Financial Health Check

Financial wellbeing is often overlooked as one of the pillars of good health, but it’s every bit as important as your physical, mental and emotional health.

Poor financial health has been linked to a range of nasty side effects like stress, depression, anxiety, sleeplessness, relationship break-down, drug and alcohol use to name a few.

Good health is often about balance. Getting on top of your financial wellbeing can certainly relieve stress and give you the time and money you need to balance all aspects of your health.

Is your financial health on track?

Please complete all sections to ensure that your financial health calculation will be as accurate as possible.

Full Name: *

Email: *

Date of Birth: *

Target Retirement Age: *

Preferred income during retirement: *

Dollars per year

Current Superannuation Balance: *

Current Annual Salary: *

Salary upon which your employer superannuation contributions are calculated

Are you an employee entitled to SGC superannuation contributions? * Yes No

Are you a member of taxable fund? Yes No

If you are a member of a state or federal government super fund the answer is NO.

Do you contribute after-tax personal contributions to your super fund? * Yes No

As a $ amount per year

Contribution Frequency: *

i.e: weekly, fortnightly, monthly, etc.

Contribution Amount: *

Per week, fortnight, etc as specified above

Do you increase your contributions each year with inflation? * Yes No

Assumed inflation rate: *

As a percentage

Do you contribute after-tax personal contributions to your super fund? * Yes No

As a % of gross salary per year

Contribution Frequency: *

i.e: weekly, fortnightly, monthly, etc.

Contribution Amount: *

As a % of gross annual salary

The calculations used in form will be based on assumed rates of return that are appropriate to your personal views about risk and return. Please complete the following questions so that we can determine your risk profile.

1. In general, how would your best friend describe you as a risk taker?

a) A real gambler
b) Willing to take risks after completing adequate research
c) Cautious
d) A real risk avoider

2. You are on a TV game show and can choose one of the following. Which would you take?

a) $1,000 in cash
b) A 50% chance in winning $5,000
c) A 25% chance in winning $10,000
d) A 5% chance in winning $100,000

3. You have just finished saving for an “once-in-a-lifetime” vacation. Three weeks before you plan to leave, you lose your job. You would:

a) Cancel the vacation
b) Take a much more modest vacation
c) Go as scheduled, reasoning that you need the time to prepare for a job search
d) Extend your vacation, because this might be your last chance to go first-class

4. If you unexpectedly received $20,000 to invest, what would you do?

a) Deposit it in a bank account
b) Invest it in safe non-bank high-quality interest earning investments
c) Invest it in shares or share trusts

5. In terms of experience, how comfortable are you investing in shares or share trusts?

a) Not at all comfortable
b) Somewhat comfortable
c) Very comfortable

6. When you think of the word “risk”, which of the following words comes to mind first?

a) Loss
b) Uncertainty
c) Opportunity
d) Thrill

7. Some experts are predicting prices of assets such as gold, jewels, collectibles, and real estate (hard assets) to increase in value. Government bond prices may fall. However, experts tend to agree that government bonds are relatively safe. Most of your investment assets are now in high interest government bonds. What would you do?

a) Hold the bonds
b) Sell the bonds, put half the proceeds into money market accounts, and the other half into hard assets
c) Sell the bonds and put the total proceeds into hard assets
d) Sell the bonds, put all the money into hard assets, and borrow additional money to buy more

8. Given the best and worst case returns of the four investment choices below, which would you prefer?

a) $200 gain best case; $0 gain/loss worst case
b) $800 gain best case; $200 loss worst case
c) $2,600 gain best case; $800 loss worst case
d) $4,800 gain best case; $2,400 loss worst case

9. In addition to whatever you own, you have been given $1,000. You are now asked to choose between:

a) A sure gain of $500
b) A 50% chance to gain $1,000 and a 50% chance to gain nothing

10. In addition to whatever you own, you have been given $2,000. You are now asked to choose between:

a) A sure loss of $500
b) A 50% chance to lose $1,000 and a 50% chance to lose nothing

11. Suppose a relative left you an inheritance of $100,000, stipulating in the will that you invest ALL the money in ONE of the following choices. Which one would you select?

a) A bank savings account
b) A unit trust that owns shares and bonds
c) A portfolio of 15 common shares
d) Commodities like gold, silver, and oil

12. If you had to invest $20,000, which of the following investment choices would you find most appealing?

a) 60% in low-risk investments, 30% in medium-risk investments, 10% in high-risk investments
b) 30% in low-risk investments, 40% in medium-risk investments, 30% in high-risk investments
c) 10% in low-risk investments, 40% in medium-risk investments, 50% in high-risk investments

13. Your trusted friend and neighbour, an experienced geologist, is putting together a group of investors to fund an exploratory gold mining venture. The venture could pay back 50 to 100 times the investment if successful. If the mine is a bust, the entire investment is worthless. Your friend estimates the chance of success is only 20%. If you had the money, how much would you invest?

a) Nothing
b) One month's salary
c) Three months' salary
d) Six months' salary

Company:

Is your financial health on track?

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