Glover Capital Financial Planners

David Glover - Authorised Representative

122 Market Street, Melbourne, 3000
P.O Box 604, Melbourne, 3000
Phone: 03 9393 3768
Email: dglover@glovercapital.com.au
Bernie & Sarah Tarbell
29 Travis Court,
Lowenstein Vic 3999
10 February 2015
Dear Bernie and Sarah,
I would like to thank you for meeting with me and choosing Glover Capital as your financial
advisor. As your advisor, I will ensure that you are both provided with the most up to date
advice relating to your current financial position and advise you of the necessary steps and
changes that will be required to meet your desired retirement outcomes.
To ensure that our advice is accurate, I would ask that you review the information you have
provided in the Client data form to ensure it is correct. If information provided is incorrect,
has changed or your circumstances have changed, please advise me as soon as possible as
they may affect some outcomes regarding the financial plan I have provided.
I would ask that you consider the statement of advice in its entirety including all its
recommendations. Each component plays an important part in ensuring that all your
retirement goals are met. Alternative scenarios can be considered and tested but excluding
some or part of our recommendations may have an undesirable outcomes.
You can be assured that when we forward any changes and recommendations regarding
your current financial pathway we have carefully considered all possible outcomes regarding
your:

Current assets and their relevance moving forward.

Wealth accumulation strategies.
Taxation implications and minimization strategies.
Current income and expenditure.
Liabilities and reduction strategies.
Superannuation.
Transition into retirement.

Please note our assistance extends beyond our recommendations. I would be more than
happy to guide you through each part of our statement of advice ensuring that you fully
ACN: 0064000345293
Australian Financial
Licence Number 031076
1 | P a gservices
e
Content and information provided is only to be used by the person to
whom it has been provided.

Glover Capital Financial Planners

David Glover - Authorised Representative
122 Market Street, Melbourne, 3000
P.O Box 604, Melbourne, 3000
Phone: 03 9393 3768
Email: dglover@glovercapital.com.au
understand what is being recommended and assist you in implementing each
recommendation. Please note if these recommendations are not implemented by the 1st of
March 2015, you will need to contact me to ensure that the advice is still current and
accurate.
Our goal is to assist you in making the right decisions free of emotion ensuring your financial
pathway leads you to your desired retirement outcome. Please feel free to contact me
should you require any further information and I will be only too happy to assist. If it suits, I
propose we meet again on the 23rd of February to discuss implementing my
recommendations and any concerns or questions you might have. I look forward to talking
with you soon.
Kind Regards,

David Glover.
Financial Planner.

ACN: 0064000345293
2 | P a gservices
e
Australian Financial
Licence Number 031076
Content and information provided is only to be used by the person to
whom it has been provided.

Contents

Executive Summary

Statement of present position

Objectives

Strategies and recommendations

Projections

Current Situation

Assets and Liabilities

Estimated Income and Expenditure

Your Objectives

Risk Profile and Concerns

Investment Strategies

Home Loan

Inheritance

10

Superannuation

10

-Sarah

10

-Bernie

12

Other investments
Investment Property

16

Managed Fund

16

Holiday House

16

Taxation

17

Capital Gains Tax

17

Disclosures and Disclaimers

18

Cost of Advice

18

How to Proceed

19

Authority to Proceed

19

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Executive Summary

Current financial pathway will not fulfil your retirement goals and expectations.
Altering your loan payment $800.00 paid weekly will mean your loan will be repaid in
four years time saving you $8363.35 in interest.
Sarah to contribute her $100000.00 inheritance to her superannuation as a nonconcessional contribution.
Make alterations to your superannuation fund investment strategy. Move from a
moderate investment approach to a growth strategy. This will need to be readdressed closer to retirement moving to a more defensive investment strategy.
Sarah to renegotiate her salary and begin salary sacrificing as of the 1st of March
2015 as per the schedule provided.
Bernie is to begin a TRAP as of the 1st of March 2015. This will ensure he contributes
the maximum $35000.00 possible under the concessional cap and reduce his total tax
payable by salary sacrifice. The tax free pension of $10000.00 will ensure his after tax
income stays around the same.
Excess after tax income of $16896 per year will be contributed to Bernies
superannuation as a non-concessional contribution.
Combined predicted superannuation funds for Sarah and Bernie will total
$959424.35 providing an annual tax free income of approximately $49890.07 to age
90 being above their expected $48000.00 annual income.
Dispose of investment property and managed fund after retirement reducing the
total capital gain payable.
Use the proceeds of $257,802.00 to pay for the lump sums required on retirement.
Contribute the remaining proceeds to the super fund as a non-concessional
contribution.
Look into renting out the holiday house when it is not being used to cover its upkeep
costs.

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Current Situation
Making an assessment of your current financial position allows us to calculate and look into the
future to see if any changes need to be made to meet your retirement goals. This assessment is
made using the information that you have supplied and will form the backbone of the financial plan
that we have provided you to improve your financial transition into retirement.
Bernard (Bernie) Stephen Tarbell you have advised that your date of birth is the 21st of January 1954.
You are employed as an electrician in your own business named Live Line Electricals. Your annual
salary is after tax is $102900 which includes some income from your rental property. You have stated
that you do not intend leaving your current employment and you feel your current employment
situation is secure. You have advised that you would like to retire in around five years and that you
do not intend work on a full time or part time basis after retirement.
Sarah Louise Tarbell you have advised us that your date of birth is the 17th of November 1954. You
are employed as a florist at Thanks a Bunch. Your annual after tax salary is $37000.00 which includes
some income from your rental property and managed fund. You have stated that you do not intend
leaving your current employment and you feel your current employment situation is secure. You
have advised that you would like to retire in around five years and that you do not intend work on a
full time or part time basis after retirement.
You have two adult children Rebecca and Nathan who are 32 and 29 years old respectively and are
non-dependant. You both intend leaving your remaining assets equally between both children at
death. You both have a will which was last reviewed on the 15th of June 2004. You have no enduring
power of attorney or funeral plan.
Bernie and Sarah you live in your own home at 29 Travis Court, Lowenstein Victoria 3999.Your home
is jointly owned between you both and is currently valued at $500000 with a mortgage of $150000.
You intend to live in this home after retirement. You also jointly own an investment property that
was purchased on the 1st of November 2001 for $220000 that now is valued at $300000 with a
$175000 mortgage. Its net rental income is $9500 per annum. You also have a holiday house worth
$250000 that has no mortgage or rental income.
You have $4000 in a joint account. Sarah invested $100000 in a managed fund on the 21st of April
2010 which is now currently valued at $85000 and produces $5000 in income annually. There is a
$20000 overdraft used to cover outstanding debtors in the business and a $2000 credit card which is
paid out in full at the end of each month.
Bernie you have $270000 invested in superannuation that you contribute $10000 annually to as a
concessional contribution. $50000 of this amount is tax free. Sarah you have $100000 invested in
superannuation and your employer contributes $2700 as superannuation guarantee contributions.
$40000 of Sarahs super is tax free. Both Bernie and Sarah have their superannuation invested in Best
Choice Statewide.
Other assets include $25000 in home contents which is jointly owned, a $45000 vehicle owned by
Bernie and a $17000 vehicle owned by Sarah.
5|Page

Your net assets total $1271000 and you have a surplus of income after expenditures of $48496.

Assets and Liabilities

Lifestyle Assets
Home
Cash

500000
4000

Holiday Home

250000

Home Contents

25000

Motor Vehicles

62000

Total Lifestyle Assets

841000

Investment Assets
Investment Property

300000

Managed funds

85000

Superannuation

370000

Total Investment Assets

755000

Total Assets

1596000

Liabilities
Home Loan on Principal Residence

150000

Loan on Investment Property

175000

Total Liabilities

Net Worth

325000

$1271000

* The inheritance of $100000 left to Sarah by her mother to be paid next month has not been
included in the above balance sheet.

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Income and Expenditure

Income
Combined Salary
Investment income
Total Income

170000
14500
184500

Taxation
Income Tax

44600

Income after Tax

139900

Expenses
Mortgage Principal Home
Mortgage Investment Property

30504
8900

Household expenses

42000

Superannuation expense (Bernie)

10000

Total Expenses

91404

Surplus Income

48496

7|Page

Your Objectives

When considering retirement, it is important to note what your retirement goals are and analyse
how realistic they will be to achieve. From the information you have provided, on retirement you
have stated that you require the following:

Retire in Approximately 5 years time.

Have all mortgages paid off at retirement (5 years time).
Have $30000 to purchase a new car.
Have $25000 to take a holiday.
You would like to give each of your children $40000 to start their savings plan.
Restructure your financial affairs so you could achieve an annual income of $48000 per
annum in retirement.
Maximise resources to fund your retirement.
Minimise tax now and in retirement.
Invest money to ensure it will last throughout your retirement.
You would like to be self-sufficient and not rely the age pension.
You want control of your financial needs and gain guidance to make good financial decisions.
You would like a review on the return of the investment property.
You would like advice on superannuation including Bernies concessional contributions.

Risk Profile
All investments carry a degree of risk with them. High returning investments usually carry a high risk
of loss and vice versa. Although low returning investments with a perceived low risk can actually have
a very large risk in the sense that there was a lost opportunity to make a higher return by playing it
safe.
It is important for each investor to understand what their risk profile is. There are many factors that
may influence the risk that a particular investor would be willing to take when deciding what they
will invest in. Age, work security and income would all play a part in deciding an investors propensity
to take risks.
From the information you have provided regarding your understanding of investing and the risks
associated with investing, I believe your investor risk profile lies somewhere between Balanced and
Growth. In the lead up to retirement I believe it is important to ensure that your money is working
hard for you. I therefore recommend in the lead up to retirement you implement a growth strategy
to maximise your returns.

8|Page

5%
10%

Cash
Fixed interest

50%

Property
35%

Shares

The above pie graph indicates how the funds within your superannuation account would be invested
growth option strategy. Its important to note that a growth strategy may not be suitable in
retirement and your investment strategy would need to be reconsidered.
If you have any concerns regarding risks in investment, please discuss these with me. It is important
that you are comfortable with risk profile that we are suggesting.

Investment Strategies

Home Loan
As stated, one of your goals is to ensure that your mortgage is paid off at retirement. Currently you
are paying a total of $30504.00 per annum of which you have stated will be fully paid off in
approximately 5 years. Obviously to achieve paying the mortgage off early your payments will need
to increase. This has a two prong effect whereby you will be mortgage free quicker and will reduce
the total amount of interest you would have otherwise paid.

From the information you have supplied, I have assumed that you pay your mortgage monthly and
have estimated the interest rate you are currently paying to be 5.63% per annum. This means your
mortgage will be paid off at current repayments in 5 years and 10 months.

As you both already enjoy an unaccounted surplus of income after tax, to ensure that the mortgage
is paid off prior to retirement I recommend that the mortgage repayments be changed from monthly
to weekly and increased to $800.00 per week. This will ensure that the mortgage is paid off in exactly
four years.

9|Page

By implementing this recommendation, comparatively per year Bernie and Sarah will need to pay an
additional $11096.00 off the mortgage. By doing this they will not only be mortgage free by
retirement but will have saved $8363.35 in interest.

Inheritance
In regards to the $100000.00 inheritance Jessica is to receive from her mother, I recommend that the
money is used to make a non-concessional contribution into Jessicas account to increase her
superannuation from $100000.00 to $200000.00. This will help maximise income generated by her
superannuation on retirement. I will discuss the impact this will have later.

Superannuation
Superannuation in Australia represents one of the most tax effective ways to save for your
retirement. Contributions to superannuation are made up of two types being concessional and nonconcessional.
Concessional contributions include superannuation guarantee contributions, salary sacrifice
contributions and personal concessional. Concessional contributions are tax deductable and are
taxed on entry at a flat rate of 15%. From the 1st of July 2014 a cap of $35000.00 for concessional
contributions was introduced for people over the age of 49 at the 30th of June 2014. Concessional
contributions in excess of the cap attract an additional 31.5% tax in addition to the 15% tax.
Non-concessional contributions are those contributions made from your own funds without claiming
a tax deduction. These contributions could come from the sale of assets, an inheritance or a lotto
win. As with concessional contributions, at the 1st of July 2014 a cap of $180000.00 was introduced
for non-concessional contributions. People under the age of 65 can contribute up to $540000.00 by
bringing forward the two following years contributions. Any non-concessional contributions made in
excess of the cap will be taxed at 47%.

Sarah Tarbell
The only concessional contribution made to Jessicas superannuation at the moment is the
superannuation guarantee paid by her employer. This totals $2700 per year. Under the concessional
contribution rules this leaves an additional $32300 that she can contribute as a concessional
contribution.
Salary sacrificing is when an employee arranges to take part of their normal salary as superannuation
rather than cash. These contributions are paid into the employees superannuation account before
income tax is deducted. The employer receives a tax deduction for the superannuation contribution
and the 15% contribution tax applies. Salary sacrificed contributions count towards the employees
concessional contributions cap of $35000.
I recommend that Jessica renegotiates her salary with her employer to begin salary sacrificing a
portion of her wage where tax effective to increase her concessional contributions. The following
table illustrates the change in income for Sarah as well as the increase in superannuation
contributions and decrease in income tax payable.
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Sarah Tarbell
Pre-tax Income

Before Strategy

After Strategy

$39750

$39750

Less Salary Sacrifice

$21550

Taxable Salary

$39750

$18200

Less Tax

$4465

$0.00

Net After-tax Income

$35285

$18200.00

Medicare has not been taken into account when calculating the income tax payable.

As you can see Jessica will now be contributing an additional $21,550on top of the $2700 that her
employer already contributes as part of her superannuation guarantee payments. This brings the
total of her concessional contributions to $24250. I do not recommend salary sacrificing any more
than $21,550 as it is not tax effective. Jessicas marginal rate of tax above $18200.00 is 19% for every
dollar. Salary sacrificing more than $21,550 would bring her income below the tax free threshold of
$18200.00 where no tax is payable. If she was to do so, those additional contributions above $21,550
would be subject to the 15 % contributions tax.

Its important to note that the $21,550 would be subject to the 15% contributions tax. This would
total $3232.50 making a tax saving overall of $1232.50 per year after implementing the salary
sacrificing strategy. The salary sacrificing strategy has also reduced her net after-tax income to
$18200.00. This will need to be taken into account when assessing how much money is available for
Bernie to make non-concessional payments.

Below is a contributions schedule set to illustrate how the increase in superannuation contributions
will affect Sarah total fund amount on retirement? I have calculated the 2014-2015 salary sacrifice
amount as that portion of the year that Sarah would be able to increase her salary sacrificed
concessional contributions starting from March 1st 2015. I have also factored in Sarah contributing
the $100000 left to her by her mother as a Non-concessional contribution. By factoring an average
return of 6% on the June 30 balance from investments within the fund, over the five financial years
to retirement Sarahs fund will have increased to $369072.53

11 | P a g e

Sarah Tarbell

2014-2015

2015-2016

2016-2017

2017-2018

2018-2019

1st July Fund Balance

$100000.00

$216630.05

$251477.10

$288414.98

$327569.13

SGC 9%

$2700.00

$2700.00

$2700.00

$2700.00

$2700.00

Salary Sacrifice
contributions

$7183.33

$21550.00

$21550.00

$21550.00

$21550.00

Less 15% Contributions

Tax

$1482.50

$3637.50

$3637.50

$3637.50

$3637.50

Net After-tax total

$108400.83

$237242.55

$272089.60

$309027.48

$348181.63

Plus Non-concessional
Cont.

$100000.00

Fund Total at 30 June

$208400.83

$237242.55

$272089.60

$309027.48

$348181.63

$8229.22

$14234.55

$16325.38

$18541.65

$20890.90

$216630.05

$251477.10

$288414.98

$327569.13

$369072.53

Average 6% return after

tax
Total of fund

Bernie Tarbell
Although Bernie has been contributing $10000to his super every year, the reality is that considering
the salary he is earning it would not equal what the superannuation guarantee contribution (SGC)
would be if Bernie was employed on a wage (Currently 9.5% of salary). Because of this I have
investigated ways to which Bernie can increase his contributions as well as reduce his income tax. As
stated above the maximum concessional contribution that can be made in any financial year is
$35000 for individuals over 49 years old. I plan to increase Bernies concessional contributions to this
amount.

As Bernie has reached his prescribed preservation age of 55, he is now entitled commence what is
known as a transition to retirement account based pension or TRAP. TRAPs can be used to create a
tax free income after age 60 while a person continues to work fulltime. By commencing a TRAP,
Bernie will be able to salary sacrifice any excess income into super. It is important to understand that
on commencement of a TRAP No lump sums can be taken and the maximum pension that can be
taken is 10% of the capital base. As well as these conditions, as Bernie is aged between 60 and 65 for
the 2014-2015 financial year the minimum payment for that year is calculated at 4% of the account
balance as at July 1st.

I recommend that Bernie transfers $50000.00 into a TRAP to gain the maximum possible benefit
available to him. This will leave $220000.00 in an accumulation fund to which Bernie will continue to
contribute to. To understand the benefits of a TRAP I will first demonstrate the taxation impact from
Bernies current scenario of salary sacrificing $10000.00 into super to then implementing a TRAP

12 | P a g e

whilst increasing his concessional contributions to the maximum of $35000.00 per year. Bernie will
draw $10000.00 from his TRAP to offset his now lower after tax income.

Before Strategy

After Strategy

Pre-tax Income

$144750

$144750

Less Salary Sacrifice

$10000

$35000

Taxable Salary

$134750

$109750

Less Tax

$41504

$28554

Net After-tax Income

$93246

$81196

NIL

$10000

$93246

$91196

TRAP Income
Total After tax Income

Points to note from the comparison outlined in the table above:

Income tax calculations do not include Medicare.

An additional $25000 concessional contribution was made to Bernies accumulation fund.
After the strategy was implemented, income tax was reduced by $12950. Its important to
remember that this does not reflect the true applicable tax saving. The additional $25000
paid as a concessional contribution attracts a 15% contributions tax totalling $3750.00
reducing the overall tax saving to $9200.00.
Because Bernie is aged 61 the income derived from the TRAP is tax free.
After the strategy was implemented Bernie was only $2050.00 worse off in his total after tax
income.
After the strategy was implemented Bernie is now making the maximum allowed
concessional contribution of $35000 per year.
After the strategy is implemented Bernies superannuation will have a net increase of
$25000.00 per year before contributions tax is accounted for.

As Bernie is now contributing $35000.00 as a concessional contribution which is the most allowed,
any further contributions to his superannuation will need to be in the form of non-concessional
payments. As stated above, non-concessional contributions are those made from after tax earnings
that have had no tax deduction claimed. The maximum amount allowed to be contributed is $180000
per annum.

To calculate how much Bernie will be able to contribute we will need to revisit how much after tax
dollars Bernie and Sarah will have spare after implementing the TRAP, salary sacrifice and increasing
13 | P a g e

their Mortgage repayments. The table below outlines the new outcomes after implementing the
recommendations above.

Bernie

Sarah

Combined

Gross Salary

$140000

$30000

$170000

Investment Income

$4750

$9750

$14500

Less Salary Sacrifice

$35000

$21550

$56550

Taxable Salary

$109750

$18,200.00

$127950

TRAP Income

$10000

$0.00

$10000

Les Tax

$28554

$0.00

$28554

Net Income

$91196

$18200

$109396

Mortgage

$20800

$20800

$41600

Mortgage on Investment
Property

$8900

Household

$21000

$21000

$42000

Total Expenditure

$50700

$41800

$92500

Annual Income/Deficit

$40496

-$23600

$16896

Less expenses

$8900

As above we can now see that there is still an after tax surplus of $16896. I recommend that Bernie
uses these funds to contribute to his superannuation fund as non-concessional contributions. Below I
have prepared a contribution table to outline the contributions Bernie will make leading up to
retirement. In the year 2014-15 I have assumed Bernie has made the additional contributions as of
the 1st March 2015.

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Bernie Tarbell

2014-2015

2015-2016

2016-2017

2017-2018

2018-2019

1st July Fund Balance

$270000

$323578.92

$381838.42

$454193.48

$520289.85

Less TRAP 1 March 2015

$10000

$10,000.00

$10,000.00

$10,000.00

$10,000.00

Total after TRAP

$260000

$313578.92

$371838.42

$444193.48

$510289.85

$0.00

$0.00

$0.00

$0.00

$0.00

Salary Sacrifice
contributions

$35000

$35000

$35000

$35000

$35000

Less 15% Contributions

Tax

$5250

$5250

$5250

$5250

$5250

Net After-tax total

$289750

$343328.92

$411588.42

$473943.48

$540039.85

Plus Non-concessional
Cont.

$16896

$16896

$16896

$16896

$16896

Fund Total at 30 June

$306646

$360224.92

$428484.42

$490839.48

$556935.85

Average 6% return after

tax

$16932.92

$21613.50

$25709.06

$29450.37

$33416.15

Total of fund

$323578.92

$381838.42

$454193.48

$520289.85

$590352.00

SGC 9%

The above table outlines the concessional and non-concessional contributions that Bernie will make
on his lead up to retirement. Factoring a modest after tax return on investments within the fund,
Bernie will retire with a fund total of around $590352.00. Please note that returns within the fund
are set as a guide only.

Bernie and Sarah

After implementing my recommendations I estimate upon retirement you will have approximately
$959424.35 as a combined total within your superannuation funds. This will provide Bernie and
Sarah with an estimated annual income of $49890.07. Please note I have not included drawing down
the lump sums stated as required in the first year of retirement from your super funds. Prior to
retirement I recommend a reassessment of your financial situation.

15 | P a g e

Investments outside of Superannuation

Regarding the investment property and managed funds held outside the superannuation fund I
recommend that they be held onto until retirement has commenced and both Bernie and Sarah have
ceased working. As the capital gains will be taxable, it is preferred that these will be realised after
both Bernie and Sarah have ceased working as any capital gain will count towards both Bernie and
Sarah assessable income. By waiting until after retirement to dispose of these assets, advantages
such as tax free thresholds and marginal rates of tax can be taken into account.
As only limited information has been given regarding the capital growth of the investment property
and the managed fund. It is only possible to make some assumptions as to the value of them at the
time of disposal.

Investment property
Simple calculations show that the investment property has increased at an average rate of 2.37% per
year. I have calculated this as follows:
$220000.00/$300000.00= .733
1 - .733 = .267
.2677 x 100 = 26.7%
This means that the house has grown by 26.7% since it was bought approximately 11.25 years ago
giving it an average growth of 2.373%.
Allowing it a little time to sell after retirement I am estimating the investment property to be worth
about $337000.00 in 5 years.

Managed Funds

The managed fund has only depreciated from its original purchase price. Using the same formula to
estimate the disposal price of the managed fund that I used with the rental property would mean
that the managed fund would be worth even less in 5 years then it is now. Although that may be the
case it is probably unlikely. The managed fund has probably had some bad years since it was
purchased and will more than likely make its way back up around the $100000.00 mark when it is
time to dispose of it in 5 years. I will be using $100000.00 to calculate the total capital gains.
Holiday House

I recommend that Thomas and Jessica make enquiries into renting their holiday house out when they
are not using it. They might find they can make some income from it offsetting its associated costs.

16 | P a g e

Capital Gains

Managed Fund

Investment Property

Total

Purchase Price

$100,000.00

$220,000.00

$320,000.00

Sale price

$100,000.00

$337,000.00

$437,000.00

$0.00

$117,000.00

$117,000.00

Capital Gain

The above table outlines the estimated sale price and corresponding capital gain. There is no capital
gain with the managed fund and all other earnings have already been taxed and accounted for up to
retirement. The investment property will make a capital gain of $117000.00. Because the investment
property has been owned for more than one year, Bernie and Sarah are entitled to a 50% reduction
when calculating their capital gains tax. Because the residential property was jointly owned between
Bernie and Sarah the reportable capital gain will be split between them and added to their taxable
income.

The capital gain will be treated as follows:

$117000.00 x 50% = $58500.00

$58500.00 / 2 = $29250.00

Sarah Tarbell

Bernie Tarbell

Pre-tax Income

$29,250.00

$29,250.00

Less Tax

$2,099.00

$2,099.00

Net After-tax Income

$27,151.00

$27,151.00

The above table indicates the tax that Bernie and Sarah will have to pay on disposal of the two
investments.

The table below indicates the total proceeds from the sale of both assets after capital gains tax and
liabilities are paid.
17 | P a g e

Managed Fund

Investment Property

Total

$100,000.00

$337,000.00

$437,000.00

Less investment loan

$0.00

$175,000.00

$175,000.00

Less Capital Gain tax

$0.00

$4,198.00

$4,198.00

$100,000.00

$157,802.00

$257,802.00

Sale price

Tax free proceeds

The estimated proceeds from the sale of both investment assets total $257802.00. I recommend that
the after tax proceeds of these investments be used to fund the first year lump sum requirements of
$55000.00 for the new car and holiday and the $80000.00 gifts to the children. After paying out
these lump sum payments Thomas and Jessica will be left with $122802.00 which I recommend the
contribute as a non-concessional contribution to either account to ensure any future earning the
money might make become tax free.

Disclosures and Disclaimers

This statement of advice has been prepared based on the information that you have provided. Any
inaccuracies or changes in that information may affect the desired outcomes. It is your responsibility
and in your best interests to ensure that all information you have provided is accurate.
The information contained in this statement of advice is only relevant to Bernie and Sarah Tarbell. No
responsibility will be given to any other person who uses this advice except for those it was intended
for.
As with all investments there is an element of risk attached. Glover Capital Financial planners provide
no guarantees on the future performance of investment ideas, products or advice. Figures contained
in this statement of advice are to be used as a guide only.
Clients must seek additional advice from an accredited accountant regarding taxation.
The information contained in this statement of advice is only valid until the 28th of February.
Cost of Advice
Glover Capital Financial planners have developed this statement of advice for Bernie and Sarah
Tarbell. The cost to the client is a charge of $1800.00 plus GST. Further to this if the client chooses to
accept this statement of advice and proceed with implementing its recommendations, Glover Capital
financial planners will charge an ongoing annual fee of 1% of the total amount invested plus GST.
For example if one million dollars was invested then our annual charge would be $10000 plus GST.

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How to Proceed
Upon receipt of this statement of advice care must be taken to ensure you understand what is being
proposed and recommendations contained within the statement of advice.
You should ensure that you check the accuracy of all information contained within the statement of
advice and advice Glover Capital of any inaccuracies as soon as possible.
Once you are satisfied that the strategies described in the statement of advice will meet your
requirements, I suggest we meet at our offices no later than the 23rd of February 2015 so that you
can sign the authority to proceed. This will ensure that we can arrange those strategies to be
implemented by the 1st of March 2015 as outlined within the Statement of advice.

Authority to Proceed
By signing this statement of advice, I authorize Glover Capital financial planners to arrange the
implementation of the recommendations listed within this statement of advice.
I have read the statement of advice and I have no reason to believe that the information I have
provided to Glover Capital financial planners is in any way false or misleading.
I understand that the accuracy of the advice given within this statement of advice is dependent on
the accuracy of the information that I have provided. I understand that should my circumstances
change I will need to advice Glover Capital financial planners as soon as possible to avoid any
undesired outcomes.
I understand that the projected outcomes contained in this advice are to be used as a guide only. Out
comes may vary depending on market conditions and may be more or less then the outcomes
described in this statement of advice.
By signing this document, my authorisation for Glover Capital to proceed is limited to only those
recommendations contained within this statement of advice.
I accept cost of producing this document and ongoing costs outlined within the document as nonrefundable and payable in arrears at the start of each month.
I have been provide with a financial services guide.

Bernard Stephen Tarbell________________________________

Sarah Louise Tarbell___________________________________

Date________________________________________________

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