30 July 2015
Authorised Representative No. XXXX
<Insert address>
<Insert contact number>
<Insert email address>
Authorised representative of:
Dover Financial Advisers Pty Ltd
AFS License No. 307248
ABN: 87 112 139 321
2/616 Balcombe Road, Black Rock VIC 3193
PO Box 209, Black Rock 3193 VIC
Telephone: (03) 8516 5350; Fax: (03) 8677 9583

Scope of this statement of advice “SOA” and summary of advice
This SOA confirms the advice provided at our meeting and contains the information you need to decide whether to rely on our advice. This is a limited purpose SOA and only covers the matters discussed and covered in this SOA. It does not discuss any other matters.
Financial services guide “FSG”
A FSG setting out the services we offer, our fees and the complaint process was provided to you at our meeting. You can access another copy of our FSG here: <Insert link to your FSG>
Your financial profile
Your financial profile is as follows:
Your net assets
Home/cash owed Settlement due soon
Australian Super
Superannuation
SMSF
Cash ING
Shares
Net Assets
$1,600,000
$200,000
$255,000
Deposit on sale of home $ 278,000
Shares and securities $ 396,000
$2,729,000
Other relevant matters Fred
Age 84
Health
Marital status
Reasonably healthy
Married
Dependants
Income
Occupation
Milly
79
Healthy
No dependants (five adult children)
Retired Retired
First, some words of reassurance
Your assets are worth about $2,700,000 and are comprised of a mix of cash or near cash, being the amount due to you on the sale of your home, and various conservative diversified blue chip securities.
You have no debts other than the obligation to pay $463,000 as you move into your retirement home.
You are in the top 5% of the wealth population, and you have more than enough to provide comfortably for each of you for the rest of your lives. Well done. There was no silver spoon and you have worked hard and long for what you have now.
You do not spend much, and realistically your assets will continue to grow in value for the rest of your lives. “The rest of your lives” could easily be another 15 years or more, because even though Fred recently suffered a stroke, and is 84 he is still otherwise in good health, and Milly at 79 is almost fitter than ever. Australian women are living on average more than 90 years and Milly could easily go longer than most, so your investment time frame is at least another ten years and probably a bit longer.

Second, you need a plan
You need a plan to invest your monies over the next ten or more years.
The question of what to invest in is easily dealt with. We recommend you retain your investments in
Australian Super, your SMSF and in your own name, and that your cash and the settlement amount be applied to the new age care facility bond of $463,500, $50,000 in the ING account with the balance
(about $1,186,500) invested in Vanguard Australian Shares Index Fund (VASIF) in your joint names.
Your combined wealth is more than $2,700,000 and realistically this amount will continue to grow by at least 5% a year, if not a lot more. Australian shares averaged 9.5% a year in the twenty years to 31
December 2014, according to the Russell ASX 2015 Long Term Investing Report (refer page 7) and although past returns do not dictate future returns this gives you an idea of long term averages.
You do not spend much, with a built in Scottish frugality, so realistically your wealth will grow each year and there will be on on-going question of “what to invest in now?”. The answer is more VASIF.
And the simplest way to do this is to tick the box for automatically reinvesting the distributions.
The question of who should invest the monies is more difficult. Fred has his full faculties now, but at age 84 there is every prospect these will start dimming soon. Motivation could become an issue too.
Milly is younger at age 79 but has no experience or interest in investing. So something has to change.
You can access the VASIF product disclosure statement here: Vanguard PDSs . We recommend you read this document before proceeding with our recommendations and that you generally learn about the idea of index funds. A basic Google search will generate more than enough reading, and in particular we recommend you peruse Vanguard’s website for information on indexing.
Third, you need a power of attorney (financial)
The obvious and logical change is for you appoint two of your adult children, say Sally and Kevin, to act as your joint attorney under an enduring power of attorney (financial).
To keep things simple this document will be prepared and signed after 1 September 2015, when new rules apply in Victoria, and will be effective immediately, although you should ask Sally and Kevin to only exercise their power if they believe you are not able to make decisions for yourselves.
You can learn more about an enduring power of attorney (financial) here: Office of the Public Advocate
EPOAMT .
Fourth, you also need an enduring power of attorney (medical treatment)
You should also appoint your children Sally and Kevin as your joint attorney under an enduring power of attorney (medical treatment).
This document should also be prepared after 1 September 2015, and as you know it empowers Sally and Kevin to make decisions regarding your medical treatment. This is a big responsibility and I recommend you each write Sally and Kevin a short e-mail, with a cc to your other children, setting out your thoughts and concerns, and summarizing your wishes. This will be a useful guide for them if they have to make some difficult decisions.
You can learn more about an enduring power of attorney (medical treatment) here: Office of the
Public Advocate EPOAMT .

Costs preparing the powers of attorney
Our fee for facilitating these documents including Dover Legal’s costs and generally acting as your advocate in the will preparation process will be $1,700 plus GST.
We will pay Dover Legal’s fees for you and these are covered in our fee.
Gifts to your children
Milly suggested a gift of $40,000 cash to each of your five children.
I think that is a great idea, and it’s something I often suggest to clients. Your children are in their “very expensive” phase and, in summary, I expect helping financially now will bring you more pleasure than anything else. Certainly $200,000 out of $2,700,000 is not risking your retirement comfort.
We often suggest such gifts be documented as loans to guard against relationship failures or bankruptcy, but we see no reason for doing so here.
A simple idea for handling your investments
I recommend you provide each of Sally and Kevin with your log in details and passwords for your shares, superannuation and Vanguard accounts, so they can regularly check your asset balances and generally make sure everything is in order.
It’s a good idea for Sally and Kevin to set the new Vanguard account up for you and to include themselves in the access details.
I also recommend you put all your investment related mail in one file (either a paper file or an e-file) and that Sally and Kevin each check the file regularly, just to make sure all is in order.
Regular meetings
Your investments are in good shape, safely conservative and diversified. There is no reason to sell any of them for the foreseeable future. However, this may change and I suggest I meet with Fred, Sally and Kevin say every six months to discuss the portfolio. Radical changes are extremely unlikely. Any changes should be more like fine tuning.
My fee for preparing for an attending this meeting will be $300 plus GST.
Your old age pension
You will lose the remaining part pension of about $20 a week as you complete the sale of your home.
Congratulations: you are no longer old age pensioners and you are now officially self-funded retirees.
You are slowly moving up the socio-economic totem pole!
Wills and estate planning generally
Kevin tells me that your wills are about 15 years old. I suggest you check them, and if they say on death everything to the survivor, and on the death of the survivor everything to the five children in equal shares, then there is no need to change them.
If they say something else I suggest you ring me in the first instance. Feel free to send me a copy of the wills too, and I will check them and get back to you as soon as I can.
If your wills need to be changed I will arrange fresh wills for you through Dover Legal.

Costs of preparing fresh wills
Our fee for facilitating these wills including Dover Legal’s costs and generally acting as your advocate in the will preparation process will be $1,700 plus GST.
We will pay Dover Legal’s fees for you and these are covered in our fee.
Why our advice is appropriate to you and why it is in your best interests
Our advice means you will acquire a financial product that is expected to generate reasonable returns relative to the market, and which has a moderate level of risk. Your overall financial position will be enhanced. This means you will be in a better position than otherwise.
Best interests duty and the appropriateness of our advice
I believe this advice is in your best interests and appropriate to your circumstances, in that it is fit for its purpose , is likely to satisfy your relevant circumstances and financial objectives and is likely to put you in a better position according to the standard of a reasonable advice provider.
If for any reason you are concerned that this advice is not in your best interests or is not appropriate to your circumstances and financial objectives you should not act on this advice and you should inform me of your concerns in writing immediately.
Fees and other costs
The fee for attending the meeting and preparing this SoA is $400.
Other fees are as specified elsewhere in this SoA.
Capacity in which advice is provided
Dover Financial Advisers Pty Ltd (“Dover”) ABN 87 112 139 321 is the holder of an Australian Financial
Services License AFSL 307248. Dover is located at Suite 2/616 Balcombe Road.
I am an authorised representative of Dover. Financial product advice is provided by me in my capacity as an authorised representative of Dover Financial Advisers Pty Ltd and not in any other capacity. I am authorised by Dover to provide advice on financial planning, superannuation, managed investments, securities, self-managed superannuation funds and personal risk insurance.
Review by Dover Legal Pty Ltd
Dover Legal Pty Ltd is an Australian Legal Practitioner. Dover Legal Pty Ltd has reviewed this statement of advice including the materials in Dover's Client Protection Policy and has confirmed that it is in your best interests and is appropriate to your circumstances.
A copy of an e-mail to me from Dover Legal Pty Ltd confirming this is available on request.
Dover’s Client Protection Policy
Dover’s Consumer Protection Policy comprises additional conditions of our contract with you to give you the maximum protection possible under the Corporations Act and related law.
You must read and understand Dover's Client Protection Policy before acting on the recommendations in this statement of advice. You can do this by clicking on this link: Dover's Client Protection Policy .

Acceptance of my advice
Please email me at name@dover.com.au
with a copy to compliance@dover.com.au
to record your acceptance of my recommendation and instruct me to implement my advice. Include your name(s), the date of this statement of advice and any additional concerns or instructions you may have.
By accepting my recommendations you confirm you have:
1. understood this statement of advice, Dover’s Client Protection Policy, the Financial Services
Guide and the product disclosure statements provided to you in this statement of advice;
2. accepted the additional conditions of our contract in Dover's Client Protection Policy ; and
3. received a clear and prominent disclosure of the limits of my authority from Dover as set out in Dover's Client Protection Policy .
I will not implement the advice until you instruct me to do so.
Please do not hesitate to contact me should any aspect of my advice not be clear or if you feel a further meeting is necessary to better understand my advice.
Yours faithfully
Name of adviser