min
drawing
Max
drawing
Desired
Actual
Fee
%
balance
Fee ASF
Earning
Close
balance
72
2012
620,000
-31,000
-631,766
-20,000
-31,000
-7,481
-2,116
32,984
612,387
73
2013
612,387
-30,619
-624,009
-20,705
-30,619
-7,389
-2,090
32,579
604,868
74
2014
604,868
-30,243
-616,346
-21,435
-30,243
-7,298
-2,064
32,179
597,441
75
2015
597,441
-35,846
-608,778
-22,190
-35,846
-7,172
-2,028
31,620
584,015
76
2016
584,015
-35,041
-595,098
-22,973
-35,041
-7,010
-1,983
30,910
570,891
77
2017
570,891
-34,253
-581,725
-23,782
-34,253
-6,853
-1,938
30,215
558,062
78
2018
558,062
-33,484
-568,652
-24,621
-33,484
-6,699
-1,895
29,536
545,521
79
2019
545,521
-32,731
-555,873
-25,489
-32,731
-6,548
-1,852
28,873
533,262
80
2020
533,262
-37,328
-543,381
-26,387
-37,328
-6,368
-1,801
28,078
515,842
81
2021
515,842
-36,109
-525,632
-27,317
-36,109
-6,160
-1,742
27,161
498,992
82
2022
498,992
-34,929
-508,461
-28,280
-34,929
-5,959
-1,685
26,274
482,692
83
2023
482,692
-33,788
-491,852
-29,277
-33,788
-5,764
-1,630
25,416
466,925
84
2024
466,925
-32,685
-475,786
-30,309
-32,685
-5,576
-1,577
24,585
451,672
85
2025
451,672
-40,651
-460,244
-31,377
-40,651
-5,338
-1,510
23,536
427,710
86
2026
427,710
-38,494
-435,827
-32,484
-38,494
-5,055
-1,430
22,287
405,019
87
2027
405,019
-36,452
-412,705
-33,629
-36,452
-4,787
-1,354
21,105
383,532
88
2028
383,532
-34,518
-390,810
-34,814
-34,814
-4,531
-1,281
19,977
362,882
89
2029
362,882
-32,659
-369,769
-36,041
-36,041
-4,268
-1,207
18,817
340,183
90
2030
340,183
-37,420
-346,639
-37,312
-37,420
-3,978
-1,125
17,541
315,200
91
2031
315,200
-34,672
-321,182
-38,627
-38,627
-3,662
-1,036
16,145
288,021
92
2032
288,021
-31,682
-293,487
-39,988
-39,988
-3,317
-938
14,624
258,402
93
2033
258,402
-28,424
-263,306
-41,398
-41,398
-2,942
-832
12,970
226,200
94
2034
226,200
-24,882
-230,493
-42,857
-42,857
-2,534
-717
11,173
191,265
95
2035
191,265
-26,777
-194,895
-44,368
-44,368
-2,092
-592
9,226
153,439
96
2036
153,439
-21,481
-156,351
-45,932
-45,932
-1,615
-457
7,119
112,554
97
2037
112,554
-15,758
-114,690
-47,551
-47,551
-1,099
-311
4,844
68,438
98
2038
68,438
-9,581
-69,737
-49,227
-49,227
-542
-153
2,391
20,906
99
2039
20,906
-2,927
-21,303
-50,963
-21,303
-127
-36
560
45
AMITY COLLEGE OF
Pension Projection for Vicky

Age
Year
to 30
June
Open
balance
Min
drawing
Max
drawing
Desired
Actual
64
2012
328,000
-13,120
-334,224
-20,000
65
2013
320,303
-16,015
-326,381
-20,705
66
2014
311,589
-15,579
-317,502
-21,435
67
2015
301,795
-15,090
-307,522
-22,190
68
2016
290,851
-14,543
-296,371
-22,973
69
2017
278,687
-13,934
-283,975
-23,782
70
2018
265,226
-13,261
-270,259
-24,621
71
2019
250,390
-12,520
-255,142
-25,489
72
2020
234,096
-11,705
-238,538
-26,387
73
2021
216,255
-10,813
-220,359
-27,317
74
2022
196,776
-9,839
-200,510
-28,280
75
2023
175,562
-10,534
-178,893
-29,277
76
2024
152,510
-9,151
-155,405
-30,309
77
2025
127,515
-7,651
-129,935
-31,377
78
2026
100,464
-6,028
-102,371
-32,484
79
2027
71,239
-4,274
-72,591
-33,629
80
2028
39,716
-2,780
-40,470
-34,814
20,000
20,705
21,435
22,190
22,973
23,782
24,621
25,489
26,387
27,317
28,280
29,277
30,309
31,377
32,484
33,629
34,814
81
2029
5,765
-404
-5,875
-36,041
-5,875
Fee
%
balance
Fee
ASF
Earning
-3,597
1,113
1,085
1,053
1,017
-3,457
-978
15,243
278,687
-3,302
-934
14,557
265,226
-3,130
-885
13,800
250,390
-2,941
-832
12,967
234,096
-2,734
-773
12,053
216,255
-2,507
-709
11,054
196,776
-2,260
-639
9,965
175,562
-1,991
-563
8,781
152,510
-1,700
-481
7,495
127,515
-1,384
-391
6,102
100,464
-1,042
-295
4,595
71,239
-674
-190
2,970
39,716
-276
-78
1,217
5,765
-35
-10
154
-3,935
-3,836
-3,723
17,351
320,303
16,912
311,589
16,417
301,795
15,862
290,851
46
Close
balance
AMITY COLLEGE OF
Total of Both
Age
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
Year
to 30
June
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
Open
balance
950,000
948,019
936,378
924,881
913,524
902,307
891,228
880,285
869,476
858,800
848,255
837,840
819,012
800,607
782,615
765,028
747,836
723,408
699,777
676,918
654,806
633,417
599,812
567,991
537,857
509,323
480,557
445,265
410,543
372,647
331,388
286,571
237,989
185,423
128,647
67,419
Min
drawing
-38,000
-47,401
-46,819
-46,244
-45,676
-45,115
-44,561
-44,014
-43,474
-42,940
-42,413
-50,270
-49,141
-48,036
-46,957
-45,902
-52,349
-50,639
-48,984
-47,384
-45,836
-57,007
-53,983
-51,119
-48,407
-45,839
-52,861
-48,979
-45,160
-40,991
-36,453
-40,120
-33,318
-25,959
-18,011
-9,439
Max
drawing
Desired
Actual
Fee
%
balance
Fee
ASF
-968,028
-966,010
-954,148
-942,432
-930,861
-919,431
-908,141
-896,990
-885,976
-875,098
-864,353
-853,739
-834,554
-815,800
-797,467
-779,546
-762,028
-737,136
-713,057
-689,764
-667,233
-645,437
-611,195
-578,770
-548,064
-518,988
-489,676
-453,715
-418,334
-379,718
-337,677
-292,010
-242,505
-188,942
-131,088
-68,698
-20,000
-20,705
-21,435
-22,190
-22,973
-23,782
-24,621
-25,489
-26,387
-27,317
-28,280
-29,277
-30,309
-31,377
-32,484
-33,629
-34,814
-36,041
-37,312
-38,627
-39,988
-41,398
-42,857
-44,368
-45,932
-47,551
-49,227
-50,963
-52,759
-54,619
-56,544
-58,537
-60,601
-62,737
-64,948
-67,238
-38,000
-47,401
-46,819
-46,244
-45,676
-45,115
-44,561
-44,014
-43,474
-42,940
-42,413
-50,270
-49,141
-48,036
-46,957
-45,902
-52,349
-50,639
-48,984
-47,384
-45,836
-57,007
-53,983
-51,119
-48,407
-47,551
-52,861
-50,963
-52,759
-54,619
-56,544
-58,537
-60,601
-62,737
-64,948
-67,238
-11,521
-11,438
-11,298
-11,159
-11,022
-10,887
-10,753
-10,621
-10,491
-10,362
-10,235
-10,057
-9,831
-9,610
-9,394
-9,183
-8,931
-8,639
-8,357
-8,084
-7,820
-7,486
-7,089
-6,713
-6,356
-6,009
-5,620
-5,195
-4,754
-4,274
-3,751
-3,184
-2,570
-1,906
-1,190
-418
-3,259
-3,235
-3,195
-3,156
-3,117
-3,079
-3,041
-3,004
-2,967
-2,931
-2,895
-2,844
-2,781
-2,718
-2,657
-2,597
-2,526
-2,443
-2,363
-2,286
-2,212
-2,117
-2,005
-1,899
-1,798
-1,699
-1,589
-1,469
-1,345
-1,209
-1,061
-901
-727
-539
-337
-118
Earning
50,799
50,434
49,815
49,203
48,599
48,002
47,413
46,831
46,256
45,688
45,127
44,344
43,347
42,373
41,421
40,490
39,376
38,090
36,846
35,642
34,478
33,006
31,255
29,597
28,027
26,493
24,779
22,905
20,961
18,843
16,539
14,039
11,332
8,406
5,247
1,844
47
AMITY COLLEGE OF
Close
balance
948,019
936,378
924,881
913,524
902,307
891,228
880,285
869,476
858,800
848,255
837,840
819,012
800,607
782,615
765,028
747,836
723,408
699,777
676,918
654,806
633,417
599,812
567,991
537,857
509,323
480,557
445,265
410,543
372,647
331,388
286,571
237,989
185,423
128,647
67,419
1,489
Will you meet your retirement goals?

How long will you need to draw an income?
Mark & Vicky, you would like to receive only the minimum
withdrawal from your pension. You receive additional
income from your property investments and thus you
need only minimum income from your pension. When
working out how much money you need for retirement,
we need to determine how long your money should last.
Usually, this is based on your statistical life expectancy*
at retirement:
Name
Age at retirement
Statistical life
expectancy at
retirement
Client
74
11.96
Partner
66
20.76
* Life expectancy estimates are based on the figures

within the Australian life tables (2005-07).
The projections that your pension account will provide
you income till Mark reaches age 99.
What assumptions have we used?
When calculating how long your retirement income could
last, we need to make some general assumptions:
Inflation will be 2.5% p.a.
48
AMITY COLLEGE OF
Your retirement savings will be invested with a cash

and fixed interest allocation. Therefore, we have used
an annual earning rate (after tax) of 5.5%.
You will continue to receive minimum employer
contributions (SGC) up until your retirement.
What investments are included as part of the
retirement savings?
We have excluded your investments outside of
superannuation to focus on how long your
superannuation assets will last.
We have excluded any age pension benefits you may
be entitled to, in order to focus on the longevity of your
retirement assets only.
Note: Our projections are based on a number of
assumptions and should only be used as a guide. It is
important to regularly review your financial position as
changes to your personal situation, relevant legislation or
assumptions used may lead to a different outcome.
49
AMITY COLLEGE OF
Your adviser
Bilal Arafaat
Authorised representative (No:45689) of AXA
Financial Planning Limited
78 Fowler Road
ILLAWONG NSW 2234
Phone: 02 95325643
Fax: 02 95321456
Email: bill@zams.com
Web: www.zams.com.au
The practice
Who your
adviser is
licensed
through
ZAMS STRATEGIC SOLUTIONS PTY

LTD
Corporate Authorised Representative
Ind ASIC Rep Num 25567
AXA Financial Planning Limited
50
AMITY COLLEGE OF
ABN 21 005 7099678

Australian Financial Services Licensee,
License No: 234678
Street address:
750 Collins Street

DOCKLANDS VIC 3008
Postal address:
GPO Box 2830AA

MELBOURNE VIC 3000
51
AMITY COLLEGE OF
We provide a range of ongoing advice services because

you need more than a single financial plan to ensure you
keep on track to meet your goals. Our service offer
ensures your financial plan keeps up to date with your
changing needs.
Information and communication
We will contact you each year to reassess your personal
and financial situation. This includes:
re-establishing your goals and confirming
income, expenses, assets and liabilities, and
your
considering changes in legislation and assessing

whether new products on the market can better suit
your needs.
Financial Planning legislation is regularly reviewed and
updated by government. These changes can create
opportunities to help you to reach your personal and
financial objectives. We ensure you take advantage of
available strategies maximising your potential to meet
your goals.
When you You dont need to wait for us to contact
should
you if you have ongoing questions
contact us about your financial plan. You should
also contact our team immediately if
52
AMITY COLLEGE OF
you experience changes to any of the

following:
Your goals and objectives
The timeframe to achieve your goals
Dependant family members
Your family home
Income and expenses
Assets and liabilities
Savings and emergency funding
Strategy Management
Throughout the year and during our regular meetings,
your financial plan will be monitored in line with the
recommended strategy management services. Some
areas of our advice need to be continually monitored to
ensure you progress towards your goals.
From time to time it will be necessary to alter your
financial plan based on changes in your circumstances
and legislation.
Saving for retirement
As you approach retirement, you probably know what
kind of lifestyle you want to lead, but unfortunately you
also have less time to save for your retirement goals.
So, it is vital that you maximise your savings potential.
53
AMITY COLLEGE OF
Owning assets in super is generally more tax effective

than owning them in your own name. Our retirement
strategies focus on building wealth inside your super as
much as possible.
Planning to
meet your
retirement
goals
Superannuation
and
retirement
legislation is constantly reviewed
sometimes the changes work in your
favour, and sometimes they dont.
We break down the jargon and
legislation to explain what strategies
are available to you to meet your
goals.
If easing your way into retirement
sounds like a good idea to you, but
you dont want to reduce your
income, we can help you plan to
retire on your own terms.
In many cases, there are also
options available to increase your
income, without increasing the
number of hours you need to work.
Use your
existing
savings
Generally as you move through life,

your debts and childrens financial
dependency on you decrease,
leaving you with more disposable
54
AMITY COLLEGE OF
income. Our ongoing advice helps

you to understand how you can
redirect this money towards your
retirement plans.
We will advise when you are eligible
to receive government incentives to
save money to superannuation.
Do you
have
enough for
your
retirement
goals?
We regularly project how much your

savings are expected to be worth at
retirement to identify if more funds
need to be saved to meet your
goals.
Age
pension
Where appropriate, we will discuss

strategies to reduce your assessable
income and assets to maximise your
age pension benefit.
As the value of your retirement

savings grows, we investigate
options you have to protect your
funds for retirement.
Even if you are not likely to qualify

for the age pension, we will assess
your eligibility to receive other
Centrelink benefits such as health
55
AMITY COLLEGE OF
care cards.
Living in retirement
The last thing that should be on your mind when you
retire is, do I have enough money? Let us look after
this for you, so you can get back to enjoying all of the
important things in life.
After all, having spent most of your life working and
saving money for retirement the least you can do for
yourself is enjoy it!
Emergency We know that living in retirement can
Funding
produce
some
unexpected
expenses. That is why we continue
to ensure you have enough money
on hand to pay for unplanned costs.
Will your
money
last?
We regularly project how long your

savings are expected to last.
If your savings are not expected to
last throughout retirement we will
investigate what options you have
available to stretch out your
retirement funding.
If your savings are expected to last
throughout your retirement, you may
want to reassess your retirement
lifestyle and increase your regular
income or spend more money on
56
AMITY COLLEGE OF
pastimes
and
other
items.
Alternatively, we can help you to
consider how you would like to leave
your estate for your family and loved
ones.
Is your
income
enough?
We monitor your cashflow closely

and may recommend you alter your
income level each year to take into
account changes in your cost of
living, your age and the value of your
remaining savings.
Where necessary, you may need to
supplement your retirement savings
with additional income to meet your
goals. Throughout your retirement,
we will assess your eligibility to
receive the age pension and other
Centrelink benefits.
Investment Review
Over time, market fluctuations, contributions and
withdrawals from your investment cause the asset
allocation of your fund to change. The asset allocation
plays a key role in determining the return achieved by
your investment and is critical to minimising investment
risk in your portfolio.
57
AMITY COLLEGE OF
Asset
allocation
We re-align your investments with

the
recommended
investment
strategy for your short and long term
goals.
Over time, we may recommend you
change investment strategies to suit
your goals and timeframes.
Fund
managers
We analyse research provided by

AXA Financial Planning Limited to
ensure the fund managers we have
recommended remain appropriate.
Minimise
costs
Wherever possible, costs associated

with making changes to your
investment will be minimised. In
particular, we seek to offset capital
gains so that you are not paying
more tax than is necessary.
As discussed in our Financial Services Guide, we

receive initial and ongoing fees for our advice.
58
AMITY COLLEGE OF
Initial advice
Initial Advice
Provided
Fee Based
on
Payment
method
Plan preparation,
research and
implementation
Initial
advice
agreement
Deducted from
your investment
contribution
Initial advice fee (one-off payment)
Advice
fee
$0
$0
Ongoing advice
The strategy outlined in this plan should be reviewed on
a regular basis so that it continues to meet your needs.
Our service offer is outlined in the previous section and
will make sure the advice we provide remains
appropriate for you in the future.
Ongoing Advice
Provided
Fee based
on
Outlined in ongoing
0.35%
advice agreement
Payment
method
Advice
fee
Deducted from
your investment
balance
$3,010
p.a.
Ongoing advice fee payable by you (each year)
59
AMITY COLLEGE OF
$3,010
p.a.
The fees we receive may differ from the amount you pay
from your investment due to Reduced Input Tax Credit
(RITC). RITC is a partial rebate of the GST that is
passed directly onto you by your investment product.
Therefore, you are not charged the entire amount that
we receive as remuneration.
How our advice fees are collected and distributed
AXA Financial Planning Limited collects our fees (inc.
GST) and retains 3% to support our business. This
includes investment and strategy research, continuing
education, compliance consulting and business
coaching, allowing us provide you with the highest
quality service and advice. The remaining 97% of our
fees are distributed in accordance with our Financial
Services Guide.
Other benefits we may receive
We may be offered or receive the following noncommission benefits at no extra cost to you.
Value Participation Scheme: AXA pays us up to
0.25% of total funds under management in AXA and
AMP wealth management products and up to 3% of
total premiums on some AXA and AMP insurance
products. For example:
If our clients have invested $11million of funds into
Summit we will receive $500.
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If our clients pay a combined annual premium of

$150,000 for insurance with AXA, we may receive
$350.
Technology and Education: AXA Financial Planning
Limited provides us with points when our business
revenue exceeds $50,000. One point is received per
$1.23 (incl GST) over $50,000. Points are only
redeemed for office equipment and staff training to
ensure you receive up to date information and advice.
For example, if our business receives net earnings of
$100,000, we will receive 40,650 points ($50,000
qualifying earnings divided by $1.23). The points are
multiplied by 0.008 cents to produce a benefit worth
$325.
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In this plan, we have included specific information to help

you understand our recommendations and how you will
benefit from them.
This page provides important
information about things that you should know.
Can I change my mind?
Yes. If you are not happy with our advice, you do not
have to accept the recommendations.
If you proceed with our advice and change your mind
about a product we have selected, you may be able to
get your money back. Insurance products and managed
funds generally have a 14 day cooling off period. You
should refer to the product disclosure statement for
further details.
What happens if the information I provided wasnt
accurate?
If the information you gave us was incomplete or
inaccurate, the advice may not be appropriate for you.
Please let us know if any of the information does not
reflect your current situation.
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Do I need to contact a registered tax agent or

Centrelink?
Yes. Any tax and Centrelink references in this plan are
estimates only.
You should obtain advice from a
registered tax agent or accountant regarding the taxation
implications and confirm the estimates of your
entitlements with Centrelink directly.
How does my adviser select the recommended
products?
AXA Financial Planning Limited maintains an approved
product list developed using research from external
research houses. From this list we select products to
suit your situation.
The approved product list is
continually reviewed and can be supplied to you on
request.
We can provide advice on products from a wide range of
financial product providers, some of which are part of the
AMP Group and are affiliated with AXA Financial
Planning Limited . A full list of our relationships and
associations are detailed in our FSG.
Are my investment returns guaranteed?
No. We have chosen strategies and products to suit your
goals, but we cannot guarantee that the products will
perform in a particular way.
Unfavourable market
conditions can reduce the value of your investments and
the investment returns generated.
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Does my advice have a time limit?

Yes. Our advice is current for 30 days from the date of
this plan. After that time you should not act on any of the
recommendations without contacting us.
Will my personal information be provided to anyone
else?
We will not provide information about you to anyone else
without your written permission, unless the law says that
we must.
We may appoint another adviser to manage your affairs.
Of course, we will notify you when this happens. Your
new adviser would have access to your personal
information unless you instruct us otherwise.
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Whether you are putting aside $2,000 to use in 3 months

or saving for your retirement, the things you need to
consider before investing are the same. These are
outlined over the following pages.
Investing increases the value of your money to help
achieve your goals and objectives.
Meeting your objectives
Reasons for investing will vary from one person to
another.
Common objectives include saving for a house,
managing cash flow, paying for childrens education,
creating wealth, saving for retirement or managing
retirement income.
Different investments
There are five different asset classes you can invest in:
cash, fixed interest, property, Australian shares and
international shares. Each has its own level of risk as
well as a potential return.
Types of investments
Cash
Cash is the most secure investment.

The return you receive will depend on
interest rates at the time.
While cash is very low risk, the
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increasing cost of living (known as

inflation) can decrease the buying value
of your money. Tax on the returns
should also be considered when
working out the real, after tax, return of
a cash investment.
Cash investment can usually be
accessed immediately (at call).
However, if invested in superannuation
and pension accounts, legislative
restrictions must also be considered.
Cash investment offers no growth.
Fixed interest
Fixed interest investments arise from

loans. An investor lends money to a
borrower who must then repay the loan
as well as interest.
Fixed interest investments differ due to:
The type of loan issuer,
The security/asset that backs the debt,
The loan timeframe, and
The interest rate.
Generally, the longer the loan timeframe
and the less secure the lender, the
higher the interest rate.
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Typical
include:
fixed
interest
investments
Term deposits that provide a regular

income at a fixed rate for a set
timeframe.
Mortgage trusts provide regular
interest income at variable rates and a
high level of capital security. Investors
funds are pooled and invested mainly in
registered first mortgages secured
against a spread of freehold property.
Usually only 66% to 75% of the
propertys value is lent.
Bond trusts provide regular interest
income through pooled investment in
Government and corporate bonds.
These funds offer high long-term capital
security and the potential for some
capital growth in addition to interest
income.
Generally you can only access money
from fixed interest investment at
maturity.
Again, when investing in
superannuation and pension accounts,
legislative
restrictions
must
be
considered.
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Australian shares
Australian shares are investments in

companies listed on the Australian
Stock Exchange.
As a shareholder you become a partial
owner of the company and therefore
benefit from the profit and capital growth
the company achieves.
Investment returns are paid in the form
of dividends (a distribution of the
companies profit) and capital growth
(reflecting the increased value of the
company over time).
The upside of growth and profits comes
with the risks associated with owning
any business, cost increases, regulation
changes and increases in competitor
presence.
International
shares
International shares allow you to

become a partial owner of an
international company, the same as you
would in an Australian company.
This can offer opportunities that are not
available within the Australian share
market
and
provide
further
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diversification to your portfolio as

different countries' economies grow at
different rates.
The Australian share market only
represents about 1% to 2% of the world
share markets.
Returns on international shares are
affected by changes in currency
exchange rates.
While the purchase and sale of
Australian shares is relatively easy and
the cost to buy Australian shares is
relatively low, investing directly into
International shares is difficult for the
general investor. Most investors have
exposure to international
shares
through pooled investment structures,
such as super and managed funds.
Property
Residential
For many Australians, property is their
first and most significant investment.
Generally property is purchased to meet
housing needs, not as an investment to
make a profit.
Some people may also buy a rental
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investment property. The risks of direct

property include interest rate changes,
tenant vacancy and property damage.
Property is an all or nothing investment
you can not sell a room if you need
some cash, you have to sell the whole
asset.
Commercial
Commercial and industrial properties
generally
generate
higher
rental
incomes, however, most people cannot
afford to invest directly i.e. buy a whole
office building.
An easy way for Australians to invest in
commercial property is through pooled
investments such as a managed fund or
listed property trusts.
Property is a valuable inclusion in most
people investment portfolios because
property
values
tend
to
move
independently
of
share
prices.
Including property in your portfolio can
smooth out the overall return on your
investments.
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Selecting your investments

Only take as much risk as you need to
Investment risk is crucial to achieving higher investment
returns over the long term. It is also important to
remember that you should only take as much risk as you
need to achieve your goals.
If you can achieve your goals by taking on a low level of
risk, then why risk your money and your goal by taking
on a higher level of risk?
Dont put all your eggs in the one basket

Spreading your money between different asset classes is
crucial to reducing investment risk and protecting your
capital against strong market movements. Each asset
class performs differently from time to time. Including a
range of investments and asset classes will help you
achieve a more consistent overall investment return.
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Investment returns
Returns from the overall market, rather than the actual
investment, will determine the majority of the returns
within an investment portfolio.
This is known as the market return.
Additional returns come from the ability of the manager
to add value relative to the market return. They must do
this so the investor is compensated for any extra risk the
manager takes in the portfolio on an after fees basis.
Putting returns into perspective
Lets assume you need to receive an average a return of
5% per year over five years to meet your goals.
It is important that you understand the difference
between an average return after five years, and actually
receiving a 5 per cent return every year.
It is very unlikely that you will receive a return of 5%
every year. Some years it will be higher and some years
lower, but when averaged over a minimum of five years,
this return is possible.
Choosing your investment strategy
Choosing your investment strategy is the most important
investment decision.
We use portfolio theory in the development of our
investment strategies and construction of the investment
portfolios. They take into account:
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The expected return of the individual asset classes.

Diversification benefits of each asset class.
Business risk (what are competitors doing?).
Implementation costs. Can it be put together so that
costs do not outweigh benefits?
Each investment strategy has a specific investment
objective which it is expected to meet with a reasonable
degree of certainty and a minimum time frame that you
should hold them for.
The investment strategies we typically select from are
detailed below.
Strateg
y
Australia Internationa
n shares
l shares
Propert
Fixed
Cash
y interest
Cash
- 100%
Fixed
interest
100%
30%
Growth
14%
8%
8%
50%
20%
50%
Growth
22%
18%
10%
40%
10%
70%
Growth
34%
26%
10%
26%
4%
85%
Growth
43%
32%
10%
13%
2%
99%
Growth
45%
49%
5%
0%
1%
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Return assumptions
The returns you can expect from the investment
strategies your assets will be invested in are summarised
below:
Cash strategy
Expected return per
annum
Volatility
Market
rate
Fixed interest strategy

Expected return per
annum
Volatility
Market
rate
Based on after wholesale fees returns and 1% active

outperformance in equities and before tax and
administration costs. Calculations based on historical
returns.
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99% of results are expected to fall in this range. 32/3 of

annual results are expected to fall in this range.
Last updated: March 2011
Fund manager selection process
When selecting fund managers we aim to determine the
combination of managers that will provide the best
outcome with a high degree of certainty.
It is sometimes appropriate to choose a number of fund
managers to manage a single asset class within your
portfolio. As a group, they will increase the likelihood of
you achieving reliable strong returns.
Below we have included a description of the types of
managers considered in the investment process.
Index manager
An index manager aims to deliver returns that are
consistently in line with index returns, with a low risk of
underperforming the index.
Enhanced index manager
An enhanced index manager aims to deliver returns that
are consistently above index by a margin of at least the
fund managers fees, with a low risk of underperforming
the index.
Core active manager
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These managers do not have any material or systematic

portfolio biases, and are likely to generate very
consistent (albeit modest) out-performance in most
market conditions. These managers have strong risk
management disciplines, including processes for
identifying and managing unintended risks.
Specialised active manager
An active manager with specific style characteristics is
likely to have a higher risk of underperforming the index
and to generate less consistent returns over time.
However, investors should be compensated with higher
long-term returns.
This type of manager needs to have strong risk
management disciplines and avoid the extremes often
associated with individual styles.
Managing and reviewing your portfolio
Just as important as knowing what managers to put in
your portfolio, is to know when their time is up. So how
does a manager get sacked?
Short-term performance is inconsistent with the
managers stated investment objectives.
Longer-term performance is inconsistent with the
managers performance objectives (usually expressed
on a rolling 3 year basis).
Concern about the implementation of a managers
investment process.
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The emergence of another factor (e.g. staff change)

erodes the managers competitive edge.
Identification of a compelling alternative.
Our research shows that timing in and out of markets is
not a reliable source of added value over time.
Investment portfolio benefits are derived from:
Diversification across
individual securities.
sectors,
managers,
and
Disciplined re-balancing to ensure strategic asset

allocations and manager allocations are enduring
throughout market movements.
Active funds management.
What are other the risks of investing?
Investing in growth assets
Assets such as shares and property are classified as
growth assets. By allocating money to growth assets,
you take on more investment risk than if you were to
invest into cash or fixed interest investments. This
increases the chance that your money will earn more
over the long term, but it also means that there is a
greater chance your investment could go down in value.
If you need to withdraw money from your investments in
a year when your investments have gone down in value,
it could significantly impact your goals.
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Risks of delay
Delays in purchasing and selling investments can
happen if a transaction request is not filled in properly
(e.g. missing signatures) and the investment provider
cant act on the request. Delays may also occur where
the market becomes illiquid. For example, if the ASX
suspends trading in a particular share, you may not be
able to buy or sell that share until the suspension is
lifted.
Liquidity risk
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Sometimes, an investment may become illiquid. This

means that withdrawals will not be allowed unless the
responsible entity of the investment makes a withdrawal
offer. The responsible entity is not obliged to make this
offer. Where withdrawal requests exceed the amount
available for release from the fund, the amount released
will usually be distributed proportionally to those who
have made requests. For more information you should
read the PDS of your chosen investment.
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
http://www.moneysmart.gov.au or we can provide a copy
on request.
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Please sign and return this agreement. If you have any

questions about our ongoing advice and service, please
ask us before you sign.
Please review this Client Agreement: Ongoing Services
(Agreement) carefully as it outlines the understanding
between Zams Strategic Solutions Pty Ltd (Zams
Strategic Solutions Pty Ltd) and you (Mark Apton &
Vicky Apton ) .
Ongoing advice services
Summary of the selected Frequency
ongoing advice services
Cost per year
Regular contact
$0
Ongoing advice meeting offer

Strategy
Management
Investment Review
Annual
&
$0
$2800
Total ongoing advice fee $2800 p.a.

payable by you (each year)
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Please refer to the Ongoing Service Provided section

for a detailed explanation of the ongoing advice services
we will provide. If you require additional advice that is
not covered by the advice services packages listed
above, you may incur additional charges. In such
instances, we will provide you with a quote before you
receive any advice.
Payment Method
Advice fees must be paid in advance using Bpay,
cheque, or debited directly from your bank account,
credit card or investment balance in annual or regular
instalments. Please note that ongoing advice fees paid
from your investment balance will continue until you elect
to stop them or the investment is ceased.
Please indicate your preferred payment method and
frequency below:
Ongoing Advice
Fee (each year)
Payment Method
$2800 p.a.
Investment
deduction
This is based on
0.35% of your
investment balance
Deduction
Frequency
Monthly
Quarterly
Annually
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CONCLUSION
I have advised them with existing superannuation
plan combined with account based pension plan.
As superannuation is a backup which is continuing
and is required to sustain. Whereas account
based plan is to generate income naturally, for
which amount is transferred from existing
superannuation plan.
It is advisable that the spouse become the
nominee.
For long term perspective, amount should be
allocated to fixed interest earning investments
only (considering the age) which has already
being taken care of in form of underlying
investments in Australia fixed interest.
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Superannuation in Australia

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Summer Internship

B.Com (Hons.) (2010-13)

Under the Supervision of

Dr. Puja Singhal

AMITY COLLEGE OF COMMERCE AND FINANCE

I hereby certify that BILAL ARAFAAT students of

Ms. Puja Singhal

First of all I would like to present this report to Dr.

which this project would not been successfully

and ensure you have a plan to achieve your goals

Bridging the gap

Based on the research we have conducted, we will

Staying on track with regular ongoing advice

professionally manage your investment or insurance.

Initial commission deducted from your investment cont

About AXA Financial Planning

Relationships and associates

Dr. Mark Apton

Dr. Mark Apton & Mrs.Vicky Apton

DATA ANALYSIS &

The information you have provided us forms the

Mr. Mark Apton

Mrs. Vicky Apton

43 Hampden Street, Liverpool

Ruswell Pty Ltd

Ruswell Pty Ltd

Mr. Mark Apton

Mrs. Vicky Apton

Marks superannuation details

Sup Em Per Sala Fun

Pres Taxerve free

Vickys superannuation details

Your children are grown up and you do not have any

One of the most important steps of the financial planning

You would like to have an income of about

We have agreed to not address the following

You have accumulated sufficient funds to

We have reviewed your investment

We recommend you set up a pension

automatically. This type of account is called

pension income will be tax free.

We recommend you set up a super

We recommend you set up your pension

You will have peace of mind, that legally,

You have financial goals you wish to achieve

Long term for

Fixed Interest only allocation

Your current situation, goals and strategy

The amount you receive from your

If unplanned expenses arise, we can help

When investing there is a chance that

on which asset class (such as shares,

Please refer to Ongoing Services

Dont feel like you need to wait for a

We recommend you meet with a solicitor

research, prepare, implement and maintain

This section summarises the advice fees

Ongoing advice fees

vary according to the investment balance

Each product we have recommended

What happens next?

Which investments are best for me?

In preparing your financial plan dated 8 July

We have designed investment strategies to