Larify The Client S Reasons For Wanting To Implement The Proposed Strategy Confirm W 2882086

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Section 1: Clarify the client’s reasons for wanting to implement the proposed strategy.
Confirm with Sandy why he/she wants to commit all the money to superannuation. Clarify that he/she is aware of the potential drawbacks in terms of access (as Sandy is 54) and that it is in order to commit all of the bonus to superannuation.
Cover the following:
1. Clarify the client’s reasons for wanting to implement the proposed strategy.
(a) Why is Sandy happy to commit all the money to super?
(b) Is Sandy happy to have the funds locked away until a condition of release is met?
Section 2: Explain the assumptions you are making about the strategy.
Explain to Sandy the assumptions you have made regarding the position this strategy will put him/her in at retirement: timeframe, investment returns, etc.
Cover the following:
1. Explain the assumptions you are making about the strategy with regard to projections.
(a) What rate of return did you use and why?
(b) What timeframe have you assumed for the investment to be in place?
(c) Get the client to confirm they understand.
Section 3: Explain how to implement the strategy, including who will do what and by when.
In this section you need to explain to Sandy how to implement the strategy, including who will do what and by when. You may choose to assume that the contribution will be made using a paper-based form as Sandy has the funds in a bank account not linked to his/her super fund and online contribution is not possible.
Cover the following:
1. Explain what you will do to help Sandy make this contribution to super.
(a) Cover what he/she needs to do.
(b) Explain how long you think it will take.
(c) Describe how you will put in place reminders to keep track of the progress.
Section 4: Provide a summary of the fees and charges and confirm the client understands and accepts.
Explain to Sandy what the costs are for contributing the money to super, and the fees that will apply in the fund over the next 12 months based on the new account balance. Make sure the client confirms that they understand and accept the fees.
Cover the following:
1. Explain the fees and charges.
(a) Discuss the contribution fees.
(b) Explain the total cost of the fund for the next 12 months, including management fees, investment fees, and account-keeping fees.
(c) Ask the client to confirm they understand and accept.
Section 5: Explain the ongoing service options you have available, including the costs for each.
Now that you have recommended and implemented the strategy, you need to confirm with Sandy what you offer in terms of ongoing advice for clients.
Explain to Sandy what the costs are for contributing the money to super, and the fees that will apply in the fund over the next 12 months based on the new account balance.
Cover the following:
1. Explain your Gold, Silver and Bronze Ongoing Service Options to Sandy.
(a) Discuss what clients get in each option, including reporting frequency, arrangements for reviews and client-initiated changes
(b) Explain the total cost for each option.
(c) Confirm that the client understands the packages.
Section 6: Explain which option is right for the client and why it is appropriate for their situation.
Explain that in Sandy’s case you have selected the Bronze option (you can choose another option if you wish) given his/her relatively simple situation as he/she heads towards retirement in 11 years.
Cover the following:
1. Describe why you chose the particular option.
(a) Discuss why Sandy should have this option.
(b) Explain the total cost applicable and how you will collect the fees.
(c) Confirm that the client accepts this option.
(d) Diarise the review date(s) and confirm client contact arrangements.

Attachments:

Superannuatio….docx