Regression Analysis

REGRESSION ANALYSIS Correlation only indicates the degree and direction of relationship between two variables. It does not, necessarily connote a cause-effect relationship. Even when there are grounds to believe the causal relationship exits, correlation does not tell us which variable is the cause and which, the effect. For example, the demand for a commodity and its price will generally be found to be correlated, but the question whether demand depends on price or vice-versa; will not be answered by correlation. The dictionary meaning of the ‘regression’ is the act of the returning or going back. The term ‘regression’ was first used by Francis Galton in 1877 while studying the relationship between the heights of fathers and sons. â€Å"Regression is the measure of the average relationship between two or more variables in terms of the original units of data. † The line of regression is the line, which gives the best estimate to the values of one variable for any specific values of other variables. For two variables on regression analysis, there are two regression lines. One line as the regression of x on y and other is for regression of y on x. These two regression line show the average relationship between the two variables. The regression line of y on x gives the most probable value of y for given value of x and the regression line of x and y gives the most probable values of x for the given value of y. For perfect correlation, positive or negative i. e. for r=  ±, the two lines coincide i. e. we will find only one straight line. If r=0, i. e. both the variance are independent then the two lines will cut each other at a right angle. In this case the two lines will be  ¦to x and y axis. The Graph is given below:- We restrict our discussion to linear relationships only that is the equations to be considered are 1- y=a+bx – x=a+by In equation first x is called the independent variable and y the dependent variable. Conditional on the x value, the equations gives the variation of y. In other words ,it means that corresponding to each value of x ,there is whole conditional probability distribution of y. Similar discussion holds for the equation second, where y acts as independent variable and x as dependent variable. What purpose does regression line serve? 1- The first object is to estimate the dependent variable from known values of independent variable. This is possible from regression line. – The next objective is to obtain a measure of the error involved in using regression line for estimation. 3- With the help of regression coefficients we can calculate the correlation coefficient. The square of correlation coefficient (r), is called coefficient of determination, measure the degree of association of correlation that exits between two variables. What is the difference between correlation and linear regression? Correlation and linear regression are not the same. Consider these differences: †¢ Correlation quantifies the degree to which two variables are related. Correlation does not find  a best-fit line (that is regression). You simply are computing a correlation coefficient (r) that tells you how much one variable tends to change when the other one does. †¢ With correlation you don't have to think about cause and effect. You simply quantify how well two variables relate to each other. With regression, you do have to think about cause and effect as the regression line is determined as the best way to predict Y from X. †¢ With correlation,  it doesn't matter which of the two variables you call â€Å"X† and which you call â€Å"Y†. You'll get the same correlation coefficient if you swap the two. With linear regression, the decision of which variable you call â€Å"X† and which you call â€Å"Y† matters a lot, as you'll get a different best-fit line if you swap the two. The line that best predicts Y from X is not the same as the line that predicts X from Y. †¢ Correlation is almost always used when you measure both variables. It rarely is appropriate when one variable is something you experimentally manipulate. With linear regression, the X variable is often something you experimental manipulate (time, concentration†¦ and the Y variable is something you measure. Regression analysis is widely used for  prediction  (including  forecasting  of  time-series  data). Use of regression analysis for prediction has substantial overlap with the field of  machine learning. Regression analysis is also used to understand which among the independent variables are related to the dependent variable, and to explore the forms of these relationships. In restricted circumstances, regression analysis can be used to infer  causal relationships  between the independent and dependent variables. A large body of techniques for carrying out regression analysis has been developed. Familiar methods such as  linear regression  and  ordinary least squares  regression are  parametric, in that the regression function is defined in terms of a finite number of unknown  parameters  that are estimated from the  data. Nonparametric regression  refers to techniques that allow the regression function to lie in a specified set of  functions, which may beinfinite-dimensional. The performance of regression analysis methods in practice depends on the form of the data-generating process, and how it relates to the regression approach being used. Since the true form of the data-generating process is not known, regression analysis depends to some extent on making assumptions about this process. These assumptions are sometimes (but not always) testable if a large amount of data is available. Regression models for prediction are often useful even when the assumptions are moderately violated, although they may not perform optimally. However when carrying out  inference  using regression models, especially involving small  effects  or questions of  causality  based on  observational data, regression methods must be used cautiously as they can easily give misleading results. Underlying assumptions Classical assumptions for regression analysis include: ? The sample must be representative of the population for the inference prediction. ? The error is assumed to be a  random variable  with a mean of zero conditional on the explanatory variables. ? The variables are error-free. If this is not so, modeling may be done using  errors-in-variables model  techniques. ? The predictors must be  linearly independent, i. e. it must not be possible to express any predictor as a linear combination of the others. SeeMulticollinearity. The errors are  uncorrelated, that is, the  variance-covariance matrix  of the errors is  diagonal  and each non-zero element is the variance of the error. ? The variance of the error is constant across observations (homoscedasticity). If not,  weighted least squares  or other methods might be used. These are sufficient (but not all necessary) conditions for the least-squares estimator to possess desirable propertie s, in particular, these assumptions imply that the parameter estimates will be  unbiased,  consistent, and  efficient  in the class of linear unbiased estimators. Many of these assumptions may be relaxed in more advanced treatments. Basic Formula of Regression Analysis:- X=a+by (Regression line x on y) Y=a+bx (Regression line y on x) 1st – Regression equation of x on y:- 2nd – Regression equation of y on x:- Regression Coefficient:- Case 1st – when x on y means regression coefficient is ‘bxy’ Case 2nd – when y on x means regression coefficient is ‘byx’ Least Square Estimation:- The main object of constructing statistical relationship is to predict or explain the effects on one dependent variable resulting from changes in one or more explanatory variables. Under the least square criteria, the line of best fit is said to be that which minimizes the sum of the squared residuals between the points of the graph and the points of straight line. The least squares method is the most widely used procedure for developing estimates of the model parameters. The graph of the estimated regression equation for simple linear regression is a straight line approximation to the relationship between y and x. When regression equations obtained directly that is without taking deviation from actual or assumed mean then the two Normal equations are to be solved simultaneously as follows; For Regression Equation of x on y i. e. x=a+by The two Normal Equations are:- For Regression Equation of y on x i. e. y=a+bx The two Normal Equations are:- Remarks:- 1- It may be noted that both the regression coefficient ( x on y means bxy and y on x means byx ) cannot exceed 1. 2- Both the regression coefficient shall either be positive + or negative -. 3- Correlation coefficient (r) will have same sign as that of regression coefficient. Regression Analysis REGRESSION ANALYSIS Correlation only indicates the degree and direction of relationship between two variables. It does not, necessarily connote a cause-effect relationship. Even when there are grounds to believe the causal relationship exits, correlation does not tell us which variable is the cause and which, the effect. For example, the demand for a commodity and its price will generally be found to be correlated, but the question whether demand depends on price or vice-versa; will not be answered by correlation. The dictionary meaning of the ‘regression’ is the act of the returning or going back. The term ‘regression’ was first used by Francis Galton in 1877 while studying the relationship between the heights of fathers and sons. â€Å"Regression is the measure of the average relationship between two or more variables in terms of the original units of data. † The line of regression is the line, which gives the best estimate to the values of one variable for any specific values of other variables. For two variables on regression analysis, there are two regression lines. One line as the regression of x on y and other is for regression of y on x. These two regression line show the average relationship between the two variables. The regression line of y on x gives the most probable value of y for given value of x and the regression line of x and y gives the most probable values of x for the given value of y. For perfect correlation, positive or negative i. e. for r=  ±, the two lines coincide i. e. we will find only one straight line. If r=0, i. e. both the variance are independent then the two lines will cut each other at a right angle. In this case the two lines will be  ¦to x and y axis. The Graph is given below:- We restrict our discussion to linear relationships only that is the equations to be considered are 1- y=a+bx – x=a+by In equation first x is called the independent variable and y the dependent variable. Conditional on the x value, the equations gives the variation of y. In other words ,it means that corresponding to each value of x ,there is whole conditional probability distribution of y. Similar discussion holds for the equation second, where y acts as independent variable and x as dependent variable. What purpose does regression line serve? 1- The first object is to estimate the dependent variable from known values of independent variable. This is possible from regression line. – The next objective is to obtain a measure of the error involved in using regression line for estimation. 3- With the help of regression coefficients we can calculate the correlation coefficient. The square of correlation coefficient (r), is called coefficient of determination, measure the degree of association of correlation that exits between two variables. What is the difference between correlation and linear regression? Correlation and linear regression are not the same. Consider these differences: †¢ Correlation quantifies the degree to which two variables are related. Correlation does not find  a best-fit line (that is regression). You simply are computing a correlation coefficient (r) that tells you how much one variable tends to change when the other one does. †¢ With correlation you don't have to think about cause and effect. You simply quantify how well two variables relate to each other. With regression, you do have to think about cause and effect as the regression line is determined as the best way to predict Y from X. †¢ With correlation,  it doesn't matter which of the two variables you call â€Å"X† and which you call â€Å"Y†. You'll get the same correlation coefficient if you swap the two. With linear regression, the decision of which variable you call â€Å"X† and which you call â€Å"Y† matters a lot, as you'll get a different best-fit line if you swap the two. The line that best predicts Y from X is not the same as the line that predicts X from Y. †¢ Correlation is almost always used when you measure both variables. It rarely is appropriate when one variable is something you experimentally manipulate. With linear regression, the X variable is often something you experimental manipulate (time, concentration†¦ and the Y variable is something you measure. Regression analysis is widely used for  prediction  (including  forecasting  of  time-series  data). Use of regression analysis for prediction has substantial overlap with the field of  machine learning. Regression analysis is also used to understand which among the independent variables are related to the dependent variable, and to explore the forms of these relationships. In restricted circumstances, regression analysis can be used to infer  causal relationships  between the independent and dependent variables. A large body of techniques for carrying out regression analysis has been developed. Familiar methods such as  linear regression  and  ordinary least squares  regression are  parametric, in that the regression function is defined in terms of a finite number of unknown  parameters  that are estimated from the  data. Nonparametric regression  refers to techniques that allow the regression function to lie in a specified set of  functions, which may beinfinite-dimensional. The performance of regression analysis methods in practice depends on the form of the data-generating process, and how it relates to the regression approach being used. Since the true form of the data-generating process is not known, regression analysis depends to some extent on making assumptions about this process. These assumptions are sometimes (but not always) testable if a large amount of data is available. Regression models for prediction are often useful even when the assumptions are moderately violated, although they may not perform optimally. However when carrying out  inference  using regression models, especially involving small  effects  or questions of  causality  based on  observational data, regression methods must be used cautiously as they can easily give misleading results. Underlying assumptions Classical assumptions for regression analysis include: ? The sample must be representative of the population for the inference prediction. ? The error is assumed to be a  random variable  with a mean of zero conditional on the explanatory variables. ? The variables are error-free. If this is not so, modeling may be done using  errors-in-variables model  techniques. ? The predictors must be  linearly independent, i. e. it must not be possible to express any predictor as a linear combination of the others. SeeMulticollinearity. The errors are  uncorrelated, that is, the  variance-covariance matrix  of the errors is  diagonal  and each non-zero element is the variance of the error. ? The variance of the error is constant across observations (homoscedasticity). If not,  weighted least squares  or other methods might be used. These are sufficient (but not all necessary) conditions for the least-squares estimator to possess desirable propertie s, in particular, these assumptions imply that the parameter estimates will be  unbiased,  consistent, and  efficient  in the class of linear unbiased estimators. Many of these assumptions may be relaxed in more advanced treatments. Basic Formula of Regression Analysis:- X=a+by (Regression line x on y) Y=a+bx (Regression line y on x) 1st – Regression equation of x on y:- 2nd – Regression equation of y on x:- Regression Coefficient:- Case 1st – when x on y means regression coefficient is ‘bxy’ Case 2nd – when y on x means regression coefficient is ‘byx’ Least Square Estimation:- The main object of constructing statistical relationship is to predict or explain the effects on one dependent variable resulting from changes in one or more explanatory variables. Under the least square criteria, the line of best fit is said to be that which minimizes the sum of the squared residuals between the points of the graph and the points of straight line. The least squares method is the most widely used procedure for developing estimates of the model parameters. The graph of the estimated regression equation for simple linear regression is a straight line approximation to the relationship between y and x. When regression equations obtained directly that is without taking deviation from actual or assumed mean then the two Normal equations are to be solved simultaneously as follows; For Regression Equation of x on y i. e. x=a+by The two Normal Equations are:- For Regression Equation of y on x i. e. y=a+bx The two Normal Equations are:- Remarks:- 1- It may be noted that both the regression coefficient ( x on y means bxy and y on x means byx ) cannot exceed 1. 2- Both the regression coefficient shall either be positive + or negative -. 3- Correlation coefficient (r) will have same sign as that of regression coefficient.

Brazilian culture Essay

Culture refers to the norms, values and conceptions which influences an individual’s behavior. They are usually not tangible things though they greatly affect or influence the reactions or response of an individual to certain circumstances. Different communities have different cultures which are usually expressed through the various artifacts and symbols as well as ceremonies and traditions. The national culture of a place is usually expressed through the language spoken, the religion practiced, the etiquette and attitudes of the people, body language as well a literature, arts and music in such a country. The national culture of a country influences the way things and business are carried out and as such the performance of different entities within the country. Brazilian culture Brazil is located in the southern America and it is characterized by different and diverse culture which is as a result of cultural and ethnic mixing between the Africans, the native Americans and the Portuguese which occurred during the colonial era which. Other groups of people which have greatly influenced the culture of Brazil are the Spanish, Arabs, the Germans and the Italian immigrants who settled in Brazil between the 19th and the 20th century. This diverse nature of Brazilian people has given rise to a national culture which is so diverse. Portugal however was the major country which greatly influences the culture of Brazil since it was its colonizer. During the colonization period, the Brazilian people were having close contact with the Brazilians especially because Portuguese colonizers inhabited Brazil in large numbers. The slaves who were mostly black Africans also influenced greatly the formation of the Brazilian culture (Nava & Lauerhass, 2006). During the colonial period, the Portuguese wanted the Brazilians to be civilized and thus introduced Portuguese language as well as Catholicism. Portuguese is the most widely spoken language in Brazil although Spanish is also spoken in some parts. English is the second language which is spoken after Portuguese. However, the Brazilian Portuguese is different from Portuguese which is spoken in Portugal and other Portuguese speaking countries. The Brazilian Portuguese contains additional words which are coined from their native language. Most of the Brazilians can speak English though not frequently while a good number of them can hear and understand Spanish though they may not speak it. As mentioned above, Catholicism is widely practiced with most of the individuals thus being Christians. Brazil is one of the countries which have the largest number of catholic population although other beliefs like Hinduism, ayahuasca, spiritism, Judaism and Buddhism have evolved overtime. Other groups of Christianity like the Mormon Church, Methodism and Pentecostalism are also gaining root in Brazil. An annual religious celebration known as carnaval is held in Brazil for forty days and it is celebrated before Easter which marks the lent period (Thomas, 2007). The Brazilian music is composed mostly of traditional styles for example samba, frevo and forro among others. Brazil also has classical music which dates back to the 18th century. The music industry in Brazil is marked by diversity especially after Brazil become democratic in 1985 whereby hip hop music was largely adopted. Music in the past was largely influenced by social classes which existed between the rich, the middle class and the poor people. However, most of the traditional songs were neutral and did not favor any class thus unifying the country music industry. Another important feature of Brazilian culture is their literature which can be traced back to the 16th century. Portuguese explores during the colonial period wrote different poems, plays and chronicles describing Brazil. Brazilian writers started writing soon after independence in 1822 which marked the beginning of natives’ prominence in literature. They also have a folk literature tradition although little of is known internationally. This folk literature is usually done by displaying verses in a booklet format which are hanged on the wall using strings in rhymed verses. This is common in the northeast region where illiteracy level is still high (Nava & Lauerhass, 2006). As mentioned above, carnival is one of the most celebrated events and acts as symbol of the Brazilian people. During this celebration, costumed dancers as well as musicians form parades both formal and even in the streets for a period of four days. This event is celebrated nationally with carnival symbolizing national ethos especially because it depicts the dualities of life of the Brazilians which is divided among the poverty and wealth, female and males and Europeans and Africans. Football is also another highly celebrated activity in Brazil. During major soccer matches like the world cup, all national attention is diverted to soccer with most of the people wearing clothes decorated with colors of their national flag (Garibaldi de Hilal, 2006). Brazilians unlike people in the North America have little sense especially of personal space when it comes to their etiquette. The Brazilians may be found in large and also crowded areas which do not bother them. Respect is usually accorded according to the dressing code of a person. To command respect, one thus has to wear appropriately to fit his or her class as dressing is used as a symbol of class. Also, these people tend to physically expressive and they convey some of their emotional information via touching. Touching in Brazil is translated to mean friendship or concern about the welfare of the other person. Women are more inclined to touching and kissing their fellow women as a sign of greetings while men usually pat or bear hug their male counterparts. People like doctors, professors and priests among other are addressed using their titles which is them followed by their first names. Body language is also used in Brazil and is usually varied depending on the social class or standing of an individual. Domestic or house servants greet their masters usually by a limp handshake while slightly bowing the head and lowering the eyes. They address their masters with respectful you (senhora) while masters address servants as voce. Graduates and other educated persons are addressed as doctor. The Brazilians are not bothered by nudity and this is verifiable through scanty dressing that is worn during carnival (Nava & Lauerhass, 2006). In Brazil, personal relationships are valued with body language being highly used while expressing emotions. Touching is one way of expressing concern, friendship and even interest on the other people’s point of view. People who tend to keep their distance while talking to their counterparts are usually considered to be cold and uninterested. Also the national language that is Portuguese is highly valued and even those who can speak English prefer speaking in their native Portuguese language. The Brazilians also value or regard highly their symbols which include the carnival and soccer (Garibaldi de Hilal, 2006). The national culture of a country affects in a great manner the running of the national affairs as well as the businesses. While carrying out business activities in an area, it is vital to understand the culture which the community holds as this would influence workers motivation and commitment to the business as well as the community’s perception of the business. Apart from the expertise or experience of the workers and the managers, national culture contributes in largely to the growth or stagnation of a business and as such it should be treated carefully. Knowledge of the Brazilian culture would influence greatly how a business is to be carried out in this region. As mentioned above, personal relationship is very important to the Brazilians and as such, this would impact greatly to the way a business operates. While carrying out business in this region, it is vital for the managers to ensure that they create personal relationships with their workers as this would act as a motivation factor. Managers who keep their distance may be viewed as being cold or rude in Brazil and as such, understanding the culture of the Brazilians would help in managing and running a business successfully (Ferreira, et al, n. d). Brazilians also respect and adore their symbols which are mainly soccer and carnival celebrations. During this period, most of the Brazilians are committed to the celebrations and as such may not be willing to work as usual or for long hours. Understanding the value the Brazilians attach to these functions would influence how activities of a business are carried out. This is more so because these celebrations are nationally accepted as part of their culture. During the festive period, the business may be run fewer hours be closed till the festive seasons is over. Learning to value what the native Brazilians value would help in establishing an entity in this region and also earning the commitment of the workers to the business (Ferreira, et al, n. d). Conclusion For any business to be successful, it is vital to ensure that it observes and values the national culture in existence in a particular area. The culture of a community or a country determines the attitudes, behavior and response of the workers in an organization and as such, managers should ensure that they fully understand the national culture existing in a country as this is bound to influence not only the workers performance of tasks but also the running of the business. A company deemed to esteem the national culture is more likely to be successful that a company comprising of good management team but which does not respect or observe the national culture. Reference: Ferreira, M. C. et al (n. d): Organizational culture in Brazilian public and private companies. Retrieved on 2nd April 2009 from, http://ebooks. iaccp. org/ongoing_themes/chapters/ferreira/ferreira. php? file=ferreira&output=screen. Garibaldi de Hilal, A. V. (2006): Brazilian National Culture, Organizational Culture and Cultural Agreement. International Journal of Cross Cultural Management, Vol. 6 Nava, C. & Lauerhass, L. (2006): Brazil in the making: facets of national identity. ISBN 0742537579, Published by Rowman & Littlefield Thomas, V. (2007): Culture of BRAZIL. Retrieved on 2nd April 2009 from, http://www. everyculture. com/Bo-Co/Brazil. html.

Financial Planning (Insurance) Case Study Essay

Allison has recently been promoted by her employer, Best Marketing, and now earns $135,000 p. a. working full time. She has commenced salary sacrificing 30% of this amount into superannuation, and her employer contributes Superannuation Guarantee Contributions of 9% of her remaining cash salary. The fund is a balanced growth retail superannuation fund, MM Superannuation. Her current balance is $160,000 and earns on average 7% p. a. after fees and taxes. She also has $100,000 in term life and TPD insurance cover within her superannuation fund. She drives a 4-year old Land Cruiser that is fully paid for. It has low kilometres and she expects to keep it until she retires. She will then need $30,000 to purchase a new car on top of the trade in she expects to receive from the Land Cruiser. Simon works for Newbold’s Pty Ltd, a company which makes custom furniture. He earns around $45,000 p. a. and intends doing this work for the foreseeable future. He is supplied with a work vehicle and his employer pays his SGC based on his $45,000 salary. Simon has $47,000 in superannuation savings, held within the PP Superannuation Fund. The funds are invested in a balanced/ conservative portfolio with a low allocation to growth assets that earns around 4% p. a. after fees and taxes. They are living on a semi-rural property which is valued at around $750,000, but they currently have a mortgage of $150,000 as a line of credit. They are paying approximately $1,000 per month as interest-only payments. Their other personal expenses are around $40,000 p. a. and they spend an additional $15,000 p. a. on holidays. Aside from private health cover, car, and house and contents insurance, the only personal insurance they have is the coverage provided in Allison’s superannuation fund. They do not have a will or any powers of attorney but they want to ensure they have sufficient money for their grandchildren (now aged 6 and 4 years) to attend university. They estimate they will need to accumulate approximately $120,000 (in today’s dollars) over the next 12 years to pay for this. Allison wants to work for five or six more years and they wish to pay off the remainder of the mortgage over that time. She also wants to increase the amount of money in both her and Simon’s superannuation. When she retires she believes they will need $40,000 (in today’s dollars) for their living expenses in retirement, but Simon intends to continue working part time and estimates he will earn $20,000 p. a. They intend to use Simon’s income to fund any holidays. Aside from their superannuation assets, they have $9,000 in a bank account for emergencies earning 4% p. a. , $15,000 in a term deposit earning 5% p. a. and $12,000 in a cash management account earning 5. 5% p. . They are not happy with the taxation implications of these accounts, as any interest earned on the term deposit and cash management accounts seems to go in tax. You ascertain that they both have balanced risk profiles. Required: You are required to provide written responses to the following scenarios and questions, either in short answer form or using bullet points (or both). The following attachments are included : †¢ Sample Financial Services Guide (Personal Advice) †¢ Sample Fact Finder and Risk Profile Questionnaire †¢ Sample Ongoing Service Options – Establish Relationship with Client You are preparing for an initial interview with Simon and Allison Callahan. a) Give some thought to the sort of things you would cover. Include any legal requirements and other documentation which may be helpful in the interview. For the initial interview with the clients I would cover what Azza financial services stands for, their commitment to the customer and any legal implications, go over the financial services guide (send out with letter before hand) and privacy policy and compliance. I would also make the customers aware that the information they are providing is to be used solely for the purposes of assessing their situation to help them get to a better financial position. I would allow the customers to do most of the talking, recording their responses in a fact finder, and ask the client to complete a risk profile questionnaire to get a feel for what their financial position is at the present, what kind of expectations they have on Azza financial services, how much risk they are willing to take on and if there is anything about their situation that might prevent Azza financial from providing advice to the client. )How might you ask the client to prepare for the first meeting? By sending a confirmation letter indicating how long the interview will likely be, the purpose of the interview and what is the outcome intended, advising the client if there are to be any fees paid, providing the client with a list of documents to bring (eg current insurance policies, sup er statements, current investment schemes, income and expenses, latest tax returns, valuations of assets such as property, bank and credit card statements. ) To establish a relationship with Simon and Allison, what strategies might you use to build rapport during the interview process? †¢ offer food or drink (eg coffee, biscuits, tea, water) †¢ monitor client body language and engage in similar movements to make them feel more comfortable †¢ ask open ended questions to show clients you are interested in the personally and want to hear what they have to say. d)What are the four points you must cover when presenting a Financial Services Guide? Fees and charges = explain what fees might be applicable, including benefits and commissions that could be received by 3rd parties/referrers or product providers as a result of the plan being implemented †¢ Products = outline the features of the products and services being recommended †¢ Complaints Policies and Procedure s = make sure to completely explain the procedures for handling customer complaints †¢ Relationships = explain any relationships which might influence which products are recommended or provided e)List the type of fees you could charge the clients. What are the benefits of explaining these fees to the Callahans? Types of fees which could be charged to the clients if they choose to implement the prepared plan are: plan fees (often charged regardless if plan is accepted), commissions, entry fees, management fees, account keeping fees. The benefits of explaining these fees to the clients are that there will be no nasty surprises and they will know what they are getting themselves into from the start. It also provides protection for the advisor in the event that the client deems something unreasonable. In other words, there will be no misunderstandings about the possible cost of advice. )Nominate the range of financial products and services you will be providing advice in. Name the benefits of explaining these to your clients. The financial services and products which I could be providing advice on range from simplistic things such as bank deposit accounts to general and life insurance, complex and simple investment schemes, general and specialized superannuation schemes, estate planning issues (although a lot will be directed to a solicitor if I am not qualified to provide advice on that particular area, the same goes with taxation). The benefit of explaining these to the client is that they will be more aware of what it is Azza financial services can help them with, and if they will need to be involving any third parties to complete their requirements (eg accountant or solicitor). It also takes away any misconceptions as to the outcome of the advice provided and puts everyone on the same level expectation wise. The clients also may not have been aware of particular products and services offered which once explained may change their needs and requirements which might have not previously been considered by the client. )Outline the three steps your clients should take if they have a complaint or dispute prior to contacting the ASIC. †¢ Clients should first contact their advisor to make sure that their disatisfaction is not due to a misunderstanding or something which can be ammended to their satisfaction. I would endeavour to solve their complaint within 3 working days. †¢ If the clients are still unhappy , they should lodge a formal complaint with the liscensees internal complaints process and allow appropriate time for this to be acted upon. If the clients are still unsatisfied with the outcome they may then contact the Finance Industry Ombudsman Service (FOS) for complaints involving losses of less than $500,000. FOS first trys to negociate and outcome between the involved parties, if this is not possible the matter is passed for formal assesemnt by a panel. FOS is free to clients and the decisions it makes are law to the liscensee. 2-Identify Client Objectives and Financial Situation a) What techniques or tools could you use to gather further information about your client’s goals, objectives and financial situation? Fact finder †¢ Financial documentation – tax returns, statements, scheme overviews etc †¢ Use of open ended questions †¢ Diagnostic questionnaires †¢ Risk profiling b)Using your case study, complete the attached Fact Finder with as mu ch information as you can. Remember that this document is used to collect current information as well as identify any issues, problems or constraints that may be relevant in developing your advice. See Fact Finder i)From the scenario in your case study, write down one or more specific financial goals for the generic needs provided. Wealth creation for a specific purpose |Start increasing Allison and Simons Super balances ($160K and $47K) | | |Pay for grandchildren’s university in 12 years – estimated needed | | |$120K in today’s dollars | |Wealth protection |Take out Personal insurances to avoid eroding savings if something | | |unforeseen happens – income protection, trauma, evaluation of current | | life and TPD | |Debt reduction |Pay off IO mortgage of $150K in 5 years | |Tax minimization |Save on tax on bank accounts/term deposits | | |Possibly downsize family home and move mortgage to investment property| | |to save on tax | |Superannuation |Start in creasing Allison and Simons Super balances ($160K and $47K) | | |and evaluate suitability of current funds | |Investment Planning |Possibly purchase Investment property to produce another income stream| | |and save on current tax | | |Look into other investment options to diversify current wealth | |Estate Planning |Establish will and power of attorney with solicitor | c)Write down a line of questioning that you would use in the initial interview to increase your understanding and obtain further clarification of the client’s goals and objectives. Use open-ended questions starting with What, How, When, Why and Where. †¢ Apart from what we have already discussed, tell me about any other goals, long or short term that you might have. †¢ What do you plan to do when you retire? †¢ What is your current state of health? Eg do you smoke, are you aware of any issues that could affect your ability to work? †¢ Simon, what sort of duties do you perform at work? (- for insurance purposes we need to ascertain what type of work Simon is doing in order to now which category he fits, A/B/C? ) †¢ What are the contact details of your accountant? (- Financials) †¢ If you have a solicitor, what are their details? power of attorney, will) †¢ What are your plans/goals in relation to the planning of your estate? †¢ Tell me what other possible financial details you could have overlooked in filling out the fact finder? (- no credit cards? No shares or any investments outside of super and regular bank accounts? ) †¢ What level of cash reserve do you feel comfortable keeping liquid for emergencies, and are you expecting to receive a lump sum of money in the future? †¢ What are the premium details of your current life and general insurance policies? †¢ When are you considering downsizing the family home, if at all? d) What action would you take immediately after the first meeting? Immediately after the first interview I would Clearly write down everything which needs to be investigated or researched, in relation to what types of products, tax issues, possible strategies, the sources of information and a timeline for completion. This is so that I can prove I have been compliant with the corporations Acts requirement of investigating the ‘subject matter of the advice’. I would ask the clients to sign an authority accepting the preparation and research of drawing up a financial plan and agreeing to pay any fee which may be incurred as a result of this advice. e) Simon and Allison have a ‘balanced’ risk profile. Complete the sample Risk Profile Questionnaire to reflect this. See risk profile 3- Analyse Client Objectives & Financial Situation Will Simon and Allison’s current financial circumstances and other concerns meet their objectives without your assistance? a) Why/why not? No, Simon and Allison’s current financial set up is not adequate to allow them to meet their goals and objectives. This is because they are note contributing enough in their superannuation to achieve their desired balances, they do not have any estate plans in place, their current bank accounts are leaving them paying excess tax, they are not sure how to structure their expenses in order to reach a comfortable position upon retirement in 5 years time, and their personal insurance are grossly insufficient to keep them in their current lifestyle and meet expenses should something happen to one of them. ) List the assumptions you made. †¢ Allison and Simon do not have current solicitor whom they have talked about creating a will or power of attorney with †¢ Allison and Simon are of average intelligence and have not had much to do with Financial planning services in the past. †¢ Allison and Simon do not know much about investment schemes, Superannuation regulations, Life insurance or Taxation †¢ Allison and Simon have used an Accountant in the past to prepare their yearly tax returns †¢ The average expected rate of return is 6% †¢ Expected CPI is 3% and current tax rates have been used. c) Reference information sources that you have relied on in forming your view. RG146 training Australia DFS course material and scenario †¢ Australian Taxation Office website (www. ato. gov. au) †¢ Financial Planning association website (www. fpa. asn. au) †¢ Westpac and BT Financial group case studies (internal) 4 – Develop Appropriate Strategies & Solutions a) Describe two research processes you can use to gather information about products and services you recommend to your clients. †¢ Independent research houses (eg Standard and Poors and Morning Star) †¢ Internet sear ches eg ASX, AFPA, ATO etc †¢ Product disclosures, rankings, past performance of companies, Financial review newspaper etc Refer to your case study, Fact Finder and Risk Profile Develop a strategy for each of the following points for Simon and Allison. Describe each of your strategies in terms of key characteristics, advantages and disadvantages. b) Please address Allison’s insurance requirements. Your response should include a brief description of each type of cover and actual amounts recommended. Include calculations and explanations of amounts. †¢ Term Life: – term life insurance provides a bulk payment to the beneificiaries of a person upon their death, or in some cases when disgnosed with a terminal illness the person insured can also received the payment. – offered to people from 16-75 and can renewed until age 99. Can be paid via stepped premiums (where premium increases with age, you pay more in the long run) or level premiums (same amount througout policy, 30% cheaper than stepped in long run, and indexed to CPI) – Advantages of having life insurance are that it gives the insured peace of mind knowing that they are n ot leaving their loved ones in poor financial positions upon their death and ensures they are looked after – Disadvatanges are that there are a few exclusions to the policy such as suicide within first 13 months, War, pre-existing conditions, aids, and terminal illness/disease where it is a direct result from an action which was self-inflicited. – Currenlty Allison has $100,000 worth of life and TPD insurance within her superannuation. In regards to life insurance this is unfortunately inadequate as the estimated living costs for Allison and Simon are $67,000 per anum. In order for Simon to continue meeting these expenses (whilst still working) if allison were to becomed deceased, the insured amount would need to be close to $475,000. This is because if invested at an average fixed deposit rate of 6% it would provide an income stream of $28,500 per anum to Simon. [(475000/100) x 6 = 28,500] – this along with his current net salary of $38490 come to a per anum income strem of $66,990 to meet expenses. An additional $270K should also be added to cover their existing mortgage debt and to have money left over in order to pay for the grandchildrens university education, bringing the total life benefit to $745,000. †¢ Income protection: – A fortnightly or monthly payment paid to the insured in the event that they suffer and injury or illness which leaves them unable to work – Maximum of 75% of income can be insured and person must be employed at least 25 hours per week. Waiting periods of 14-720 dys apply and benefits periods can be 1-65 years (longer the beenfit period the higher the premium) – 2 types of policies are agreed value (specified value to be paid regardless of difference bet ween insureds current and former incomes) indemnity (benefit based on insured income at time of claim. – Advantages are that the insurance provides peace of mind knowing that if the insured was to suffer from an injury or illness and are unable to generate an income that the benfit will be paid as if it were their regular income, giving them peace of mind that they could stay on top of all their financial commitments and goals whilst healing. Disadvantges are that as income protection is linked to employment, those who are unemployed or even those with occupations which are considered too risky are not able to obtain income proteciton insurance. Also, as the benefit is only 75% of income, the insured will be 25% worse off and will need to make sure this will not affect any financial commitments or goals they may have. – Allison currently does not have income protection insurance in place which could end diasterously as she earns 75% of the couples gross income. [(180,0 00/100) x 75 = 135,000)]. Allison should take out an income protection policy with a $101,250 benefit (135,000-25%) which would then provide both her and Simon peace of mind knowing that if anything was to happen they could continue paying their expenses †¢ Total and Permanent Disability: TPD insurance provides a lump sum payment to the insured after a qualifying period (usually six months) when certain criteria is met. – Criteria can be inability to perform own occupation, any occupation, home duties or all duties; these are based on the type of work the insured is in (rated AAA-E) – Immediate qualification for TPD payout if insured looses sight or a limb – Advantages of having TPD is that if the insured suffers a debiltating injury that sees them unable to return to work that they can still meet their expenses – Disadvantages are that it is not available to everyone; a new policy cannot be taken out after 60 and policies already in place automatica lly cease when insured reaches 65. Also unless rated category E, the standard level of cover criteria is ‘any occupation’, meaning that the insured may be able to perform in a role significantly less stimulating, challenging and financilally rewarding which would make them ineglibly to receive a payout even if they suffer a total and permanent diability. – As Allison and Simons expenses are $67,00 p/a and Allisons income protection benefit is $101,250, whilst Allisons still working a stand alone TPD policy would be beneficial for having a lump sum to pay off the exisiting mortgage debt of $150K, have enough money to pay for the grandchildrens university ($120K) and possible medical expenses (another $150K) – totalling a $420K TPD. Another amount for Living expenses should also be considered for the 6 years until retirement ($67,000 x 6 years = $402,000). This brings the total recommended TPD benefit to $822K which could also be bundled as a rider on Allisons life insurance to avoid overinsurrance. †¢ Trauma: – Trauma insurance provides the insured with a bulk payment when they suffer from an illness specified in the policy – Can be bundled with life insurance and a payout will decrease the life policy by the same amount – Available to people aged 16-55, or trauma for children aged 1-12 years ( waiting periods and age limit criteria apply) – Advantages are that as trauma insurance is not related to employment, people with uninsurable occuppations can still generally take out trauma insurance. Also the insurance provides peace of mind knowing that if the isured was to suffer from a specified illness and are unable to generate an income that the sum paid will cover their expenses and ease the financial pressure – Disadvanages are that there are exclusions such as death within 3 to 30 days of trauma event, trauma caused by an ntentional self inflicted injury or attempted suicide and acts of war. – In order to avoid overinsurance Allison should take out around $250K trauma insurance to cover $150K exisiting mortage debt and any medical expenses associated with the event. Allisons Income protection will also most likely be able to contribute towards the benefit amount should a defined event occur. c)Does Simon require personal insurance? If so, what types and how much? Please include reasons and calculations Simon could take out the following polices to provide stability and peace of mind for Allison in the event something should happen to him. †¢ Term Life, Trauma, TPD: As Allisons income (or insurance benefit if something were to happen to her simultaneously) alone can support the couples expenses of $67,000, I would recommend a combined life insurance, TPD and Trauma policy, of $690K for Simon [(salary of $45,000 x 6 years = $27,000) + $150K mortgage debt + $150K possible medical espenses + $120K grandchildrens education = $690,000), so that the mortgage can be paid out, the grandchildrens education can be paid for, any medical expenses which might be incurred can be paid, and a replacement income stream for simon is created leaving allison debt free if something were to happen to Simon. †¢ Income protection: It is my view that Income protection is not necessary for simon as allisons income is more than adequate to support the couple with money left over, however if they did not want to draw on this, an income protection policy could be put in place for 75% of his income. [$45,000 x 75% = $33750 ($33750 / 12 = $2812. 5]. this w ould mean Simons monthly benefit woul be $2812. 5 (75% of his monthly income). D) What is the most efficient way for Simon to contribute to superannuation and why? How much should Simon contribute? As Simon is on the lower end of the income tax scale, it is beneficial for him to make non-concessional contributions into his superannuation as he is eligible for government co-contributions for every $1 he puts in up to $1000. As Allison is on a higher MRT than Simon, if she were to salary sacrifice a larger portion of her income into both their superannuation accounts (shes currently Sacrificing $40,000 into her own, however this could be brought up to $70,000 and then she could sacrifice another $20,000 per anum into Simons in line with their goals of increasing their super balances) they would be paying less tax (as Allison in on the highest MRT and super contributions are at 15%) and they can use Simons income (on lower MRT) to put towards their expenses, thus Simon should not contribute too from his salary above the SG of 9% and non-concessional contributions past $1000 (as his super will be paid in by Allison to achieve the above stated tax advantages). Simon should also switch his investment strategy to a balanced mix as it is too conservative to his risk profile at the present. e)Is Allison contributing sufficient funds to superannuation at this time to meet their retirement objectives? Please explain. To meet their objectives of having $40,000 per anum to live off in retirement, Allison is not contributing enough to her superannuation at this point in time. Allowing for the effects of compounding interest, after 5 years Allison’s superannuation balance would have accumulated to $224,400 (at 7%). In order to provide an income stream of $40,000 Allison will need to bring her balance up to $580,000 by the time she retires in 5 years. This means Allison will need to make up the difference ($580,000 – $224,400 = $355,600) in the next five years. Allison will need to contribute another $30,000 p/a [($355,600/5 = $71,120) – her current Salary Sacrifice of $40,500 = $30,000] to her superannuation to achieve this balance and their retirement objectives. Allisons current total superannuation contributions per anum are $40,500 in salary sacrifice (30% of salary of $135,000) along with a Superannuation guarantee of 9% of her remaining salary ($135,000 – $40,500 = $94,500, $94,500 x 9% = $8505) bringing her total contribution to $49,005. f) Are their additional benefits available to Simon or Allison as a result of your strategies above? By Allison salary sacrificing more of her income she is saving astronomical amounts on tax as the contributions tax is only 15% as opposed to her MRT. As stated previously, Simon will also be eligible for the government co-contributions with his non-concessional contributions. Allison’s income protection policy (and Simons if taken out) are also tax deductible. Simon is also eligible for the low income tax offset of $804 from a maximum of $1350 for income earners of under $30,000. For Simon his amount is worked out with the following calculations: 1. [$1350 – ($45,000 taxable income -$30,000 threshold) x 4% = 546] and then 2. $1350 – 546 = $804) g)What is your recommendation regarding an investment for the grandchildren’s university education? What are the benefits of this investment? For the grandchildren’s education I would recommend investing in a balanced education savings plan (they would need to contribute $7000 p/a (at approx 7%, and with the effects of compounding interest) to reach their goal of $120,000 in 12 years) as the amount invested in taxed at a flat internal company rate of 30% however after 10 years the amounts can be withdrawn for non education purposes tax free, and as the investment is to be over 12 years Allison and Simon could take advantage of this. If it was to be withdrawn earlier, they are still in a good position as the money would be invested with a bit more risk than that of an everyday savings account and the taxation benefits still outweigh other methods, especially with the low income offset which is still said to be increasing. h) Are their bank/cash investments (total $36,000) meeting their requirements? Why/why not? What do you recommend? No, currently these investments are not meeting Allison and Simons requirements as they are held in both names and are therefore subject to Allison’s higher MRT. If Allison and Simon decided to use the advantages provided by income splitting (that is, transferring term deposits and interest bearing accounts into Simons name) then they would save on tax as Simon has a lower MRT. Allison and Simon could also think of putting this money in their Superannuation to capitalize on the 15% contributions tax or putting it into the mortgage as then they are paying less interest, however this would depend on whether or not they would be needing to keep this money liquid for everyday use and emergencies. i) How would you address their goals of paying out their home loan and purchasing the new car upon retirement? In order to pay out their home loan in 5 years time, Allison and Simon would eed to put around $40,000 P/A towards due to interest payable. After Allison’s extra salary sacrificing for both their Super accounts, the couple have around $45,000 surplus disposable income per anum. $40,000 can be used to make these extra payments on the home loan and the other $5000 can be put into a high interest savings account for the 5 years (which if invested at the average deposit rate of 6% will leave them with $29576. 10 after 5 years with the effects of compounding interest) which will leave them with enough money to purchase the new car. j) Are their estate planning preparations adequate? Why/why not? Currently Allison and Simon have no estate plan, therefore it being inadequate. I would recommend to Allison and Simon to contact their solicitor to discuss a will/power of attorney using their information we have uncovered through analyzing their financial situation here today. k)What alternative strategies did you consider? Why did you reject them? Insurance – providing insurances for Simon as well; This would be over insuring and wasting money for Allison and Simon as Simons income in relatively small in comparison to Allison’s, and she is able to cover all costs if something we to happen to Simon. Superannuation – Simon contributing more to his superannuation; the tax benefits of Allison’s salary sacrifice through decreasing her MRT far outweigh that of Simons and it was therefore better to prioritise with Allison’s SS and utilize Simon’s income for expenses. Investments – For the grandchildren’s university education, possibly investing in something more risky (eg shares) or less risky (eg Term deposits) however the tax advantages and return on the educations savings plan in comparison would leave them in a better position. 5 – Present Strategies and Negotiate Solutions Prior to Presentation a)Describe what preparations you would undertake to present your strategies in step 4 to Simon and Allison. After thorough research enabling me to form my recommendations, I would prepare a Statement of Advice with my findings, make sure to gather all product disclosure statements which are relevant, and information to back up my advice. I would also make sure there was a financial services guide within the information I would be taking to the interview. I would then call the clients to arrange a time which suits. b) What back-up information or documentation might you need? I might need to back up the performance of particular products/services I recommend (this could be provided in the form of company reports, asx reports, PDS, articles, academic studies etc) also easy to follow breakdowns of any calculations made so the client can see exactly how the strategy will benfit them. FSG and Privacy policy to assure the client of the companies principles and policies in the event of a dispute. During the Presentation c) Describe the disclosure principles and presentation requirements you must adhere to for the following documents: ? Statement of Advice The statement of advice must have â€Å"statement of advice† written across the front of it, it must be in non complex wording (â€Å"clear, concise and effective manner†), must have a â€Å"generic description of the range of financial products or strategies considered and investigated†¦Ã¢â‚¬ . The customer must receive a copy, along with PDS and FSG and must have signed and had the SOA presented to them BEFORE any implementation of strategies can be put in place. A disclaimer is also usually placed at the bottom of the SOA to protect the financial planner and affiliated companies against the working of case law – althogh this is not required by the corporations act. ? Product Disclosure Statement – The PDS needs to accompany the SOA so the clients have all the information in relation to possible products they are signing up to. Other things which need to be in the PDS include: Fees and charges = explain what fees might be applicable, including ben efits and commissions that could be received by 3rd parties/referrers or product providers as a result of the plan being implemented ? Products = outline the features of the products and services being recommended ? Complaints Policies and Procedures = make sure to completely explain the procedures for handling customer complaints ? Relationships = explain any relationships which might influence which products are recommended or provided d)List 2 objections or concerns your client might raise. How would you address these in order to gain agreement? 1. How do I know that what you recommend will work out for me in the long run? – We have based these recommendations on previous performance of these products and services, all of which you have sighted with your eyes. We cannot 100% guarantee that these potential outcomes listed will occur, however financial planning is what we specialise in and we make it our duty to look after your financial health. If we notice that the course which we have mapped out for you is not heading in the direction we have anticipated, you will be the first to know, and we will review your situation in order to alter your plan to best fit your needs, provided you would like us to provide you with this ongoing service. 2. This plan fee seems overly expensive – why do I have to pay it? – It takes a considerable amount of time, research, investigation and preparation for us to put together a plan that is tailored entirely according to your personal needs. There are no generics or assumptions made with what we are presenting you and the savings and earnings you will make as a result of our guidance will far outweigh the cost of this information. 6 – Implement Agreed Plan Simon and Allison have agreed to your plan. a) What transactional documents/authorities need to be signed by Simon and Allison? †¢ Authority to proceed / SOA and disclaimer †¢ Application forms along with PDS attached †¢ A cheque to be written to accompany application form b) Complete an Implementation Plan, in order, that details your planned actions now that Callahan’s have decided to proceed with your recommendations in step 4, providing an indication of when each must be completed. A – Adviser C – Client | No. Action |Who |When | | |Sign Authority to Proceed |C |Now | | |Provide 3rd parties with adequate notification of actions needed to be taken eg solicitor, accountant |A |ASAP | | |Complete application forms ready for c lient to sign |A |ASAP | | |Present application forms to client with PDS attached to be signed. |A + C |When ready | | |Photocopy, keep one and give other with PDS to client. | | | |Obtain Cheque from Client and attach to application form to be sent to dealer group |A |With step 4 | | |Welcome letter from dealer is issued |A /Dealer |- | | |Secure client file established (maintained for 7 years) |A |- | | |Confirm with clients that they have received welcome letter and they have heard from any 3rd parties. |A |- | | |Speak to clients about Review Service |A |When everything| | | | |is settled | 7 – Provide ongoing service You now have to address the issue of providing ongoing advice to Allison and Simon. )What environmental (economic, market, regulatory) changes, or changes to their personal or financial situation would cause a review of their plan? †¢ Interest rate changed may affect tax advantages, investment earnings †¢ New regulatory changes may grandfather or c ompletely remove current strategies in place †¢ Market booms and busts may cause portfolio mix to be outdated / underperforming †¢ Clients may have suffered a loss, or injury causing them to claim and or need to reassess the financial commitments they can keep up with †¢ Clients may have come into a considerable amount of money unexpectedly allowing for more room to move in current strategy (e. g. inheritance, lotto) Change of advisor may bring upon new light on their situation, may have a better strategy in mind. b)Describe 2 activities you regularly undertake to keep up-to-date with current legal, ethical and regulatory requirements of the finance sector. †¢ Read financial review/finance news, current company legal updates †¢ Read the AFPA reports issued and newsletter from BT financial and liaise with current financial planners c)What level of ongoing service would you propose for these clients? ( â€Å"No service† ( â€Å"Portfolio valuation† ( â€Å"Portfolio review† ( â€Å"Financial Plan review† ( â€Å"Other† – Describe d)Describe the option recommended for your client, and why you have recommended this option. Describe the level of service you will provide and the associated fees. I would recommend an annual portfolio review for Allison and Simon to ensure that they are on track to achieving their goals. This would involve checking balances and fund mixes to ensure adequate returns have been made and that products are performing as anticipated. I would prepare a letter to send out based on my finding advising whether or not a change could benefit them. As the strategies recommended for Allison and Simone are fairly basic a separate fee would not be necessary as this service would be considered to be paid for under the trail commissions. Sample Fact Finder & Risk Questionnaire 1. PERSONAL DETAILS |CLIENT 1 |CLIENT 2 | |Title: |Mrs |Mr | |Given Name: |Allison |Simon | |Preferred Name: |Allison |Simon | |Surname: |Callahan |Callahan | |Date of Birth: |1956 |1958 | |Marital Status: |M |M | | | | | Home Address: |Address: Lot 3 Wattle Road | | | | | |Suburb/Town: Hurstbridge | | |State: VIC Pos tcode: | |Home Telephone No. | | |Preferred Contact No. | | | | | | | | CHILD / DEPENDENT DETAILS Name: |Megan | | | | |Relationship: |Daughter | | | | |Date of Birth: |1981 | | | | |Current Age: |29 | | | | |Financially Dependent: |NO | | | | HEALTH DETAILS Do you Smoke: |Yes / No |Yes / No | |State of Health: |Poor / Good / Excellent |Poor / Good / Excellent | |Are you aware of any health issues that may| | | |impact your ability to earn an income? | | | |(please provide details) | | | |Notes: | 2. EMPLOYMENT DETAILS |CLIENT 1 |CLIENT 2 | |Employment Status: |( Unemployed |( Unemployed | | |( Full Time Employed |( Full Time Employed | | |( Self Employed |( Self Employed | | |( Part-time |( Part-time | | |( Retired |( Retired | | |( Other |( Other | |Employer Name: |Best Marketing |Newbolds Pty Ltd | |Position Title: |Marketing |Employee | |Primary Duties: |Marketing |Custom Furniture | |Work Address: | | | |Current Work Phone No. : | | | |Employment Security: |Secure – just promoted |Secure – intention to stay long term | |Are you Contemplating leaving your employer? |In 5-6 years |Not in the foreseeable future | |Do you foresee any substantial change in |Planned retirement in 5-6 years, possible |In 5-6 years will reduce hours to part time | |your income in the next 2-5 years? reduction in take home pay in the lead up to|– income will be approx $20K p/a | | |this | | |Notes: | | | OTHER ADVISER DETAILS Accountant |Name: | | |Company: | | |Contact Detail: | | Do we have authority to contact? ( Yes ( No Solicitor Name: | | |Company: | | |Contact Detail: | | Do we have authority to contact? ( Yes( No ESTATE PLANNING DETAILS | |CLIENT 1 |CLIENT 2 | |Do you have a current Will? |No |No | |Date of Will / Last Reviewed: | | | |Power of attorney |No |No | |Type / Name of Attorney? | | |Do you have Funeral Plans? |No |No | |Do you have any specific intentions |Intention to pay for grandchildren’s |Intention to pay for grandchildrenâ€℠¢s | |regarding your estate distribution? |university in the approx 12 years (approx |university in the approx 12 years (approx | | |$120K in today’s dollars) |$120K in today’s dollars) | 3. FUTURE NEEDS OBJECTIVE AND GOALS |E. g. Current income needs, retirement income needs, diversification, tax minimisation, capital growth, investment security, wealth creation, | |eliminate mortgage etc | |Reasons for seeking financial advice | |Gain assistance with making the transition to retirement and planning the next five years | | | | | |Short Term (1 to 3 years) | |Save on tax on bank accounts/term deposits through possibly restructure | |Start increasing Allison and Simons Super balances ($160K and $47K) | |Look into other investment options to diversify current wealth | |Medium Term (4 to 7 years) | |Pay off IO mortgage of $150K in 5 years | |Buy new car (through trade in 9 year old land cruiser) worth $30K In 5 years | |Have a $40K (today’s dollars) p/a retirement income stream in 5 years | |Long Term (7 year plus) | |Pay for grandchildren’s university in 12 years – estimated needed $120K in | |today’s dollars | | | | | RETIREMENT PLANNING Retirement Details |CLIENT 1 |CLIENT 2 | |Plan ned Retirement Age: |59/60 |undetermined | |Retirement Income required: |$40K (today’s dollar) |$40K (today’s dollar) | |After retirement, do you intend to work |NO |Expected Income= | |again either on a full-time or part-time | |$20K | |basis? |Till age: undetermined | |What capital expenses will you have in |$ |$ | |retirement? (Please state expense and | | | |value) | | | |Would you like some assets left to your |$ |$ | |estate? Please detail) | | | |Notes: | | | | | 4. FINANCIAL DETAILS PERSONAL BALANCE SHEET Lifestyle Assets | |Owner |Date Acquired |Value |Associated Debt | |Principal Residence: |Allison and Simon | |$750,000 |$150,000 | Contents: | | | | | |Motor Vehicle/s : |Allison |2006 |Land Cruiser |No debt | |Caravan / Boat / Trailer: | | | | | |Investment Property: | | | | | |Other: | | | | | | | | | | | | | | | | | | | | | | | |Total | | | | | Investment Assets Investment | | | | | | | | | | | INCOME DETAILS | |CLIENT 1 |CLIENT 2 | |Income: |$135,000 |$45 ,000 | |Investment Income: |$1770 p/a interest (bank accounts) |$1770 p/a interest (bank accounts) | |Centrelink Income: | | |Pension/Annuity Income | | | |Other Income: | | | | Less Income Tax |$38554 |$7580 | | Less Medicare Levy |$2050 |$700 | |Total Net Income |$94426 |$38490 | |Combined Net Income |$132,916 | EXPENSE DETAILS |COMBINED | | |Food: | | | |Entertainment: |$15,000 | | |Transport/Vehicle: | | | |Council Rates: | | | |Amenities: | | | |Rent: | | | |Mortgage Repayments: |$12,000 | | |Other |$40,000 | | |Total |$67,000 | | SURPLUS DISPOSABLE INCOME | |COMBINED | | |Annual: |$65,916 | | |Monthly: |$5,493 | | PLANNED MAJOR EXPENSES |Nature of Expense |Approx. Expense Amount |Expected Date | |Grandchildren’s university |$120,000 in today’s dollars |12 years | |Purchase new car |$30,000 |5/6 years | | | | | | | | | |What cash reserve do you require for | | | |emergencies or unforeseen expenses? | | | |Are you expecting a future lump sum or | | | |inheritance? | | | |If so, how much? | | |Notes | | | 5. SUPERANNUATION & INSURANCE SUPERANNUATION |Company |Policy No. |Employer/ Personal | |Are any of the above policies preserved? | |No | |Has a tax deduction been claimed for part/all? |Yes |No | |Are there any exit fees applicable? |Yes |No | LEAVE PAYMENTS Type |Expected Receipt Date |Anticipated Amount | |Annual: | | | |Long Service: | | | |Other: | | | |Have you recently received a redundancy package? |Yes |No | |If you have recently received a redundancy package, please provide notice of payments. | GENERAL INSURANCE Insurance Description |Policy Number |Owner |Date Commenced |Sum Insured |Premium Payable | |Term Life and TPD |Allison |$100,000 | | | | | | | | | | | | | | | | | | | | | | | | | |Notes: | | | 6. INVESTOR RISK PROFILE Your attitude to risk is probably the most important factor to consider before investing. To achieve higher returns, you will have to be prepared to accept a higher risk of capital loss. This is because the funds and assets that offer high returns are generally more volatile than those producing lower returns. It is what we call ‘risk/return trade off’. We will recommend investment strategies to match your investments to your risk profile. Investing across the various investment sectors according to your risk profile is called diversification. For example, instead of investing only in property, or only in shares, you might invest a proportion in both, or even include cash or fixed interest to create a balanced portfolio. You are a balanced investor who wants a diversified portfolio to work towards medium to long-term financial goals. You require an investment strategy that will cope with the effects of tax and inflation. Calculated risks will be accepted to help you achieve good returns. 17 – 23 Moderately Conservative – A Low Risk Taker You are a moderately conservative investor seeking better than basic returns, but risk must be low. Typically an older investor seeking to protect wealth that you have accumulated, you may be prepared to consider less aggressive growth investments. 9 – 16 Conservative – A Very Low Risk Taker You are a conservative investor. Risk must be very low and you are prepared to accept lower returns to protect capital. The negative effects of tax and inflation will not concern you, provided your initial investment is protected. 7. CLIENT STATEMENT / AUTHORISATION |I/We herby declare that the information set out in this form is true and correct to the best of my/our knowledge. | |I/We are not aware of any other information and have not disclosed to the person to whom this form is given any other information | |which would be relevant to the making of a recommendation by a Mentor Financial Planning Representative. | |I/We give permission for this information to be used for the preparation of my/our financial plan and I/we understand that the | |investment recommendations will be based solely on the information supplied in this form. | | |I/We also acknowledge that: | |( |I/we have received, read and understood the Financial Services Guide before any advisory services were provided; | |( |I/we permit this document to be passed in confidence to any member of Mentor Financial Planning Pty Ltd; | |( |Lim ited Information Provided | | |I/We have provided limited financial information. I/We have limited the product(s) or objective(s) that can be advised on | | |to: | | |If you are seeking limited advice of a particular nature you must make this known at the time of the interview and you | | |should recognise that the recommendations will only relate to that limited advice being sought and may not be appropriate | | |considering your overall situation and objectives. | |( |Tax File Number Permission | | |I/We give permission for my/our tax file number(s) as provided, to be held only by Mentor Financial Planning and be | | |forwarded to financial institutions as requested or as necessary. |( |Engagement Application | | |I/We request that Mentor Financial Planning investigate research and provide suitable options to the financial objectives | | |outlined in this questionnaire. | | | | | |I/We understand that the preparation fee of $500 is payable for the work to be undertaken. This fee may be credited | | |against my establishment fee should I/We proceed to implement any of the recommendations provided by Mentor Financial | | |Planning. | | |Client 1 | |Client 2 | | | | | |Signature: | | | | | | | | | |Date: | | | | |8. Adviser’s Declaration | I declare that: a) the information contained in the Fact Finder is an accurate and complete record of the information obtained from the client(s); b) The client(s) was provided with a copy of the Financial Services Guides before any advisory services were provided. |Adviser’s Signature | |Date | | | |Additional Important Information for the Client(s) | |If incomplete or limited financial information has been provided: | | | |I, as your Adviser, will not be able to undertake a full needs analysis of your individual investment objectives, financial situation | |and particular needs; | |There is a possibility that any recommendation given to you may not be fully appropriate to your individual objectives and needs, | |especially those which I, as the Adviser, do not know; and | |You as the client must carefully ssess the appropriateness of the recommendations to your own individual investment objectives, | |financial situation and particular needs before acting on them. | To Whom It May Concern Please accept this letter as my/our authority to provide any information requested and documentation if required to Azza Financial Planning (or their representative). Please accept a photocopy or facsimile of this letter, as the original will remain on file at the offices of Mentor Financial Planning. Correspondence should be sent to Level 2, 349 Collins Street Melbourne VIC 3000 This authority should remain in force until withdrawn in writing by me/us. Thankyou. |Allison Callahan | | | |Client 1 Name | |Signature | | | |Simon Callahan | | | | | |Signature | | |Client 2 Name | | | | | | | | | |Client 1 D. O. B. | |Client 2 D. O. B. | | | |___/___/___ | |___/___/___ | | | | | |Lot 3, wattle road, Hurstbridge, VIC | |Address | | | | | On Going Service Options 1. The â€Å"No serviceâ €  option This generally relates to a one off investment placement based on the agreed investment strategy in the financial plan. In choosing this option, no ongoing service or review of the financial plan and the investment portfolio is provided to the client unless specifically requested by the client or upon the recommendation of the planner. 2. The â€Å"Portfolio valuation† option This service provides reports on the value of your investment portfolio only. The fee charged will depend on the frequency of the reports. In choosing this option, no ongoing service or review of the financial plan is provided to the client unless specifically requested by the client or upon the recommendation of the planner. 3. The â€Å"Portfolio review† option This service provides reports on the value of your investment portfolio. The fee to be charged will depend on the frequency of the reviews and will be agreed at the time. The minimum fee is $N/A but this may be higher depending on the complexity of the review. This service includes: An annual/half yearly/quarterly review of your existing investment portfolio and its performance looking at further investment opportunities, if appropriate establishing if there have been any changes in legislation, the economic environment and state of the financial markets that may impact on your recommended investment portfolio In choosing this option, o ongoing service or review of the financial plan is provided to the client unless specifically requested by the client or upon the recommendation of the planner. 4. The â€Å"Financial Plan review† option This service provides for an annual/half yearly/quarterly review of the overall financial plan strategy and the investment portfolio recommend ed. Each review will be presented in the manner of a written report and recommendations. The fee to be charged will depend on the frequency of the reviews and will be agreed at the time. The minimum fee is $__500________, but this may be higher depending on the complexity of the review. This service includes: roviding reports on the value of your investment portfolio; an annual/half yearly/quarterly review (including comments) of your existing investment portfolio and its performance; looking at further investment opportunities, if appropriate; establishing if there have been any changes in legislation, the economic environment and state of the financial markets that may impact on your recommended investment portfolio and the overall financial plan strategy; establish if there have been any changes to your personal circumstances or financial goals and objectives; ascertain if the overall financial plan and the investment portfolio is continuing to meet your financial goals and objec tives (including an insurance review); and making any new recommendations (if necessary).

The Lost Duke of Wyndham Chapter Ten

Jack's usual response when delivered unpleasant tidings was to smile. This was his response to pleasant news as well, of course, but anyone could grin when offered a compliment. It took talent to curve one's lips in an upward direction when ordered, say, to clean out a chamber pot or risk one's life by sneaking behind enemy lines to determine troop numbers. But he generally managed it. Excrement†¦moving defenseless among the French†¦he always reacted with a dry quip and a lazy smile. This was not something he'd had to cultivate. Indeed, the midwife who'd brought him into the world swore to her dying day that he was the only baby she'd ever seen who emerged from his mother's womb smiling. He disliked conflict. He always had, which had made his chosen professions – the military, followed by genteel crime – somewhat interesting. But firing a weapon at a nameless frog or lifting a necklace from the neck of an overfed aristocrat – this was not conflict. Conflict – to Jack – was personal. It was a lover's betrayal, a friend's insult. It was two brothers vying for their father's approval, a poor relation forced to swallow her pride. It involved a sneer, or a shrill voice, and it left a body wondering if he'd offended someone. Or disappointed another. He had found, with a near one hundred percent success rate, that a grin and a jaunty remark could defuse almost any situation. Or change any topic. Which meant that he very rarely had to discuss matters that were not of his choosing. Nonetheless, this time, when faced with the dowager and her unexpected (although, really, he should have expected it) announcement, all he could do was stare at her and say, â€Å"I beg your pardon?† â€Å"We must go to Ireland,† she said again, in that obey-me tone he expected she had been born with. â€Å"There is no way we shall get to the bottom of the matter without visiting the site of the marriage. I assume Irish churches keep records?† Good God, did she think all of them were illiterate? Jack forced down a bit of bile and said quite tightly, â€Å"Indeed.† â€Å"Good.† The dowager turned back to her breakfast, the matter good and settled in her mind. â€Å"We shall find whoever performed the ceremony and obtain the register. It is the only way.† Jack felt his fingers bending and flexing beneath the table. It felt as if his blood were going to burst through his skin. â€Å"Wouldn't you prefer to send someone in your stead?† he inquired. The dowager regarded him as she might an idiot. â€Å"Who could I possibly trust with a matter of such importance? No, it must be me. And you, of course, and Wyndham, since I expect he will want to see whatever proof we locate as well.† The usual Jack would never have let such a comment pass without his own, exceedingly ironic, One would think, but this current Jack – the one who was desperately trying to figure out how he might travel to Ireland without being seen by his aunt, uncle, or any of his cousins – actually bit his lip. â€Å"Mr. Audley?† Grace said quietly. He didn't look at her. He refused to look at her. She'd see far more in his face than the dowager ever would. â€Å"Of course,† he said briskly. â€Å"Of course we must go.† Because really, what else could he say? Terribly sorry, but I can't go to Ireland, as I killed my cousin? Jack had been out of society for a number of years, but he was fairly certain this would not be considered good breakfast table conversation. And yes, he knew that he had not pulled a trigger, and yes, he knew that he had not forced Arthur to buy a commission and enter the army along with him, and yes – and this was the worst of it – he knew that his aunt would never even dream of blaming him for Arthur's death. But he had known Arthur. And more importantly, Arthur had known him. Better than anyone. He'd known his every strength – and his every weakness – and when Jack had finally closed the door on his disastrous university career and headed off to the military, Arthur had refused to allow him to go alone. And they both knew why. â€Å"It might be somewhat ambitious to try to depart tomorrow,† Grace said. â€Å"You will have to secure passage, and – â€Å" â€Å"Bah!† was the dowager's response. â€Å"Wyndham's secretary can manage it. It's about time he earned his wages. And if not tomorrow, then the next day.† â€Å"Will you wish for me to accompany you?† Grace asked quietly. Jack was just about to interject that, damn yes, she'd be going, or else he would not, but the dowager gave her a haughty look and replied, â€Å"Of course. You do not think I would make such a journey without a companion? I cannot bring maids – the gossip, you know – and so I will need someone to help me dress.† â€Å"You know that I am not very good with hair,† Grace pointed out, and to Jack's horror, he laughed. It was just a short little burst of it, tinged with a loathsome nervous edge, but it was enough for both ladies to stop their conversation, and their meal, and turn to him. Oh. Brilliant. How was he to explain this? Don't mind me, I was simply laughing at the ludicrousness of it all. You with your hair, me with my dead cousin. â€Å"Do you find my hair amusing?† the dowager asked sharply. And Jack, because he had absolutely nothing to lose, just shrugged and said, â€Å"A bit.† The dowager let out an indignant huff, and Grace positively glared at him. â€Å"Women's hair always amuses me,† he clarified. â€Å"So much work, when all anyone really wants is to see it down.† They both seemed to relax a bit. His comment may have been risque, but it took the personal edge off the insult. The dowager tossed one last irritated look in his direction, then turned to Grace to continue their previous conversation. â€Å"You may spend the morning with Maria,† she directed. â€Å"She will show you what to do. It can't be that difficult. Pull one of the scullery maids up from the kitchen and practice upon her. She'll be grateful for the opportunity, I'm sure.† Grace looked not at all enthused, but she nodded and murmured, â€Å"Of course.† â€Å"See to it that the kitchen work does not suffer,† the dowager said, finishing the last of her stewed apples. â€Å"An elegant coiffure is compensation enough.† â€Å"For what?† Jack asked. The dowager turned to him, her nose somehow looking pointier than usual. â€Å"Compensation for what?† he restated, since he felt like being contrary. The dowager stared at him a moment longer, then must have decided he was best ignored, because she turned back to Grace. â€Å"You may commence packing my things once you are done with Maria. And after that, see to it that a suitable story is set about for our absence.† She waved her hand in the air as if it were a trifle. â€Å"A hunting cottage in Scotland will do nicely. The Borders, I should think. No one will believe it if you say I went to the Highlands.† Grace nodded silently. â€Å"Somewhere off the well-trod path, however,† the dowager continued, looking as if she were enjoying herself. â€Å"The last thing I need is for one of my friends to attempt to see me.† â€Å"Do you have many friends?† Jack asked, his tone so perfectly polite that she'd be wondering all day if she'd been insulted. â€Å"The dowager is much admired,† Grace said quickly, perfect little companion that she was. Jack decided not to comment. â€Å"Have you ever been to Ireland?† Grace asked the dowager. But Jack caught the angry look she shot him before turning to her employer. â€Å"Of course not.† The dowager's face pinched. â€Å"Why on earth would I have done so?† â€Å"It is said to have a soothing effect on one's temperament,† Jack said. â€Å"Thus far,† the dowager retorted, â€Å"I am not much impressed with its influences upon one's manners.† He smiled. â€Å"You find me impolite?† â€Å"I find you impertinent.† Jack turned to Grace with a sad sigh. â€Å"And here I thought I was meant to be the prodigal grandson, able to do no wrong.† â€Å"Everyone does wrong,† the dowager said sharply. â€Å"The question is how little wrong one does.† â€Å"I would think,† Jack said quietly, â€Å"that it is more important what one does to rectify the wrong.† â€Å"Or perhaps,† the dowager snapped angrily, â€Å"one could manage not to make the mistake in the first place.† Jack leaned forward, interested now. â€Å"What did my father do that was so very very wrong?† â€Å"He died,† she said, and her voice was so bitter and full of chill that Jack heard Grace suck in her breath from across the table. â€Å"Surely you cannot blame him for that,† Jack murmured. â€Å"A freak storm, a leaky boat†¦Ã¢â‚¬  â€Å"He should never have stayed so long in Ireland,† the dowager hissed. â€Å"He should never have gone in the first place. He was needed here.† â€Å"By you,† Jack said softly. The dowager's face lost some of its usual stiffness, and for a moment he thought he saw her eyes grow moist. But whatever emotion came over her, it was swiftly tamped down, and she stabbed at her bacon and bit off, â€Å"He was needed here. By all of us.† Grace suddenly stood. â€Å"I will go find Maria now, your grace, if that is amenable.† Jack rose along with her. There was no way she was leaving him alone with the dowager. â€Å"I believe you promised me a tour of the castle,† he murmured. Grace looked from the dowager to him and back again. Finally the dowager flicked her hand in the air and said, â€Å"Oh, take him about. He should see his birthright before we leave. You may have your session with Maria later. I will remain and await Wyndham.† But as they reached the doorway, they heard her add softly, â€Å"If that is indeed still his name.† Grace was too angry to wait politely outside the doorway, and indeed, she was already halfway down the hall before Mr. Audley caught up with her. â€Å"Is this a tour or a race?† he asked, his lips forming that now familiar smile. But this time it did nothing but raise her ire. â€Å"Why did you bait her?† she burst out. â€Å"Why would you do such a thing?† â€Å"The comment about her hair, do you mean?† he asked, and he gave her one of those annoying innocent whatever-could-I-have-done-wrong looks. When of course he had to have known, perfectly well. â€Å"Everything,† she replied hotly. â€Å"We were having a perfectly lovely breakfast, and then you – â€Å" â€Å"You might have been having a perfectly lovely breakfast,† he cut in, and his voice held a newly sharp edge. â€Å"I was conversing with Medusa.† â€Å"Yes, but you didn't have to make things worse by provoking her.† â€Å"Isn't that what his holiness does?† Grace stared at him in angry confusion. â€Å"What are you talking about?† â€Å"Sorry.† He shrugged. â€Å"The duke. I've not noticed that he holds his tongue in her presence. I thought to emulate.† â€Å"Mr. Aud – â€Å" â€Å"Ah, but I misspoke. He's not holy, is he? Merely perfect.† She could do nothing but stare. What had Thomas done to earn such contempt? By all rights Thomas should be the one in a blackened mood. He probably was, to be fair, but at least he'd taken himself off to be furious elsewhere. â€Å"His grace, it is, isn't it?† Mr. Audley continued, his voice losing none of his derision. â€Å"I'm not so uneducated that I don't know the correct forms of address.† â€Å"I never said you were. Neither, I might add, did the dowager.† Grace let out an irritated exhale. â€Å"She shall be difficult all day now.† â€Å"She isn't normally difficult?† Good heavens, she wanted to hit him. Of course the dowager was normally difficult. He knew that. What could he possibly have to gain by remarking upon it other than the enhancement of his oh so dry and wry persona? â€Å"She shall be worse,† she ground out. â€Å"And I shall be the one to pay for it.† â€Å"My apologies, then,† he said, and he offered a contrite bow. Grace felt suddenly uncomfortable. Not because she thought he was mocking her, but rather because she was quite sure he was not. â€Å"It was nothing,† she mumbled. â€Å"It is not your place to worry over my situation.† â€Å"Does Wyndham?† Grace looked up at him, somehow captured by the directness of his gaze. â€Å"No,† she said softly. â€Å"Yes, he does, but no†¦Ã¢â‚¬  No, he didn't. Thomas did look out for her, and had, on more than one occasion, interceded when he felt she was being treated unfairly, but he never held his tongue with his grandmother just to keep the peace. And Grace would never dream of asking him to. Or scold him for not doing so. He was the duke. She could not speak to him that way, no matter their friendship. But Mr. Audley was†¦ She closed her eyes for a moment, turning away so he could not see the turmoil on her face. He was just Mr. Audley for now, not so very far above her. But the dowager's voice, soft and menacing, still rang in her ears – If that is indeed still his name. She was speaking of Thomas, of course. But the counterpart was true as well. If Thomas was not Wyndham, then Mr. Audley was. And this man†¦this man who had kissed her twice and made her dream of something beyond the walls of this castle – he would be this castle. The dukedom wasn't just a few words appended to the end of one's name. It was lands, it was money, it was the very history of England placed upon one man's shoulders. And if there was one thing she had learned during her five years at Belgrave, it was that the aristocracy were different from the rest of humanity. They were mortals, true, and they bled and cried just like everyone else, but they carried within them something that set them apart. It didn't make them better. No matter the dowager's lectures on the subject, Grace would never believe that. But they were different. And they were shaped by the knowledge of their history and their roles. If Mr. Audley's birth had been legitimate, then he was the Duke of Wyndham, and she was an overreaching spinster for even dreaming of his face. Grace took a deep, restorative breath, and then, once her nerves were sufficiently calmed, turned back to him. â€Å"Which part of the castle would you like to see, Mr. Audley?† He must have recognized that this was not the time to press her, and so he answered cheerfully, â€Å"Why, all of it, of course, but I imagine that is not feasible for a single morning. Where do you suggest we begin?† â€Å"The gallery?† He had been so interested in the paintings in his room the night before. It seemed a logical place to start. â€Å"And gaze upon the friendly faces of my supposed ancestors?† His nostrils flared, and for a moment he almost looked as if he'd swallowed something distasteful. â€Å"I think not. I've had enough of my ancestors for one morning, thank you very much.† â€Å"These are dead ancestors,† Grace murmured, hardly able to believe her cheek. â€Å"Which is how I prefer them, but not this morning.† She glanced across the hall to where she could see sunlight dappling in through a window. â€Å"I could show you the gardens.† â€Å"I'm not dressed for it.† â€Å"The conservatory?† He tapped his ear. â€Å"Made of tin, I'm afraid.† She pressed her lips together, waited a moment, then said, â€Å"Do you have any location in mind?† â€Å"Many,† he answered promptly, â€Å"but they'd leave your reputation in tatters.† â€Å"Mr. Au – â€Å" â€Å"Jack,† he reminded her, and somehow there was less space between them. â€Å"You called me Jack last night.† Grace did not move, despite the fact that her heels were itching to scoot backwards. He was not close enough to kiss her, not even close enough to accidentally brush his hand against her arm. But her lungs felt suddenly devoid of air, and her heart had begun to race, beating erratically in her chest. She could feel it forming on her tongue – Jack. But she could not say it. Not in this moment, with the image of him as the duke still fresh in her mind. â€Å"Mr. Audley,† she said, and although she tried for sternness, she did not quite manage it. â€Å"I am heartbroken,† he said, and he did it with the exact right note of levity to restore her equilibrium. â€Å"But I shall carry on, painful though it may be.† â€Å"Yes, you look to be in despair,† she murmured. One of his brows rose. â€Å"Do I detect a hint of sarcasm?† â€Å"Just a hint.† â€Å"Good, because I assure you† – he thumped one hand against his heart – â€Å"I am dying on the inside.† She laughed, but she tried to hold it in, so it came out more like a snort. It should have been embarrassing; with anyone else it would have been. But he had set her back at ease, and instead she felt herself smile. She wondered if he realized what a talent it was – to return any conversation to a smile. â€Å"Come with me, Mr. Audley,† she said, motioning for him to accompany her down the hall. â€Å"I shall show you my very favorite room.† â€Å"Are there cupids?† She blinked. â€Å"I beg your pardon?† â€Å"I was attacked by cupids this morning,† he said with a shrug, as if such a thing were a common day occurrence. â€Å"In my dressing room.† And again she smiled, this time even more broadly. â€Å"Ah. I'd forgotten. It's a bit much, isn't it?† â€Å"Unless one is partial to naked babies.† Again her laughter snorted out. â€Å"Something in your throat?† he asked innocently. She answered him with a dry look, then said, â€Å"I believe the dressing room was decorated by the present duke's great-grandmother.† â€Å"Yes, I'd assumed it wasn't the dowager,† he said cheerfully. â€Å"She doesn't seem the sort for cherubs of any stripe.† The image that brought forth was enough to make her laugh aloud. â€Å"Finally,† he said, and at her curious look, added, â€Å"I thought you were going to choke on it earlier.† â€Å"You seem to have regained your good mood as well,† she pointed out. â€Å"It requires only the removal of my presence from her presence.† â€Å"But you only just met the dowager yesterday. Surely you've had a disagreeable moment before that.† He flashed her a broad grin. â€Å"Happy since the day I was born.† â€Å"Oh, come now, Mr. Audley.† â€Å"I never admit to my black moods.† She raised her brows. â€Å"You merely experience them?† He chuckled at that. â€Å"Indeed.† They walked companionably toward the rear of the house, Mr. Audley occasionally pressing her for information of their destination. â€Å"I shan't tell you,† Grace said, trying to ignore the giddy sense of anticipation that had begun to slide through her. â€Å"It sounds like nothing special in words.† â€Å"Just another drawing room, eh?† To anyone else, perhaps, but for her it was magical. â€Å"How many are there, by the way?† he asked. She paused, trying to count. â€Å"I am not certain. The dowager is partial to only three, so we rarely use the others.† â€Å"Dusty and molding?† She smiled. â€Å"Cleaned every day.† â€Å"Of course.† He looked about him, and it occurred to her that he did not seem cowed by the grandeur of his surroundings, just†¦amused. No, not amused. It was more of a wry disbelief, as if he were still wondering if he could trade this all in and get himself kidnapped by a different dowager duchess. Perhaps one with a smaller castle. â€Å"Penny for your thoughts, Miss Eversleigh,† he said. â€Å"Although I'm sure they are worth a pound.† â€Å"More than that,† she said over her shoulder. His mood was infectious, and she felt like a coquette. It was unfamiliar. Unfamiliar and lovely. He held up his hands in surrender. â€Å"Too steep a price, I'm afraid. I am but an impoverished highwayman.† She cocked her head. â€Å"Wouldn't that make you an unsuccessful highwayman?† â€Å"Touche,† he acknowledged, â€Å"but alas, untrue. I have had a most lucrative career. The life of a thief suits my talents perfectly.† â€Å"Your talents are for pointing guns and removing necklaces off ladies' necks?† â€Å"I charm the necklaces off their necks.† He shook his head in a perfect imitation of offense. â€Å"Kindly make the distinction.† â€Å"Oh, please.† â€Å"I charmed you.† She was all indignation. â€Å"You did not.† He reached out, and before she could step away, he'd grasped her hand and raised it to his lips. â€Å"Recall the night in question, Miss Eversleigh. The moonlight, the soft wind.† â€Å"There was no wind.† â€Å"You're spoiling my memory,† he growled. â€Å"There was no wind,† she stated. â€Å"You are romanticizing the encounter.† â€Å"Can you blame me?† he returned, smiling at her wickedly. â€Å"I never know who is going to step through the carriage door. Most of the time I get a wheezy old badger.† Grace's initial inclination was to ask him if badger referred to a man or a woman, but she decided this would only encourage him. Plus, he was still holding her hand, his thumb idly stroking her palm, and she was finding that such intimacies severely restricted her talents for witty repartee. â€Å"Where are you taking me, Miss Eversleigh?† His voice was a murmur, brushing softly against her skin. He was kissing her again, and her entire arm shivered with the excitement of it. â€Å"It is just around the corner,† she whispered. Because her voice seemed to have abandoned her. It was all she could do to breathe. He straightened then, but did not release her hand. â€Å"Lead on, Miss Eversleigh.† She did, tugging him gently as she moved toward her destination. To everyone else, it was just a drawing room, decorated in shades of cream and gold, with the occasional accent of the palest, mintiest of greens. But Grace's dowager-inflicted schedule had given her cause to enter in the morning, when the eastern sun still hung low on the horizon. The air shimmered in the early morning, somehow golden with the light, and when it streamed through the windows in this far-flung, unnamed drawing room, the world somehow sparkled. By midmorning it would be just an expensively decorated room, but now, while the larks were still chirping softly outside, it was magic. If he didn't see that†¦ Well, she did not know what it would mean if he did not see that. But it would be disappointing. It was a small thing, meaningless to anyone but her, and yet†¦ She wanted him to see it. The simple magic of the morning light. The beauty and grace in the one room at Belgrave that she could almost imagine was hers. â€Å"Here we are,† she said, a little breathless with the anticipation. The door was open, and as they approached, she could see the light slanting out, landing gently on the smooth surface of the floor. There was such a golden hue to it, she could see every speck of dust that hung floating in the air. â€Å"Is there a private choir?† he teased. â€Å"A fantastical menagerie?† â€Å"Nothing so ordinary,† she replied. â€Å"But close your eyes. You should see it all at once.† He took her hands and, still facing her, placed them over his eyes. It brought her achingly close to him, her arms stretched up, the bodice of her dress just a whisper away from his finely tailored coat. It would be so easy to lean forward, to sigh into him. She could let her hands drop and close her own eyes, tilting her face toward his. He would kiss her, and she would lose her breath, her will, her very desire to, in that moment, be only herself. She wanted to melt into him. She wanted to be a part of him. And the strangest part was – right there, right then, with the golden light rippling down upon them – it seemed the most natural thing in the world. But his eyes were closed, and for him, one little piece of the magic was missing. It had to have been, because if he had felt everything that was floating around her – through her – he never would have said, his voice utterly charming – â€Å"Are we there yet?† â€Å"Almost,† she said. She should have been grateful that the moment was broken. She should have been relieved that she did not do something she was sure to regret. But she wasn't. She wanted her regrets. She wanted them desperately. She wanted to do something she knew she should not, and she wanted to lie in bed at night letting the memory keep her warm. But she was not brave enough to initiate her own downfall. Instead, she led him to the open doorway and said softly, â€Å"Here we are.†

Analysis of the Swamp in Psycho

Analysis of the Swamp in Psycho Adrian Secter Murder, Candy and Chains: An Analysis of the Swamp in Psycho â€Å" Show me a sane man and I will cure him for you.† — Carl Jung Understanding a swamp is to understand what exists in shadow. Not the shadow of night or shroud, but that of the mute. The marginal. To know the scene in Alfred Hitchcock’s Psycho where Marion Crane’s corpse-filled car is disposed of, is to know the film. Bogs have always been a place in flux, the last remainder of a primordial ooze. They serve as a place where strange organisms, many of which cannot survive elsewhere, can breed and grow. The same holds true for ideas. For a man such as Norman Bates, the swamp affords him (and his mother) the luxury of anonymity. Removed from the scrutiny of dry land, the rigors of reality, Bates’ imagination does as swamp creatures do. It experiments, it mutates and most importantly, it uses its natural habitat to dispose of any outsiders who threaten it. Given that t he absorptive nature of the swamp scene is both literal and metaphorical, Michael Fried’s â€Å"Absorption and Theatricality† readily lends itself to this analysis. While Fried ostensibly concerns himself with Denis Diderot and 18 th century French paintings, the case he presents all but begs to be deftly applied to film. A plea heard anachronistically by Psycho . This 1960 film is replete with striking scenes, and indeed it could be argued that the movie is comprised entirely of such scenes. It is however, the alluded to â€Å"swamp scene† that is most pertinent. In this scene, Norman Bates (Anthony Perkins) hides the car that his most recent victim, Marion Crane (Janet Leigh). After murdering Crane in her motel room and disposing of all the evidence thereof, Crane’s body and 1957 Ford remain. Cleverly vanishing both corpse and car, Bates wraps Crane in a shower curtain, dumps her in the trunk and rolls the car into a nearby swamp. All of this expositi on appears fairly straightforward, and would be, were the film not directed by Alfred Hitchcock. With Hitchcock behind the camera, the scene is elevated beyond mere plot and into a realm worthy of Fried and analysis. The crucial point of this scene is that the only remaining proof of Crane’s murder, the car, does not go quietly into the swamp. In filming this descent of woman, Hitchcock positions the car on a controllable platform, allowing him to adjust the speed with which the car is lowered into the murky gloom. The car is swallowed up, but only piecemeal. At first it proceeds smoothly, as the muddy waters seep into the front of the car. Then it stops. Half of a bone-white car still sticks out of the darkness. The trunk, with Crane inside, stares back at a watchful Bates. He stares back, munching on candy corn. The water finds its strength again and consumes more of the car. Then it stops. The trunk lies like a Nile crocodile, its back above the water. On the shore, Bates continues watching. At last, the water covers the trunk and its morbid contents. The camera lingers on the last bubbles, expiring as they flee towards the shore.

Issac Newton and Paving the Way for Modern Physics Essay

Issac Newton and Paving the Way for Modern Physics - Essay Example It is thus no exaggeration to say that Newton paved the way for Modern Physics. The rest of this essay will flesh out this claim. Although retrospectively, Isaac Newton’s genius and legacy are now accepted facts, there was no inkling during his early years that this was destined him. Born in Woolsthorpe, England on a Christmas Day in 1642, there were odds stacked against Newton’s survival. He was born premature and his survival was uncertain. Just prior to his birth his father had expired. Even his youth was nothing illustrious, as he even ventured briefly into managing his family farm. The turning point for Newton’s life in science came with his enrolment in Cambridge University in 1661. Here, he came under the charge of distinguished cleric and mathematician Isaac Barrow, who mentored and inspired the young man, especially in mathematics. It was under the guidance of Barrow that Newton would conceive and articulate some of the most groundbreaking scientific dis coveries of the modern era.i As per an autobiographical account written for his nephews, the major streams of Newton's scientific work were all initiated during the plague years of 1665--66, when Cambridge was closed down due to an outbreak of plague and the young Newton went home for a short break. It was during this time that some of the cornerstone discoveries and inventions of modern physics came about. During this period, the inquisitive and penetrative mind of Newton started working on the laws of universal gravitation, the development of calculus, and the nature and behavior of light. The findings he made on these projects would enable him to make vital contributions to mathematics, theoretical physics, astronomy and experimental physics. Given the magnitude of some of these contributions, it is fair to say that Newton opened new vistas in these subjects and spawned the development of modern physics. In other words, he began to invent â€Å"a set of mathematical techniques, including what we call the binomial theorem and differential calculus. He did a set of optical experiments that demonstrated that white light is composed of a mixture of all colors of the rainbow. And he theorized that the Moon is maintained in its orbit around Earth by the same force that causes heavy objects near Earth's surface to fall to the ground--in other words, he began to think about the law of universal gravitation.†ii Although there is no precise answer to the date of origin of modern physics, a strong case can be made that it started in 1647 with the publication of Isaac Newton’s Philosophie Naturalis Principia Mathematica. In recognition of the momentousness of this publication, the Encyclopedia Britannica called Newton â€Å"’the culminating figure of the scientific revolution of the l7th Century’, and describes Principia Mathematica as ‘one of the most important works in the history of modern science.’ From its inception, modem science has quite simply dominated the human mind.†iii The sweep and influence of Newton’s work on subsequent scientific developments can be gleaned from the list of his important works. In Philosophiae Naturalis Principia Mathematica, Newton gives a concise account of his discoveries in terrestrial and celestial mechanics, which is a cornerstone for modern physics. In it, he explicated how universal gravitation is operant upon objects on earth as well as in the celestial space. Further, â€Å"