risks of the strategy and product, Management Theories

Yanni and Joanna require some investment advice. Joanna has sold $660,000 worth of Woolworths Limited (WOW) shares that she inherited late previous financial year. She has $616,000 remaining after paying capital gains tax, which she has deposited in a cash management account. The couple would like you to practice a formal investment plan to help them appropriately invest this money. During your discussion, you gather the following information:

  • Yanni is 51 years old and Joanna is 52.
  • They have been married for over 20 years and have 2 adult children, one is currently completing a Masters degree in Economics and 1 has a Masters degree in English Literature. Both children still live at home and the eldest child is engaged to be married. Once married, she expects to continue to live with her spouse in the family home for three years while they save for their own home.
  • Yanni gets a salary of $202,000 p.a. as a purchasing manager for Woolworths.
  • You have already determined that Yanni and Joanna's employer superannuation balances are sufficient for their requires at this time, as they have both been investing into personal superannuation via salary sacrifice on top of their compulsory contributions. You have already confirmed that these arrangements are satisfactory.
  • They live in a large and comfortable new home worth approximately $925,000. They see no require to change their living arrangements before retirement.
  • They have a personal mortgage balance of $150,000 secured against their home, a $12,000 bank credit card debt and $4,000 spread over three store credit cards.
  • They own an investment property worth $418,000 with an attached investment loan/mortgage of $280,000. They do not need to sell this property.
  • They say that they have been investing for some years; though, they still feel overwhelmed by the number of options available and concerned about recent market volatility.
  • They say that they have been investing for some years; however, they still feel overwhelmed by the number of options available and concerned about recent market volatility.
  • They are worried about losing their cash and have so far avoided investing at all, apart from depositing it in the cash management trust.

 
Questions
You should prepare an investment plan proposal for your clients. You are needed to provide:

a)  A short but comprehensive discussion of investment return, risk and diversification.
b)  Suggested non-superannuation strategies with overall asset allocation table(s).
c)  Suggested investment products to execute the agreed asset allocations. While you will not be assessed on your specific brand choices, you will be assessed on the appropriateness of the strategies and types of products recommended.
d)  Assumptions that you make in the plan, including justification of those assumptions. Credit will be deducted where this is not given or the assumptions change the specifications of the assignment.
e)  Advantages, drawbacks, justifications and risks of the strategy and product recommendations you make.

 

Posted Date: 3/18/2013 5:14:24 AM | Location : United States







Related Discussions:- risks of the strategy and product, Assignment Help, Ask Question on risks of the strategy and product, Get Answer, Expert's Help, risks of the strategy and product Discussions

Write discussion on risks of the strategy and product
Your posts are moderated
Related Questions
Describe the role of the human rights commissions in Canada, its’ purpose and its’ perceived downfalls. What important advances have been made in our understanding of rights and re

Decision trees are solved by starting in the present and working  into the future. TRUE          FALSE


Developing plans for areas of responsibility. 1)  Work Breakdown Structures (WBS) - explain the value, role and use of the WBS methodology in project management. 2)  Planning

DESCRIBE THE EVOLUTION OF MANAGEMENT THEORY Management and Organizations are products of their historical and social times and places. Therefore, we can understand the evolutio

Cash Flow Statement: Cash flow is a financial statement that summarizes an organizations sources and uses of cash over a specific period of period. Cash flow statements a

Explain the link between organisational develpment strategies and business strategies


#question.A large unit manufacturing electrical goods which has been known for its liberal personnel policies and fringe benefits is facing the problem of low productivity and high

Prior to 2001 there were two big-box bookstore chains in Canada - Chapters and Indigo . Indigo was formed in 1996 by Heather Reisman who left her job as president of Cott Corp