This is done keeping in view the non deductible outcome regarding the superannuation funds at the age of sixty. They are advised to take Total permanent disability insurance that covers both life and disability insurance. In case of disability it will provide minimum possible income and the lump sum of amount mentioned as life cover. Along with the insurance cover, they are advised to opt for income protection scheme that replaces the 75 percent of the income and 15 percent of superannuation funds. The advice for Gavin and Joanne was given keeping their aggressive nature of investing. As they have enough cash after expenses including school fees they have enough opportunities to invest. Nevertheless, they are advised to invest with the equity of their immovable property and a limited investment in income protections and insurance schemes. This is due to the fact to keep the cash for the next next financial year for new government decisions regarding superannuation and income protection scheme policies. After two years of superannuation changes there is a chance of bringing changes in them and the surplus of cash in the hand can help in utilizing the new opportunities put forward by the government.
2.1 Mode of planning: The holistic approach to plan the financial future is known as financial planning. Setting short and long term goals are involved in it. Strategies are planned to achieve these goals. Financial back ground, current financial position, insurance position and the financial goals and aims. The planning should be done by developing a strategy taking into account all the factors that outline the work towards the financial goals. The investment plan will be with relevant investment vehicles and asset mixes that are been identified with the client. The financial planning depends on the following
1. Setting life style goals
2. Budgeting cash flow planning
3. Structural advice
4. Wealth protection and contingency planning
5. Retirement planning and savings
6. Investment planning
7. Retirement planning and income streams
8. Estate planning
9. Product recommendations 1
2.2 Needs of the client: The needs of any client are about setting life style goals. To set a goal better than now and to sustain it. Clients Gavin and Joanne have a kid going to school and soon enter college. They have two homes one for each and a loan to repay. This makes them compulsory to plan the regular income to pay for the college of their kid in the future and to pay the bank loan on the home they own without disturbing the superannuation outcomes. This requires contingency planning with the available income. For this purpose, the incomes of Gavin and Joanne should be taken into consideration. This requires new investment in the superannuation, income protection and insurance schemes. It is better to have returns by the time of their son entering college to make him enable to study without working part time.
2.3 Superannuation ending at June 2007: They are trying to contribute superannuation to escape tax paying. By the year ending with June