You are seeing a new client Bob who would like to discuss his financial goals and objectives. Bob for you the following

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Scenario 3

You are seeing a new client Bob who would like to discuss his financial goals and objectives.
Bob for you the following assets:

  • everyday cash account:
$5,000
  • cash savings (0.6%):
$25,000
  • investment portfolio:
$100,000
  • holiday portfolio:
$20,000
  • children’s education fund:
$60,000
  • credit card debt (18.5%):
$25,000
  • superannuation:
$234,000

 

He is keen for you to review his investment portfolio only, as he has recently suffered some losses that he does not want to realise by selling the shares, as the shareholdings provide good income. Bob also does not like the loss! You suggest that he also should consider his overall financial position and investments, including repaying his debt. Bob however says he likes to keep that separate and is making repayments of $500 per month.

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