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Justify a proposed comprehensive and integrated nancial service package that is appropriate for the financial needs of two customers at different life stages.

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Introduction

Transfer-Encoding: chunked Justify a proposed comprehensive and integrated ï¬nancial service package that is appropriate for the financial needs of two customers at different life stages. I have now finished all my training to be a financial adviser. My manager would like me to write a report to advise and suggest an integrated financial service package to two different customers. My first customer that I will be providing an integrated financial service package to is Ifter Ali who is 21 years old. Ifter is in his last year of university studying Business Studies whilst living at home with his mother. He has informed me that he would like to own property as soon as possible but has limited understanding of finance. Ifter has a student loan of £13,000 an overdraft of £1,000. In 4 months he will be going onto the PWC graduate trainee programme with a starting salary of £25,000. Firstly, Ifter already has a current account due to having an overdraft of £1,000 and therefore I recommend that he keeps the account open. Once his first salary goes into his current account the overdraft will be automatically be paid off. However, Ifter should be aware that he will be getting paid a little over £2083 a month and once the overdraft has been paid off he will only have a small amount of money left. ...read more.

Middle

He has been married for 6 years and has two daughters ages 6 and 6 months and he wants to have enough money to pay for their weddings in the future. David doesn’t believe in stocks and shares due to a lack of understanding. And lastly, he owns a property with a mortgage and would like to have a property abroad when he retires. David’s company has revenue of approximately £100,000 per annum. He is the only earner in his household as his wife doesn’t work and he has young children. He has a property worth £280,000 with a floating rate mortgage of £150,000. He has no life assurance and has savings in a low interest company of £5,000. He has a credit card debt of £1,000, no pension provision and £5,000 worth of premium bonds but rarely wins. David already has a current account is which the money he earns through his business is deposited into his account. It would be a good idea to keep this account and make use of the features a current account has. David could make use of the overdraft services. He will need to contact the bank to see how much money he can take out. Overdrafts will be automatically repaid once his salary is paid in but he will have to pay interest. He can also make use of direct debits with his current account. ...read more.

Conclusion

The investor is effectively the beneficiary under the trust. You can buy or sell unit trust units through the fund manager. Their value moves in line with the overall value of the fund, which in turn moves in line with changes to the underlying share prices in the fund. Unit trusts are a very convenient and a low cost way of investing in markets which you otherwise would have found difficult to access. Also the average returns from unit trust companies compare very favourably with returns from more traditional investment products and highly qualified portfolio manager specialists make investment decisions, and manage the unit trusts so you do not have to do it. There is the advantage of liquidity and accessibility, because you can cash in all or part of your investment if necessary. Hopefully with better understanding on investment products, David will invest in shares or unit trusts to gain a better return. Lastly, David is interested in purchasing a property abroad ready for his retirement. Although David currently doesn’t have enough funds to buy a house, there are ways in which he could. David has £150,000 left to pay on his floating rate mortgage. If David would like to buy a house abroad then I suggest he gets a re-mortgage. This will then give him £130,000 which he can easily buy a house abroad due to the low costs. If these two customers take my recommendations into consideration, they will be able to manage their finances well and be able to set out the things they want to achieve. ...read more.

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