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Markus and Cynthia.docx - Wealth Creation and Estate...

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Wealth Creation andEstate Planning
ContentsIntroduction..........................................................................................................................................2Goals and Objectives............................................................................................................................2Recommendation..................................................................................................................................2Your Goals.........................................................................................................................................2Risk profile and assets allocation.........................................................................................................6Product Recommendation....................................................................................................................7Russell Investment High Growth Fund - Class A...............................................................................7Vanguard Investor Funds......................................................................................................................9Russell Investor Class A.......................................................................................................................10Comparison of Russell class A and Vanguard Funds:.........................................................................10Gearing Option....................................................................................................................................12Effect of gearing..............................................................................................................................13Advantage of gearing......................................................................................................................14Disadvantages of gearing................................................................................................................14Financial Projection with current cash flow.......................................................................................14Conclusion...........................................................................................................................................15References...........................................................................................................................................16
IntroductionThis report shows the current financial situation for Mr. Markus Springstein and Mrs. CynthiaSpringstein. In this report we have discussed about their current situation, their goal and objectiveand recommended suitable strategy to achieve their goals. The aim of the report is to make sureclient's goals and objectives are met within the time frame. With our recommendation Markus andCynthia not only able to meet their goals also payoff their other debts with a surplus. Moreover, withestate planning and insurance advice they be able to carry out their wishes after their death.Goals and ObjectivesMarkus and Cynthia, as we discussed you both wantedTo pay off the residential home and the holiday home in 5 yearsTo build wealth with a goal of $200,000 invested in 10 years' timeTo minimize tax paidAcquire a new car at retirement ad spend $50,00 on a new SUV,To make charitable donations of $5000 per annum to the Australian Red cross to support theirwork for homelessTo save to pay for children's university degree (estimated at $75,000) each in 10 years' timeTo ensure their wished are carried out when they pass away.Primarily, these objectives cannot be obtained as the as the total cost of the above objectives exceedyour net income of $147,318 joint income Per annum, your current expenses are at $123,340 at thisstage and surplus left is $23,978. if you were to move from the current situation. The expected timeto pay off the mortgages and meet your goals is 10 years. Realistically, the estimated time frame topay off the mortgages is 6 years as per our calculations. However, all the goals and objectives will beachieved in 10 years.RecommendationYour GoalsTo pay off the mortgage of the principle residence and holiday home within the next 5 yearsTo build wealth of $200,000 in 10 yearsReduce tax to maximum possibleTo acquire a new car at retirement, which would cost $50,000To make charitable donations of $5000 per annum to the Australian Red cross to supporttheir work for homelessTo save to pay for children's university degree (estimated at $75,000) each in 10 years' time
To ensure their wished are carried out when they pass away.As we discussed certain goals were not achievable in the time frame given. We discussed that thecharitable donations, you wanted carry out for 7 years which will cost $35,000 overall.

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Term
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Tags
Vanguard fund, Mrs Cynthia, Russell Investment High Growth Fund, Russell investment

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