Chris and Tracy, I had considered that you are Semi conservation investors by looking at the risk profiler you had completed during our interview. In this section, there will be some investment strategies I recommend to you according to your risk profiler. These strategies will meet your objectives and match the asset allocations portfolio which decided based on your risk profiler. In this section, there are number of investment products which I recommended and un-recommend. Based on your risk profiler, I had chosen the best investment for you to choose.If you follow my recommendations, you will able to maximize your wealth and reach your financial goals more effectively.

These recommendations are my personal advice, there are no guarantee of the outcome of the return or lose into these investment products. I hope that you clearly understand the situation when I had explained to you in the interview. The expected return in the following section may various, these figures are an approximation and they are based on the historicity data. But I strongly believed that when you use my recommendations, your investment portfolio will achieve your financial goals and maximize your wealth.Recommendations $25,000 accessible cash During our interview, you had told me that one of your financial objectives is to have $25,000 accessible cash for any emergency use. By calculated your income statement, currently you had an access of $25,628 surplus. I recommend that you deposit that lump sum of money into ING DIRECT Savings Maximiser account. The ING DIRECT Savings Maximiser account will allow you to have liquidity and capital stability.

It is currently offering an interest rate of 7% per annual (Only apply between Monday 17 September 2007 and Monday 31 December 2007).This saving account have no fixed term no minimum deposit, withdrawal or balance, no bank fees, and you will able to access the account 24 hour, 7 day per week. But interest rate may vary if market interest rates change. (Please view the following web site for conditions and further information, http://www. ingdirect.

com. au/personal/savings_max. htm ) Financial asset arrangement The current bank account is paying 0% interest rate per annual. The current inflation rate (Quarterly based, based on June 2007) is 2.

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1%, and expected to rise to 3%. So currently the $5,000 in the 0% interest bank account is making a loss.Also the cash management trust is only offering an interest of 2. 65% per annual, but the expected inflation rate will rise to 3%. This mean by the end of year 2007, the cash management will be making a loss of 0. 35%.

The current share portfolio did not achieve the purpose of diversification. By looking at the current share portfolio that you held, it is very fluctuating and either Chris or Eva is monitoring the share portfolio. This created an uncertainty for both Chris and Eva, when both of you worry about the fluctuations of return according to the risk profile.I recommended you withdrawn $5,000 from the bank account, sell Chris share portfolio and withdrawn $60,000 from the Cash Management trust. After paying the debt on both the family house mortgage and the credit card debt, you will leave with a lump sum of $185,420.

This lump sum can be invested into the managed funds, which will be explained more details in the following sections. Debt repayment Currently you had a house mortgage loan which is secured against your family home; I recommended you should repay half of this loan of the total of $40,000.The reason is because when you can’t pay back the interest crated by this loan, you may have a risk of losing your family house.

As the interest rate may expect to rise in the future, the interest charge against your mortgage may also rise. Currently you are paying $6,368 per annual of interest, when you reduce your mortgage to $40,000; you will only need to pay $3,184 interest per annual. So I recommend you repay $40,000 of your mortgage loan using the Cash management trust account. Another debt you had is the credit cards debt.It must be repaid immediately. The interest charged against credit cards debt is significantly high; you are currently paying $1,000 or more per annual. As the interest rate is calculated daily, the fluctuation of the interest rate will affect your amount of payment against the debt. So I recommend you to repay all your credit cards debt as soon as possible, by using the Cash management trust account.

All the financial arrangement of your asset will be shown clearly on the overview of investment strategy, in the further section.Managed funds On one of your objectives, is for me to recommend asset classes and maintain a portfolio that will make growth. I recommend you to invest $185,420 in to the following managed funds; these funds will be managed by professionals. It will be more effective for your investment, as the fund managers had the knowledge to invest. According to the interview, I knew either Chris or Eva had monitoring your share portfolio, so it is better to sell the share portfolio and invest into these funds I personally recommended.

By grouping a large pool of money, the managed funds will able to invest assets that individuals can not invest in. These funds achieved the structure of diversification across asset classes, diversification can reduce the risk of fluctuation in return, which I had discussed in the pervious section. Recommended managed funds The following recommended funds are mainly provided by 2 companies, they are UBS Global Asset Management (Australia) Ltd and Russell Investment Group Pty Ltd. Both companies are very successful of investing in funds and they are both highly recommended by a lot of professionals.

They provided a range of investment combination for investors to choose from. Some of these funds may need to be locked up once you had entered the investment plan. So please make sure you choose carefully and you will have enough liquidity for your personal use. The following funds will not have any entry fee. But the maintain and ongoing fee on these funds will be ranged from 0.

38% to 1. 65% per annual. These fees will be deducted from your investment account to the responsible fund managers.