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					Private and Confidential

<Date>

David and Kate Smith
<address>

Dear David and Kate

Terms Of Engagement

Following our recent discussions we provide this scope of advice setting out the
services proposed to maximise the probability of you both achieving your financial
objectives.

In forming our proposed scope of advice we have placed a major emphasis on thos e
key experiences identified in our meeting as being important to both of you – namely:

1. Money is important to you only in as much as what it allows you to do in terms of
living the comfortable though not flamboyant lifestyle you both wish to live.

2. Security – A known future that will survive through the volatility that we are living
through today and provide you the options you desire.

3. You don’t need assets that make you ‘feel good’ and have a low aspiration for
excessive lifestyle assets.

4. T ime with family (and extended family) as a normal, happy family is critical to
you both.

5. You do not have a desire to leave a legacy to your children beyond ensuring
they are well educated and the benefit of life experiences through travel and
experiencing other cultures and customs.

6. You have developed an asset base that should deliver you flexibility and an
ongoing comfortable lifestyle. You have attempted to build this platform as it is
important to you that you are not in the position where you have to struggle later
in your lives.

7. Long term you do not want to work for the income, you want to work for the
ideals i.e. less driven by money/generating an income and more driven by Kate
and David value sets.

8. ‘Self controlled’ security is desired where the type of work taken on is based on
ideals and the delivery of greater flexibility and more time with family as
opposed to security controlled by the corporate and the corporate diary.

                         David & Kate Smith – Terms of Engagement - Page 1
                                         <your firm name>
            CONFIDENTIAL – Terms of Engagement exclusively for Kate & David Smith - <date>

Strategic Consulting & Training gratefully ackn owledge Brett Walker and Smart Compliance Pty Limited in the
development of this draft training document – refer www.smartcompliance.com . Seek your own compliance
advice prior implementation of your own version.
9. Over the next three to six years you are very determined to develop a
framework so that you are secure on a financial level in order to choose your
future path i.e. move away from the corporate security to self controlled
security. Kate would ideally like this time frame to be 3 years.

Diagnosis

Based on your desired objectives we believe the following key areas of your financial
situation require addressing with corresponding recommendations or solutions
provided through a comprehensive wealth management plan specific to the Smith
situation:

1. Capital Target Setting

Outside the value of your new home we need to objectively quantify what level of
income producing capital is required to generate a continuous inflation protected
income stream to fund your annual after tax needs . Given your young ages this
modelling process will work on the assumption of minimal ‘capital erosion’ through to
your late 60’s i.e. if you were both older and closer to typical retirement ages with a
shorter life expectancy a greater level of capital erosion would be permissible.

2. Smith Family Financial Modelling

The modelling process will identify what return above inflation is required to place
you in the financial position necessary to underpin the delivery of the self controlled
financial security you outlined as being of importance to you. The modelling process
integrates this real rate of return with your expected surplus cash flow from base
salary, short term incentives and vested long term incentives combined with
superannuation and non superannuation investment asset growth, to identify at what
point you will reach the Smith family capital target set above. This process will also
review your debt management plans to ensure you maximise your non deductible
debt position.

3. Superannuation versus Non Superannuation ‘Structural’ Planning

Because of past and present Government retirement policies you are able to build
up savings in tax advantaged structures such as superannuation. You are also able
to continue saving outside of superannuation where access to funds is more flexible
prior to retirement. Our aim will be to create a savings strategy for you that
optimises both tax efficiency and flexibility as we work together to achieve your
lifestyle goals.

4. Investment Recommendations

Based on the strategic recommendations we will then provide asset allocation and


                         David & Kate Smith – Terms of Engagement - Page 2
                                         <your firm name>
            CONFIDENTIAL – Terms of Engagement exclusively for Kate & David Smith - <date>

Strategic Consulting & Training gratefully ackn owledge Brett Walker and Smart Compliance Pty Limited in the
development of this draft training document – refer www.smartcompliance.com . Seek your own compliance
advice prior implementation of your own version.
investment manager recommendations in order to plan to deliver on the rate of
return required to achieve the targets required. The strategic asset allocation and
overall investment recommendations will be based on your stated risk tolerance.

5. Asset Protection and Taxation Planning

Given the position David holds within the organisation we believe it will be prudent as
part of a comprehensive planning process to consider the asset protection and
taxation benefits of a discretionary family trust. As <advisory firm> is not a registered
tax adviser this process would be project managed by us in conjunction with either
your existing accountant or an accountant on our specialist service provider panel.

6. Wealth Protection

A complete personal insurance review will be conducted through our outsourced risk
specialists, <risk company experts>. In terms of process <risk company experts> will
present its recommendations in our offices in stage 2 of the plan presentation
process.

7. Estate Planning

As part of the planning process we would like to canvas with you the benefits of
considering an estate plan designed to attempt to protect the family, your financial
situation and minimise taxation in a legal and logical manner. We believe your
situation warrants strong consideration of an estate plan beyond basic wills. Should
you wish to proceed with formalising an estate plan we will project manage the
process through our estate planning specialist.

Fees

The initial 12 month fee for provision of advice and complete implementation of
recommendations under this engagement will be <fee range> plus GST. This fee
covers all ongoing advice and service in relation to your financial affairs delivered
through our 12 monthly service package.

The initial year fee is collected via a monthly direct debit where <First instalment
fee> plus GST of the fee is collected month 1 reverting to <monthly fee instalments>
plus GST per month from month two onwards.

The total fee to complete this assignment may increase if there are significant
changes in your circumstances or if significant rework or amendments to the original
information provided is required. If significant additional work is required we shall
provide an estimate and agree on the scope of the additional work prior to
proceeding.



                         David & Kate Smith – Terms of Engagement - Page 3
                                         <your firm name>
            CONFIDENTIAL – Terms of Engagement exclusively for Kate & David Smith - <date>

Strategic Consulting & Training gratefully ackn owledge Brett Walker and Smart Compliance Pty Limited in the
development of this draft training document – refer www.smartcompliance.com . Seek your own compliance
advice prior implementation of your own version.
Where third party specialists are required to provide input the professional fees of
these specialists will be in addition to those of <our firm name>. We will notify you in
writing in advance before the third party is engaged.

We receive no commissions or fees from any third party. Subsequently we negotiate
on your behalf to deliver reduced costs from an investment, superannuation and
lending perspective where appropriate.

Please note our quoted fees are applicable for a period of four weeks from the date
of this Terms of Engagement.

Note that this document may not incorporate all of the services we can provide, only
those we believe will be of use to you. All our available services are explained in our
Financial Services Guide:

Engagement

Please do not hesitate to contact me on <phone number> if you have any questions
about the contents of this letter. Otherwise, please acknowledge your understanding
and acceptance of the above arrangements by signing and returning the enclosed
copy of this document to us via email, fax or standard mail.

Please note that our engagement can be terminated by either party to this
agreement where [set out reasonable circumstances for termination by either party].

Finally, please note that these Terms of Engagement should be read alongside our
FSG which explains more generally the types of services we offer and other matters
relevant to the delivery of services to our clients.

Yours sincerely
<your name>
<firm name>

Acknowledgement

We request that <firm name> undertake the scope of services, as outlined, based on
the stated fee structure.
____________________ _______________
David Smith               Date
____________________ _______________
Kate Smith Date           Date




                         David & Kate Smith – Terms of Engagement - Page 4
                                         <your firm name>
            CONFIDENTIAL – Terms of Engagement exclusively for Kate & David Smith - <date>

Strategic Consulting & Training gratefully ackn owledge Brett Walker and Smart Compliance Pty Limited in the
development of this draft training document – refer www.smartcompliance.com . Seek your own compliance
advice prior implementation of your own version.

				
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posted:9/21/2011
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