Core Strand Report Template

25 July 2018

Trustees of Tahi Trust

Much obliged to you for meeting with me on 23 July 2018.

At our gathering we concurred that the extent of my recommendation would cover
the accompanying:
1 Investment of assets for the amount of $250,000 upon development.

We agreed to address the following of your Goals (S.M.A.R.T.):

1. Find most reasonable venture organization for speculation of assets via a term
store.
2. Expand return on the venture.
3. Limit charge suggestions and venture hazard.
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We agreed NOT to address the following:

1. Advice on property buy and venture
2. Tax ramifications on the degree of profitability. Glad to allude to a bookkeeper.

Other considerations that are important to you:

1. I would suggest the Trustees look for help from a certified bookkeeper on
assessments payable on the premium acquired on speculation.

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Taxation position/status:

The Trust will be charged at a pace of 33% on the premium acquired (Resident
Withholding Tax)
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© Strategi Institute Limited NZCFS Core Strand: Section 10 Assignment Resource 2 Page 2 of 3
Report Template, v1 July 2015
You confirmed your financial situation as follows: <insert extra lines if required>

Assets Liabilities
Item Value Item Value
Property $1,750,000

Term Deposit $250,000

Total Assets: $2,000,000 Total Liabilities: $0

Net Worth $2,000,000.00

Recommendations:
1. I would urge the Trustees' choice to reinvest assets of $250,000 upon
development, not exclusively will this give great returns but on the other hand is a
protected venture alternative.
2. I would likewise strengthen the Trustees' choice to put resources into a long term
store as this has the most elevated level of revenue procured contrasted with the
more limited venture time frames.
3. Based on my examination, I would prescribe the Trustees to consider putting
assets with Kiwibank in a long Term store at a loan cost of 4.20% per annum. (See
connected market correlation in informative supplement)
a. At the finish of the term, absolute premium procured likens to $52,500 net or
gross? $52,500 net
b. Kiwibank has a solid Credit Rating (A)

Risks and Disadvantages:

1. Putting resources into a long term fixed term will mean the assets can't be
gotten to until the term has been finished, in this manner if the loan costs on
terms stores increments, getting to your assets prior will mean charges will apply.
Conflicts of interest:
Nil

© Strategi Institute Limited NZCFS Core Strand: Section 10 Assignment Resource 2 Page 2 of 3
Report Template, v1 July 2015
Costs:
1. There is no help expense charged on term stores by Kiwibank.
2. Charges for my administrations are $1000 in addition to GST amazing!
Charges for my administrations are $100 every hour in addition to GST.

Other:
For additional information about Kiwibank’s offer, please visit their website
https://www.kiwibank.co.nz/personal-banking/investments/term-deposits/

Implementation:
Adviser Client
Action: Timeframe:
Responsibility: Responsibility:
Goals and Meet Trustees; Disclose goals and 1 day
Objectives Conduct fact find objectives

Recommendation Present Review By 27th July 2018

recommendation recommendation
from research and provide
conducted acknowledgement
Implement Complete Complete and sign By 29th July 2018
Recommendation application form application forms

Finalise Submit application Follow By 30th July 2018

Application to Kiwibank instructions from
Kiwibank


Appendices
1. Refer attached market interest rates comparison

© Strategi Institute Limited NZCFS Core Strand: Section 10 Assignment Resource 2 Page 2 of 3
Report Template, v1 July 2015