Personal Details
Title Mr Ms
Surname Kamar Kamar
Given Names Radnar Jamie Kendra Marie
Preferred Names Ray Kendra
Marital Status Married Married
Home Address 11 Separate Ave
Beachside QLD 4888 11 Separate Ave
Beachside QLD 4888
Contact No. 0533 412 621 0533 352 636
Date of Birth 8 February 1974 (Aged 48) 5 March 1974 (Aged 48)
Health Good Good
Smoker No No
Expected Retirement Age 65 65
Dependants - Sally – date of birth 9 January 2010 (Aged 12)
Sarah - date of birth 2 April 2019 (Aged 3)
Sally has autism and require considerable care, at least 35 hours per week or more. She has high functioning needs. Sarah is in good health.
Family Ray is an only child and both his parents have passed away.
Kendra’s mother lives in Victoria and her mother is receiving the maximum Age Pension. She also has a brother and sister who live in Singapore who have secured employment there.
Employment Details Ray works for a construction company that he co-owns and involved with heavy machinery. He earns $450,000 p.a. plus SG contribution.
Kendra works part time as a lab technician that studies infectious diseases. She earns $75,000 p.a. plus SG contribution.
Notes
Ray also has a child named Thomas Reid DOB 1 May 2002 (age 20) from a past indiscretion. He has never paid any formal child support.
Ray’s family have a history of cancer.
Kendra’s family have a history of diabetes and hypertension.
Estimated Income and Expenditure
Their estimated income and expenses are as follows:
Income Ray Kendra
Employment Income (1) $450,000 p.a. $75,000 p.a.
Rental Income – Beach property (2) $12,000 p.a. $12,000 p.a.
Rental Income – Mountain top property (3) $7,600 p.a. $7,600 p.a.
Rental Income – City Property (4) $24,375 p.a. $24,375 p.a.
Notes
1. This is the gross salary amount. In addition, they both receive the standard SG contributions. Ray is unsure if he needed to pay SG but thought it was a good idea to do this. He has been paying the minimum amount required under SG legislation. He would like advice if he should continue to do this if not a requriement.
2. This is gross income p.a. TOTAL rental expenses are $4,000 p.a. This is from a house at the beach they purchased 4 years ago.
3. This is gross income p.a. TOTAL rental expenses are $3,000 p.a. This is from a house in the mountains they purchased 6 years ago.
4. This is gross income p.a. TOTAL rental expenses are $5,000 p.a. This is from a house near the city they purchased 3 years ago.
Expenses p.a.
Food, Household, Clothes, Entertainment $60,000
Gas/Electricity/Telephone/Water usage $10,000
Rent $60,000
Presents/Gifts $7,000
Medical and other related expenses (5) $15,000
Car Expenses (6) $15,000
Education (7) $30,000
Accounting Fee (8) $3,000
Holidays – Leisure Vacations $20,000
Mortgage Repayment (9) $75,000
Notes
5. These expenses mainly occur due to special requirements for Sally.
6. Comprehensive car insurance with Alianz is $1,200 per vehicle, registration $800 per vehicle, Roadside assist $200 per vehicle, fuel $3,500 per vehicle and maintenance $1,800 per vehicle.
7. This is $15,000 per child and likely to continue until the children reach age 21
8. These fees are $1,000 for both their personal returns and $2,000 for Ray’s share of the partnership return.
9. These are the repayments for three outstanding home loans on the rental properties. Total outstanding loans is $1,450,000 and interest is 2.7% p.a.
The above expenses do not include rental expenses on the investment property which are $12,000 p.a. in total.
Assets Ray Kendra Joint
Contents $150,000
Car $70,000 $60,000
NAB Classic Banking Account (10) $250,000
Rio Tinto Shares (11) $500,000
Business Assets (12) $350,000
Colonial First State – First
Choice Wholesale Personal
Super (13) $180,000
AMP North Super (14) $80,000
Rental Property – near beach
(15) $600,000
Rental Property – near mountains (16) $400,000
Rental Property – in the city
(17) $1,250,000
Notes
10. There is no interest paid on this account
11. Dividends are 5% fully franked. The cost base is $400,000 purchased 4 years ago
12. This is Ray’s share of business assets. Total value of business assets are $700,000.
13. The fund is invested 100% in Colonial First State Wholesale Index Moderate. There is no insurance cover in the fund. The only contributions made to the fund the past 7 years where super SG.
14. The fund is invested 100% in North Index Moderately Defensive. There is no insurance cover in the fund. The only contributions to the fund the past 6 years where super SG.
15. The outstanding mortgage on this property is $450,000. Interest is 2.7% p.a. and likely to increase soon.
16. The outstanding mortgage on this property is $200,000. Interest is 2.7% p.a. and likely to increase soon.
17. The outstanding mortgage on this property is $800,000. Interest is 2.7% p.a. and also likely to increase soon.
Liabilities Joint
NAB Investment Loan $450,000
NAB Investment Loan $200,000
NAB Investment Loan $800,000
Notes
Total repayments are $75,000 p.a. applied proportionally against each loan. The interest on loan is tax deductible.
Investment Objectives / Financial Concerns
Client’s attitude to risk
People make investment decisions based on time, performance of an investment and the risks they are prepared to accept. You should consider that short-term capital losses might be a consequence of aiming for higher longer-term returns. Generally speaking, the higher the return the higher the risk.
Please indicate with an “x” on the risk/return scale below where you acceptance of investment risk meets your desire for higher returns (1 is low risk, low return – 5 is high risk, high return; please note that this represents a long-term perspective)
x
|____________|____________|____________|____________|
1 2 3 4 5
Your concerns
Mark each box with a number to indicate your level of concern with each area
1 = Not concerned; 4 = very concerned;
2 = slightly concerned; 5 = extremely concerned.
3 = concerned;
1
3
3
4
3
3
2
Income to keep pace with inflation Legal, logical and appropriate
tax relief
Easy access to your capital Regular income from your
investment
Easy to manage Capital growth
Volatility/capital stability
Estate Planning
They have no Wills or Power of Attorneys in place nor is there any formal arrangements in place for care for Sally.
The have no estate planning documents for the business and the business is a partnership based on a 5 page partnership document they found somewhere else and edited to suit their circumstances.
Insurance
Life Insurance
They have no life or disability insurance in place.
Health Insurance
They have no health insurance
Business Insurance
The partnership business has no insurance
General Insurance
Type Cover Amount Annual Premium Details
Car Insurance Ray Comprehensive – market value $1,200 RACV Market Value, excess $950, no windscreen damage cover, no car hire. Car is 3 years old
Car Insurance Kendra Comprehensive – market value $1,200 RACV
Market Value, excess $950, no windscreen damage cover, no car hire. Car is 4 years old
The contents in their home are not insured.
Planning Issues
They would like to prepare for their future and retirement.
They would like to retire at age 65 but Ray would consider working a little longer if needed.
They ideally would like a comfortable lifestyle in retirement and would like to have an income of $200,000 p.a.
They would like to continue with their children’s education up until age 21.
They would like to provide bequests to their children at age 21 so they can have a good start to life.
They feel like they are paying too much tax.
They are wondering if they should consider ownership structure of their assets and if joint ownership is the best option.
They would like to have at least $50,000 in their bank account in case of emergencies.
Given their level of assets and high income they felt they did not need insurance and wonder if this is the best thing for them.
They have not established if there is government support available for Sally and wonder what support is available.
They have not done any Wills as they thought they were too young to worry about such documents and wonder when they should consider getting Wills done.
Ray and his business partner where good friends from High School and started the business when they were in trade and have grown from then. Some time ago they found a copy of a partnership document which they edited to suit themselves. This is the only formal document they have in place. They wonder if they should now review this.
They haven’t had much help with the business as they think it shouldn’t be too complicated in construction.
His partner does not have much assets to his name but is a key person to the business as his partner secures most of the work. Ray is concerned that if something happens to his partner his income can drop significantly. For this reason, the valuation of the business predominantly includes the value of assets and not goodwill.
Ray mainly specialises in operating specific machinery.
They recently bought equipment worth $500,000 in the name of the partnership. This is included in the business valuation. They have been renting equipment in the past, but as the business is growing, they are purchasing more machinery.
As the business assets are growing, they feel like they don’t need to take out insurance and save on premium costs.
The business employs five (5) people on a permanent basis and fifteen (15) on a casual basis.