Commence an Investment Portfolio with a Margin Lending Facility........................................20

 [Pay total debt] You will repay all debt in preparation for your retirement / other.

Points to Consider:

 You will no longer have access to $XXX in your cash / investment / savings account.  [Pay total debt] You will not have access to this debt for future borrowings. You will need to reapply for finance should you need it.  There may be fees associated with making a lump sum payment against your loan.  There may be limits on how much you can pay to your loan as a lump sum. This is especially the case with fixed loans.  You may not be able to redraw this lump sum payment in a time of financial need.  We have not considered in this advice if your current mortgage is the right mortgage for your situation. This advice only focuses on the cash flow impact to your situation.

32. Use your Home Equity to Invest

We recommend that you borrow against the equity you have in your home, to invest in a diversified investment portfolio. We recommend that you initially draw $XXX and we will review this each year to look at topping up your investments with additional drawdowns. Further information regarding the selection of the investment portfolio will be explained in detail later in this SoA.

Benefits:

 Using debt to increase your investment portfolio gives you access to potentially increased capital growth and income.  Loan interest for investing is tax-deductible to the borrower. You can bring forward this tax deduction by prepaying the annual interest each financial year.  Having a larger investment portfolio with the use of debt allows you to increase the diversity of investments which in turn reduces your risk by spreading the risk across different asset classes.

Points to Consider:

 Your home will be security for your investment portfolio.  Interest rates on investment lending facilities are higher than other loans such as your mortgage. The current variable rate is XXX% and the fixed rate for XX years is XXX%.  We have looked at your cash flow to make sure that if interest rates are to increase by 3%, you could still afford to meet the repayments. Please refer to our financial projections at the end of this SoA for further details.  Just as having an increased portfolio size can magnify your gains, they can also magnify your losses when the markets go down. Volatility in your portfolio will be higher. It is important that you are comfortable with this type of strategy. A minimum of 7 years is recommended for this type of strategy.  Interest rates are subject to change. [Variable rate] As the recommended rate is variable, the rate can change at any time. [Fixed rate] At the end of the fixed period, the interest rate may have changed significantly, impacting future cash flow.  Borrowing to invest requires strong cash flow to support the strategy. Costs can be significant if the strategy

has to be unwound prematurely. Please contact our office for immediate review if your cash flow changes.

33. Establish your Estate Plan

We recommend that you seek legal advice to undertake a complete review of your Estate Planning needs including:  Establish your Will/s.  Establish your Powers of Attorney including Enduring (financial / medical), Limited and General.  Consider an Advance Health Care Plan.  [Testamentary Trust] Look at inclusion of a Testamentary Trust within your Will/s.  Review of all significant assets and beneficiaries.  Discussion regarding solutions for possible challenges to your Estate.  [Binding Death Nominations] A review of superannuation / pension death benefit nominations to ensure they are up to date / in place.

Benefits:

 Establishing a valid Will can assist in your assets being distributed according to your wishes upon death.