Investments Analysis

Table of content

Summary of needs and key points regarding their present situation

Aim of the strategy

Financial Situation of Damien and Natalie

Our recommendation

Cash flow of Damien and Natalie and Net worth of the couple



Summary of Needs and Key Points Regarding Their Present Situation

Matter of concern of Damien and Natalie are mentioned below:

  • They want to spend in a managed fund.
  • They want to keep their shares which they have invested in Westpac.
  • The couple wants to invest either in exchange traded fund or exchange traded fixed interest product.
  • The investment should be done with a balanced profile, but it should not be invested in superannuation fund.
  • Based on the advice they want to gain the insight whether they will achieve their goals or not.
  • They want to investigate regarding the property investment also, and want to identify whether it is feasible or not.

Aim of The Strategy

The report will provide a brief plan for Damien and Natalie while considering their present financial situation. The strategy has been developed to serve the concern of Damien & Natalie. As they wants to buy a house, they have planned to go overseas holiday every year before they have children, they wants to save fund for their wedding and lastly they have to pay off credit and car loan in short term.

Financial Situation of Damien and Natalie


  • Annual holiday this will cost them $ 10,000.
  • Overall monthly expenses are $1800.
  • Rent for their flat is $ 750 per week.
  • Finance payments, & insurances is $ 4800.
  • Living expense is $ 15,000.


  • Car which is valued $ 45,000.
  • Westpac total shares 2000.
  • Cash gift $ 15,000.

Loans of Damien and Natalie:

  • Credit card amount is $ 2500 at interest rate 20.5%.
  • Car loan amount is $ 15000 at interest rate 9.25%

Investments of Damien and Natalie:

  • Superannuation balance of Natalie is $ 48,000 which is invested in moderate aggressive fund.
  • Superannuation balance of Damien is $ 85,000 which is yet again invested in moderate aggressive fund.
  • Balance of their joint account is $ 2500.

Our Recommendation on Investments Analysis

Considering the assumptions (mentioned by them) which are; they will not earn any more money and cannot even trim their present expenses, balanced investment return where inflation rate would be 3% at the moderate pace. We recommend two options for Damien and Natalie which are:

  • Dividend paying stock
  • Peer to peer lending

Dividend-Paying Stocks

Now a days there are so many renowned companies who are paying their stocks which are higher as compare to other safe investments, for example US treasury securities and certificates of deposits. Putting all your savings into the stock market is not safe as compared to fixed income securities, however sometimes such investments falls with the potential for capital gains it is only possible if the investment has been done wisely at the time of investment.

As a result stock pays dividend with a combination of growth and income. No matters, the investor receives income on the stock even if the underlying stock price fluctuates, moreover a high dividend will enable the investor to ride out a big decrease in the stock market. Dividend paying stock is very much better option if the matter of concern is growth in stock market. As investor always shift attention from growth to earning. Although if investor is most interested in preserving its investment capital in retirement, carrying the part in present investment portfolio which has put in dividend paying stock will benefit the investor with capital appreciation and ongoing earning, moreover it will help investor to deal with inflation.

However Damien and Natalie are in their early ages, Natalie is 23 while Damien is 28; moreover they have no dependent as well. Damien is a trade person so he can put his expertise into stock markets, since he is having a expertise in stock market and financial institutions. However, the couple can put forward their knowledge into stock market by investing their time.

Peer-To-Peer Lending

Peer to peer lending has been growing at a rapid pace. Since the respective investment has been done on a electronic platform where it matches the need of particular investor and borrower in loans which gives advantage to both the parties. Peer to peer lending does not involve bank as a intermediary. There are two largest peer to peer lending companies in Australia which are Prosper, & Lending Club. Peer to peer provides highest rate of interest as compare to stock markets, as the risk may vary based on whom the investor lend money to. Yet again this is a good option for Damien and Natalie to fulfil their dreams.

Cash Flow of Damien and Natalie


  • Total salary of couple is $ 1, 60,000.
  • Cash gift from Damien’s grandfather is $ 15,000.


  • Couple’s total expenses are $ 70,000.
  • Total loan’s liability is $ 1937.50.
  • Short investment by them is $ 15,000.
  • Long investment by them is $ 50,000.

However net worth of them is $ 37, 462.50.

Conclusion on Investments Analysis

Considering the financial situation of Damien and Natalie and the condition of covid-19 in Australia the above recommendation has been made to them. Assuming that, the global pandemic covid-19 will at least last for a year (end of 2020). Damien and Natalie should invest in different options or above suggested options by us where they can easily afford the uncertainty of happening which may occur and moreover it should have the risk tolerance capacity as well.

As a result, it seems quite feasible option for the couple, the strategy has been created with considering global pandemic covid-19. In the current time where the global pandemic situation has reached at its peak, there is no guarantee that this may not affect economies further, hence there is no assurance or certainty that if the present situation has not affected the economy of Australia very much then it will still not affect reason being there is no certainty when the situation will fall at place. Moreover Damien and Natalie should choose multiple investment options for themselves while considering the present situation.

References for Investments Analysis

Robert H. Hillman, "Limited Liability in Historical Perspective", (Washington and Lee Law Review, Spring 1997), Benedikt Koehler, "Islamic Finance as a Progenitor of Venture Capital", (Economic Affairs, December 2009)

"The 1929 Stock Market Crash". Retrieved 2020-01-16.

Siddaiah, Thummuluri (2009). International Financial Management. Pearson Education India. ISBN978-81-317-1720-2. Retrieved 26 May 2020.

Graham, Benjamin; Dodd, David (2002-10-31). Security Analysis: The Classic 1940 Edition (2 ed.). New York; London: McGraw-Hill Education. ISBN9780071412285

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