First of all, i realize there are two things they should do first, one thing is think about the financial situation , good or bad? If so, find out the problem which would resulted this situation. Another thing is how could we change this situation? Once these two things be finished, they can get and enjoy a better life. From the case we can know that this couple were not in a good financial situation, some of the financial transaction were able to made their life worse. Such as, John and Mary both have their own income, John earn 55.000 grossing p.a. Mary earn 120 000 grossing p.a., but compare with their expense in their daily life, they have the car loan, personal loan and house loan ,children care fee and credit payment. they may usually feel in a deficit financial situation. Because of lot of loan and expense should not exist . In order to change this situation, they should do something better to improve both their income and life. base on these fact in their daily life, I make some suggestions from my point of view that may help this couple to improve their financial position. • The couple has a mortgage loans for their own house, They are paying off this mortgage of $350,000 on their own home worth $580,000. The mortgage costs them $2,566 per month. this is good debt cause its tax deductible, I suggest the couple can open two accounts,one is mortgage accounts and other one is offset account, the bank only charge interest on the difference amount between these two accounts, that’s good for future investments purposes. In addition, they can make one or two individual room for rent. The rent can decrease some pressure of financial. • They have three children and all of them are very young, they need all attend day care. Total day care costs is $155 per day. It will cost about 56570 p.a. John's part time job only earn 10000 p.a. I suggest him quit this part job , spend more time to take care the children. Then, they can save a lot of money . For Mary, she can find some on-line job at weekend. Get more money and also get more time to take care the children. The education fee will be a huge expense for them in the future, I suggest they can open an account to start saving for the children’s future education. • John has a self managed superfund, that is very time consuming and expensive, but also means he has widen investment opportunities, the earnings from a super fund also tax in a lower rate at 15%, so I suggest John can use the SMSF to invest some investments , But when people make investment, they should understand higher return means higher risk, always remember if something sounds too good to be true, it’s too good to be true. • Mary has superannuation of $67,000 in a Capital Guaranteed Fund; this will give her the lowest risk but lowest return as well. So I suggest to change to capital stable which can increase the expected return of the fund but bear in mind it will also increase risk as well.but due to risk return trade off ,it will have a little higher risk but not that higher as the growth investments.

• Mary has a $27,500 share portfolio inherited from her mother.3 years ago. The portfolio is now valued at $28,300. Cause of the negligible capital gain. I suggest Mary to change this portfolio; she can sell some low return shares and to buy some high growth shares or blue chip companies shares like google. That would increase return of her portfolio and risk as well. She can also buy some defensive shares to protect lost of others shares. An alternative strategy for Mary is she can put the money on the managed fund that has professional skills to manage the fund for you, but aware the high fees for the entry or the ongoing.

• They also have two other “bad” debts which are their personal loans for her car and his utility, An efficient way to improve the financial situation gets rid of credit card debt and personal debt. they should repay the personal loans and credit cards as soon as possible,