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You are a financial adviser.
Eric and Jayne Ryan have been married for 20 years, she is 45 and he is 47 years of age. They have 3 children, two are independent and their last child is just about to graduate from university and has found a job to start in 2018. They have been seeing you for a number of years and wish to review their investments and regular savings.
They still have a mortgage of $80 000 and hold a mixture of growth and income assets within a managed investment, which has a balance of $70 000. They have no other debt.
They have made an appointment with you to review their investment strategy in light of the current economic outlook and the availability of excess disposable income. They are seeking advice regarding whether they should accelerate payments to their mortgage and pay it off as soon as possible or start a regular savings plan into their managed fund.
Their risk profile indicates that they are balanced investors. As such their current investment is invested in growth and income assets, in accordance with their risk profile.
Explain their options and highlight the disadvantages and advantages of either staying invested or moving to another risk profile.
Hints:They have a house with a liability of $80k and a managed fund of $70,000. They have had a change in lifestyle and are now virtually empty nesters. Do you need to change their risk profile, if so, should you review portfolio? What is your advice in terms of economy, is it hold investment for the long term? Do you recommend to reduce the mortgage? These items need to be discussed with the client and recommendations of whether to remain as is or review strategy. You may also discuss excess disposable income with them now they have no dependents.
Eric and Jayne Ryan have been married for 20 years, she is 45 and he is 47 years of age. They have 3 children, two are independent and their last child is just about to graduate from university and has found a job to start in 2018. They have been seeing you for a number of years and wish to review their investments and regular savings.
They still have a mortgage of $80 000 and hold a mixture of growth and income assets within a managed investment, which has a balance of $70 000. They have no other debt.
They have made an appointment with you to review their investment strategy in light of the current economic outlook and the availability of excess disposable income. They are seeking advice regarding whether they should accelerate payments to their mortgage and pay it off as soon as possible or start a regular savings plan into their managed fund.
Their risk profile indicates that they are balanced investors. As such their current investment is invested in growth and income assets, in accordance with their risk profile.
Explain their options and highlight the disadvantages and advantages of either staying invested or moving to another risk profile.
Hints:They have a house with a liability of $80k and a managed fund of $70,000. They have had a change in lifestyle and are now virtually empty nesters. Do you need to change their risk profile, if so, should you review portfolio? What is your advice in terms of economy, is it hold investment for the long term? Do you recommend to reduce the mortgage? These items need to be discussed with the client and recommendations of whether to remain as is or review strategy. You may also discuss excess disposable income with them now they have no dependents.
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