Case Study – The Ramesy: Prepare a complete Statement of Advice (SOA)

Case Study – The Ramesy

Family Robert Ramesy (aged 45) is married to Georgina (aged 42). They are living in a lovely beachside suburb North of Sydney. They have two children, Leila (10) and Lachlan (6). Robert is a partner in a large law firm. Robert enjoys working in the law firm notwithstanding the fact he works very long hours and travels frequently. However, he has been thinking about how he can slow down so he can have more time to see his wife and spend time with his children. He is currently planning to stay in the same firm for at least the next 10 years, after which he is considering starting his own firm as this will also allow him to scale back his hours coming into retirement and will allow him to remain involved in retirement on a part time basis. Georgina is a chartered accountant and has recently been made a partner. She is always trying to balance between work and family.

She would like to reduce her hours; however, the cost of living pressures including the children’s private school education require her to work full time. Robert and Georgina have been discussing for a while the need for them to see a financial adviser to help them put in place a plan for retirement, particularly in light of the latest superannuation changes as they would like know whether the changes impact them and their retirement plan. They would also like a plan to manage some upcoming expenses including their planned holiday, buying a new car and house renovations.


Investment Advice

o Risk Profiling – Robert and Georgina’s attitude to risk: o Robert likes owning shares as from his financial background, he understands that Australian shares and shares in general may have higher volatility than some other asset classes, however, they tend to perform well over the long term. Robert is comfortable with taking risk if he can understand it and see that there are possible rewards.

o Georgina on the other hand was brought up in a very conservative family where her family had most of their money invested either in government bonds or term deposits with one of the major banks. Georgina’s family have always talked in front of her that they dislike share investments as they feel they can’t sleep for worry about market events. However, they have also said to Georgina several times that she could never go wrong with property investment and have always encouraged her and Robert to buy a house when they first got married. Georgina therefore is more conservative than Robert when it comes to risky investments; however, as a result of studying finance subjects at university she can see that sometimes there could be some merit in taking calculated risks to achieve better returns.

o Robert and Georgina have both indicated they wouldn’t mind taking some calculated risks to help them achieve their objectives.


You are required to assist Robert and Georgina in identifying their appropriate investment risk profile based on Robert and Georgina’s attitude to risk, goals, objectives, risk concerns, time horizon and liquidity needs, etc. You also need to address the following: • Provide specific asset allocations and how you will address investment diversification.   

• Address the issues for goals based risk profiling (i.e how investments may differ to meet specific goals with a specific or shorter time horizon). Be specific with your recommended solutions. • Specific investment portfolio recommendations providing reasoning and justifications. In this section, you need to provide your strategic asset allocation advice followed by specific product investment advice.


Your task now is to prepare a complete Statement of Advice (SOA) for Robert and Georgina. The information provided in the client scenario is to be used in preparing your calculations and advice. As the assignment is to be a SOA for clients, it should be in a suitable format and use appropriate language. Clarity and conciseness are important but full explanations are required. As part of your advice to the clients you need to address the following:

• Asset allocations and diversification.

• Investment portfolio recommendations, providing reasoning and justifications.

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