Financial Planning (Insurance) Case Study Essay

Allison has recently been promoted by her employer, Best Marketing, and now earns $135,000 p. a. working full time. She has commenced salary sacrificing 30% of this amount into superannuation, and her employer contributes Superannuation Guarantee Contributions of 9% of her remaining cash salary. The fund is a balanced growth retail superannuation fund, MM Superannuation. Her current balance is $160,000 and earns on average 7% p. a. after fees and taxes. She also has $100,000 in term life and TPD insurance cover within her superannuation fund. She drives a 4-year old Land Cruiser that is fully paid for. It has low kilometres and she expects to keep it until she retires. She will then need $30,000 to purchase a new car on top of the trade in she expects to receive from the Land Cruiser. Simon works for Newbold’s Pty Ltd, a company which makes custom furniture. He earns around $45,000 p. a. and intends doing this work for the foreseeable future. He is supplied with a work vehicle and his employer pays his SGC based on his $45,000 salary. Simon has $47,000 in superannuation savings, held within the PP Superannuation Fund. The funds are invested in a balanced/ conservative portfolio with a low allocation to growth assets that earns around 4% p. a. after fees and taxes. They are living on a semi-rural property which is valued at around $750,000, but they currently have a mortgage of $150,000 as a line of credit. They are paying approximately $1,000 per month as interest-only payments. Their other personal expenses are around $40,000 p. a. and they spend an additional $15,000 p. a. on holidays. Aside from private health cover, car, and house and contents insurance, the only personal insurance they have is the coverage provided in Allison’s superannuation fund. They do not have a will or any powers of attorney but they want to ensure they have sufficient money for their grandchildren (now aged 6 and 4 years) to attend university. They estimate they will need to accumulate approximately $120,000 (in today’s dollars) over the next 12 years to pay for this. Allison wants to work for five or six more years and they wish to pay off the remainder of the mortgage over that time. She also wants to increase the amount of money in both her and Simon’s superannuation. When she retires she believes they will need $40,000 (in today’s dollars) for their living expenses in retirement, but Simon intends to continue working part time and estimates he will earn $20,000 p. a. They intend to use Simon’s income to fund any holidays. Aside from their superannuation assets, they have $9,000 in a bank account for emergencies earning 4% p. a. , $15,000 in a term deposit earning 5% p. a. and $12,000 in a cash management account earning 5. 5% p. . They are not happy with the taxation implications of these accounts, as any interest earned on the term deposit and cash management accounts seems to go in tax. You ascertain that they both have balanced risk profiles. Required: You are required to provide written responses to the following scenarios and questions, either in short answer form or using bullet points (or both). The following attachments are included : †¢ Sample Financial Services Guide (Personal Advice) †¢ Sample Fact Finder and Risk Profile Questionnaire †¢ Sample Ongoing Service Options – Establish Relationship with Client You are preparing for an initial interview with Simon and Allison Callahan. a) Give some thought to the sort of things you would cover. Include any legal requirements and other documentation which may be helpful in the interview. For the initial interview with the clients I would cover what Azza financial services stands for, their commitment to the customer and any legal implications, go over the financial services guide (send out with letter before hand) and privacy policy and compliance. I would also make the customers aware that the information they are providing is to be used solely for the purposes of assessing their situation to help them get to a better financial position. I would allow the customers to do most of the talking, recording their responses in a fact finder, and ask the client to complete a risk profile questionnaire to get a feel for what their financial position is at the present, what kind of expectations they have on Azza financial services, how much risk they are willing to take on and if there is anything about their situation that might prevent Azza financial from providing advice to the client. )How might you ask the client to prepare for the first meeting? By sending a confirmation letter indicating how long the interview will likely be, the purpose of the interview and what is the outcome intended, advising the client if there are to be any fees paid, providing the client with a list of documents to bring (eg current insurance policies, sup er statements, current investment schemes, income and expenses, latest tax returns, valuations of assets such as property, bank and credit card statements. ) To establish a relationship with Simon and Allison, what strategies might you use to build rapport during the interview process? †¢ offer food or drink (eg coffee, biscuits, tea, water) †¢ monitor client body language and engage in similar movements to make them feel more comfortable †¢ ask open ended questions to show clients you are interested in the personally and want to hear what they have to say. d)What are the four points you must cover when presenting a Financial Services Guide? Fees and charges = explain what fees might be applicable, including benefits and commissions that could be received by 3rd parties/referrers or product providers as a result of the plan being implemented †¢ Products = outline the features of the products and services being recommended †¢ Complaints Policies and Procedure s = make sure to completely explain the procedures for handling customer complaints †¢ Relationships = explain any relationships which might influence which products are recommended or provided e)List the type of fees you could charge the clients. What are the benefits of explaining these fees to the Callahans? Types of fees which could be charged to the clients if they choose to implement the prepared plan are: plan fees (often charged regardless if plan is accepted), commissions, entry fees, management fees, account keeping fees. The benefits of explaining these fees to the clients are that there will be no nasty surprises and they will know what they are getting themselves into from the start. It also provides protection for the advisor in the event that the client deems something unreasonable. In other words, there will be no misunderstandings about the possible cost of advice. )Nominate the range of financial products and services you will be providing advice in. Name the benefits of explaining these to your clients. The financial services and products which I could be providing advice on range from simplistic things such as bank deposit accounts to general and life insurance, complex and simple investment schemes, general and specialized superannuation schemes, estate planning issues (although a lot will be directed to a solicitor if I am not qualified to provide advice on that particular area, the same goes with taxation). The benefit of explaining these to the client is that they will be more aware of what it is Azza financial services can help them with, and if they will need to be involving any third parties to complete their requirements (eg accountant or solicitor). It also takes away any misconceptions as to the outcome of the advice provided and puts everyone on the same level expectation wise. The clients also may not have been aware of particular products and services offered which once explained may change their needs and requirements which might have not previously been considered by the client. )Outline the three steps your clients should take if they have a complaint or dispute prior to contacting the ASIC. †¢ Clients should first contact their advisor to make sure that their disatisfaction is not due to a misunderstanding or something which can be ammended to their satisfaction. I would endeavour to solve their complaint within 3 working days. †¢ If the clients are still unhappy , they should lodge a formal complaint with the liscensees internal complaints process and allow appropriate time for this to be acted upon. If the clients are still unsatisfied with the outcome they may then contact the Finance Industry Ombudsman Service (FOS) for complaints involving losses of less than $500,000. FOS first trys to negociate and outcome between the involved parties, if this is not possible the matter is passed for formal assesemnt by a panel. FOS is free to clients and the decisions it makes are law to the liscensee. 2-Identify Client Objectives and Financial Situation a) What techniques or tools could you use to gather further information about your client’s goals, objectives and financial situation? Fact finder †¢ Financial documentation – tax returns, statements, scheme overviews etc †¢ Use of open ended questions †¢ Diagnostic questionnaires †¢ Risk profiling b)Using your case study, complete the attached Fact Finder with as mu ch information as you can. Remember that this document is used to collect current information as well as identify any issues, problems or constraints that may be relevant in developing your advice. See Fact Finder i)From the scenario in your case study, write down one or more specific financial goals for the generic needs provided. Wealth creation for a specific purpose |Start increasing Allison and Simons Super balances ($160K and $47K) | | |Pay for grandchildren’s university in 12 years – estimated needed | | |$120K in today’s dollars | |Wealth protection |Take out Personal insurances to avoid eroding savings if something | | |unforeseen happens – income protection, trauma, evaluation of current | | life and TPD | |Debt reduction |Pay off IO mortgage of $150K in 5 years | |Tax minimization |Save on tax on bank accounts/term deposits | | |Possibly downsize family home and move mortgage to investment property| | |to save on tax | |Superannuation |Start in creasing Allison and Simons Super balances ($160K and $47K) | | |and evaluate suitability of current funds | |Investment Planning |Possibly purchase Investment property to produce another income stream| | |and save on current tax | | |Look into other investment options to diversify current wealth | |Estate Planning |Establish will and power of attorney with solicitor | c)Write down a line of questioning that you would use in the initial interview to increase your understanding and obtain further clarification of the client’s goals and objectives. Use open-ended questions starting with What, How, When, Why and Where. †¢ Apart from what we have already discussed, tell me about any other goals, long or short term that you might have. †¢ What do you plan to do when you retire? †¢ What is your current state of health? Eg do you smoke, are you aware of any issues that could affect your ability to work? †¢ Simon, what sort of duties do you perform at work? (- for insurance purposes we need to ascertain what type of work Simon is doing in order to now which category he fits, A/B/C? ) †¢ What are the contact details of your accountant? (- Financials) †¢ If you have a solicitor, what are their details? power of attorney, will) †¢ What are your plans/goals in relation to the planning of your estate? †¢ Tell me what other possible financial details you could have overlooked in filling out the fact finder? (- no credit cards? No shares or any investments outside of super and regular bank accounts? ) †¢ What level of cash reserve do you feel comfortable keeping liquid for emergencies, and are you expecting to receive a lump sum of money in the future? †¢ What are the premium details of your current life and general insurance policies? †¢ When are you considering downsizing the family home, if at all? d) What action would you take immediately after the first meeting? Immediately after the first interview I would Clearly write down everything which needs to be investigated or researched, in relation to what types of products, tax issues, possible strategies, the sources of information and a timeline for completion. This is so that I can prove I have been compliant with the corporations Acts requirement of investigating the ‘subject matter of the advice’. I would ask the clients to sign an authority accepting the preparation and research of drawing up a financial plan and agreeing to pay any fee which may be incurred as a result of this advice. e) Simon and Allison have a ‘balanced’ risk profile. Complete the sample Risk Profile Questionnaire to reflect this. See risk profile 3- Analyse Client Objectives & Financial Situation Will Simon and Allison’s current financial circumstances and other concerns meet their objectives without your assistance? a) Why/why not? No, Simon and Allison’s current financial set up is not adequate to allow them to meet their goals and objectives. This is because they are note contributing enough in their superannuation to achieve their desired balances, they do not have any estate plans in place, their current bank accounts are leaving them paying excess tax, they are not sure how to structure their expenses in order to reach a comfortable position upon retirement in 5 years time, and their personal insurance are grossly insufficient to keep them in their current lifestyle and meet expenses should something happen to one of them. ) List the assumptions you made. †¢ Allison and Simon do not have current solicitor whom they have talked about creating a will or power of attorney with †¢ Allison and Simon are of average intelligence and have not had much to do with Financial planning services in the past. †¢ Allison and Simon do not know much about investment schemes, Superannuation regulations, Life insurance or Taxation †¢ Allison and Simon have used an Accountant in the past to prepare their yearly tax returns †¢ The average expected rate of return is 6% †¢ Expected CPI is 3% and current tax rates have been used. c) Reference information sources that you have relied on in forming your view. RG146 training Australia DFS course material and scenario †¢ Australian Taxation Office website (www. ato. gov. au) †¢ Financial Planning association website (www. fpa. asn. au) †¢ Westpac and BT Financial group case studies (internal) 4 – Develop Appropriate Strategies & Solutions a) Describe two research processes you can use to gather information about products and services you recommend to your clients. †¢ Independent research houses (eg Standard and Poors and Morning Star) †¢ Internet sear ches eg ASX, AFPA, ATO etc †¢ Product disclosures, rankings, past performance of companies, Financial review newspaper etc Refer to your case study, Fact Finder and Risk Profile Develop a strategy for each of the following points for Simon and Allison. Describe each of your strategies in terms of key characteristics, advantages and disadvantages. b) Please address Allison’s insurance requirements. Your response should include a brief description of each type of cover and actual amounts recommended. Include calculations and explanations of amounts. †¢ Term Life: – term life insurance provides a bulk payment to the beneificiaries of a person upon their death, or in some cases when disgnosed with a terminal illness the person insured can also received the payment. – offered to people from 16-75 and can renewed until age 99. Can be paid via stepped premiums (where premium increases with age, you pay more in the long run) or level premiums (same amount througout policy, 30% cheaper than stepped in long run, and indexed to CPI) – Advantages of having life insurance are that it gives the insured peace of mind knowing that they are n ot leaving their loved ones in poor financial positions upon their death and ensures they are looked after – Disadvatanges are that there are a few exclusions to the policy such as suicide within first 13 months, War, pre-existing conditions, aids, and terminal illness/disease where it is a direct result from an action which was self-inflicited. – Currenlty Allison has $100,000 worth of life and TPD insurance within her superannuation. In regards to life insurance this is unfortunately inadequate as the estimated living costs for Allison and Simon are $67,000 per anum. In order for Simon to continue meeting these expenses (whilst still working) if allison were to becomed deceased, the insured amount would need to be close to $475,000. This is because if invested at an average fixed deposit rate of 6% it would provide an income stream of $28,500 per anum to Simon. [(475000/100) x 6 = 28,500] – this along with his current net salary of $38490 come to a per anum income strem of $66,990 to meet expenses. An additional $270K should also be added to cover their existing mortgage debt and to have money left over in order to pay for the grandchildrens university education, bringing the total life benefit to $745,000. †¢ Income protection: – A fortnightly or monthly payment paid to the insured in the event that they suffer and injury or illness which leaves them unable to work – Maximum of 75% of income can be insured and person must be employed at least 25 hours per week. Waiting periods of 14-720 dys apply and benefits periods can be 1-65 years (longer the beenfit period the higher the premium) – 2 types of policies are agreed value (specified value to be paid regardless of difference bet ween insureds current and former incomes) indemnity (benefit based on insured income at time of claim. – Advantages are that the insurance provides peace of mind knowing that if the insured was to suffer from an injury or illness and are unable to generate an income that the benfit will be paid as if it were their regular income, giving them peace of mind that they could stay on top of all their financial commitments and goals whilst healing. Disadvantges are that as income protection is linked to employment, those who are unemployed or even those with occupations which are considered too risky are not able to obtain income proteciton insurance. Also, as the benefit is only 75% of income, the insured will be 25% worse off and will need to make sure this will not affect any financial commitments or goals they may have. – Allison currently does not have income protection insurance in place which could end diasterously as she earns 75% of the couples gross income. [(180,0 00/100) x 75 = 135,000)]. Allison should take out an income protection policy with a $101,250 benefit (135,000-25%) which would then provide both her and Simon peace of mind knowing that if anything was to happen they could continue paying their expenses †¢ Total and Permanent Disability: TPD insurance provides a lump sum payment to the insured after a qualifying period (usually six months) when certain criteria is met. – Criteria can be inability to perform own occupation, any occupation, home duties or all duties; these are based on the type of work the insured is in (rated AAA-E) – Immediate qualification for TPD payout if insured looses sight or a limb – Advantages of having TPD is that if the insured suffers a debiltating injury that sees them unable to return to work that they can still meet their expenses – Disadvantages are that it is not available to everyone; a new policy cannot be taken out after 60 and policies already in place automatica lly cease when insured reaches 65. Also unless rated category E, the standard level of cover criteria is ‘any occupation’, meaning that the insured may be able to perform in a role significantly less stimulating, challenging and financilally rewarding which would make them ineglibly to receive a payout even if they suffer a total and permanent diability. – As Allison and Simons expenses are $67,00 p/a and Allisons income protection benefit is $101,250, whilst Allisons still working a stand alone TPD policy would be beneficial for having a lump sum to pay off the exisiting mortgage debt of $150K, have enough money to pay for the grandchildrens university ($120K) and possible medical expenses (another $150K) – totalling a $420K TPD. Another amount for Living expenses should also be considered for the 6 years until retirement ($67,000 x 6 years = $402,000). This brings the total recommended TPD benefit to $822K which could also be bundled as a rider on Allisons life insurance to avoid overinsurrance. †¢ Trauma: – Trauma insurance provides the insured with a bulk payment when they suffer from an illness specified in the policy – Can be bundled with life insurance and a payout will decrease the life policy by the same amount – Available to people aged 16-55, or trauma for children aged 1-12 years ( waiting periods and age limit criteria apply) – Advantages are that as trauma insurance is not related to employment, people with uninsurable occuppations can still generally take out trauma insurance. Also the insurance provides peace of mind knowing that if the isured was to suffer from a specified illness and are unable to generate an income that the sum paid will cover their expenses and ease the financial pressure – Disadvanages are that there are exclusions such as death within 3 to 30 days of trauma event, trauma caused by an ntentional self inflicted injury or attempted suicide and acts of war. – In order to avoid overinsurance Allison should take out around $250K trauma insurance to cover $150K exisiting mortage debt and any medical expenses associated with the event. Allisons Income protection will also most likely be able to contribute towards the benefit amount should a defined event occur. c)Does Simon require personal insurance? If so, what types and how much? Please include reasons and calculations Simon could take out the following polices to provide stability and peace of mind for Allison in the event something should happen to him. †¢ Term Life, Trauma, TPD: As Allisons income (or insurance benefit if something were to happen to her simultaneously) alone can support the couples expenses of $67,000, I would recommend a combined life insurance, TPD and Trauma policy, of $690K for Simon [(salary of $45,000 x 6 years = $27,000) + $150K mortgage debt + $150K possible medical espenses + $120K grandchildrens education = $690,000), so that the mortgage can be paid out, the grandchildrens education can be paid for, any medical expenses which might be incurred can be paid, and a replacement income stream for simon is created leaving allison debt free if something were to happen to Simon. †¢ Income protection: It is my view that Income protection is not necessary for simon as allisons income is more than adequate to support the couple with money left over, however if they did not want to draw on this, an income protection policy could be put in place for 75% of his income. [$45,000 x 75% = $33750 ($33750 / 12 = $2812. 5]. this w ould mean Simons monthly benefit woul be $2812. 5 (75% of his monthly income). D) What is the most efficient way for Simon to contribute to superannuation and why? How much should Simon contribute? As Simon is on the lower end of the income tax scale, it is beneficial for him to make non-concessional contributions into his superannuation as he is eligible for government co-contributions for every $1 he puts in up to $1000. As Allison is on a higher MRT than Simon, if she were to salary sacrifice a larger portion of her income into both their superannuation accounts (shes currently Sacrificing $40,000 into her own, however this could be brought up to $70,000 and then she could sacrifice another $20,000 per anum into Simons in line with their goals of increasing their super balances) they would be paying less tax (as Allison in on the highest MRT and super contributions are at 15%) and they can use Simons income (on lower MRT) to put towards their expenses, thus Simon should not contribute too from his salary above the SG of 9% and non-concessional contributions past $1000 (as his super will be paid in by Allison to achieve the above stated tax advantages). Simon should also switch his investment strategy to a balanced mix as it is too conservative to his risk profile at the present. e)Is Allison contributing sufficient funds to superannuation at this time to meet their retirement objectives? Please explain. To meet their objectives of having $40,000 per anum to live off in retirement, Allison is not contributing enough to her superannuation at this point in time. Allowing for the effects of compounding interest, after 5 years Allison’s superannuation balance would have accumulated to $224,400 (at 7%). In order to provide an income stream of $40,000 Allison will need to bring her balance up to $580,000 by the time she retires in 5 years. This means Allison will need to make up the difference ($580,000 – $224,400 = $355,600) in the next five years. Allison will need to contribute another $30,000 p/a [($355,600/5 = $71,120) – her current Salary Sacrifice of $40,500 = $30,000] to her superannuation to achieve this balance and their retirement objectives. Allisons current total superannuation contributions per anum are $40,500 in salary sacrifice (30% of salary of $135,000) along with a Superannuation guarantee of 9% of her remaining salary ($135,000 – $40,500 = $94,500, $94,500 x 9% = $8505) bringing her total contribution to $49,005. f) Are their additional benefits available to Simon or Allison as a result of your strategies above? By Allison salary sacrificing more of her income she is saving astronomical amounts on tax as the contributions tax is only 15% as opposed to her MRT. As stated previously, Simon will also be eligible for the government co-contributions with his non-concessional contributions. Allison’s income protection policy (and Simons if taken out) are also tax deductible. Simon is also eligible for the low income tax offset of $804 from a maximum of $1350 for income earners of under $30,000. For Simon his amount is worked out with the following calculations: 1. [$1350 – ($45,000 taxable income -$30,000 threshold) x 4% = 546] and then 2. $1350 – 546 = $804) g)What is your recommendation regarding an investment for the grandchildren’s university education? What are the benefits of this investment? For the grandchildren’s education I would recommend investing in a balanced education savings plan (they would need to contribute $7000 p/a (at approx 7%, and with the effects of compounding interest) to reach their goal of $120,000 in 12 years) as the amount invested in taxed at a flat internal company rate of 30% however after 10 years the amounts can be withdrawn for non education purposes tax free, and as the investment is to be over 12 years Allison and Simon could take advantage of this. If it was to be withdrawn earlier, they are still in a good position as the money would be invested with a bit more risk than that of an everyday savings account and the taxation benefits still outweigh other methods, especially with the low income offset which is still said to be increasing. h) Are their bank/cash investments (total $36,000) meeting their requirements? Why/why not? What do you recommend? No, currently these investments are not meeting Allison and Simons requirements as they are held in both names and are therefore subject to Allison’s higher MRT. If Allison and Simon decided to use the advantages provided by income splitting (that is, transferring term deposits and interest bearing accounts into Simons name) then they would save on tax as Simon has a lower MRT. Allison and Simon could also think of putting this money in their Superannuation to capitalize on the 15% contributions tax or putting it into the mortgage as then they are paying less interest, however this would depend on whether or not they would be needing to keep this money liquid for everyday use and emergencies. i) How would you address their goals of paying out their home loan and purchasing the new car upon retirement? In order to pay out their home loan in 5 years time, Allison and Simon would eed to put around $40,000 P/A towards due to interest payable. After Allison’s extra salary sacrificing for both their Super accounts, the couple have around $45,000 surplus disposable income per anum. $40,000 can be used to make these extra payments on the home loan and the other $5000 can be put into a high interest savings account for the 5 years (which if invested at the average deposit rate of 6% will leave them with $29576. 10 after 5 years with the effects of compounding interest) which will leave them with enough money to purchase the new car. j) Are their estate planning preparations adequate? Why/why not? Currently Allison and Simon have no estate plan, therefore it being inadequate. I would recommend to Allison and Simon to contact their solicitor to discuss a will/power of attorney using their information we have uncovered through analyzing their financial situation here today. k)What alternative strategies did you consider? Why did you reject them? Insurance – providing insurances for Simon as well; This would be over insuring and wasting money for Allison and Simon as Simons income in relatively small in comparison to Allison’s, and she is able to cover all costs if something we to happen to Simon. Superannuation – Simon contributing more to his superannuation; the tax benefits of Allison’s salary sacrifice through decreasing her MRT far outweigh that of Simons and it was therefore better to prioritise with Allison’s SS and utilize Simon’s income for expenses. Investments – For the grandchildren’s university education, possibly investing in something more risky (eg shares) or less risky (eg Term deposits) however the tax advantages and return on the educations savings plan in comparison would leave them in a better position. 5 – Present Strategies and Negotiate Solutions Prior to Presentation a)Describe what preparations you would undertake to present your strategies in step 4 to Simon and Allison. After thorough research enabling me to form my recommendations, I would prepare a Statement of Advice with my findings, make sure to gather all product disclosure statements which are relevant, and information to back up my advice. I would also make sure there was a financial services guide within the information I would be taking to the interview. I would then call the clients to arrange a time which suits. b) What back-up information or documentation might you need? I might need to back up the performance of particular products/services I recommend (this could be provided in the form of company reports, asx reports, PDS, articles, academic studies etc) also easy to follow breakdowns of any calculations made so the client can see exactly how the strategy will benfit them. FSG and Privacy policy to assure the client of the companies principles and policies in the event of a dispute. During the Presentation c) Describe the disclosure principles and presentation requirements you must adhere to for the following documents: ? Statement of Advice The statement of advice must have â€Å"statement of advice† written across the front of it, it must be in non complex wording (â€Å"clear, concise and effective manner†), must have a â€Å"generic description of the range of financial products or strategies considered and investigated†¦Ã¢â‚¬ . The customer must receive a copy, along with PDS and FSG and must have signed and had the SOA presented to them BEFORE any implementation of strategies can be put in place. A disclaimer is also usually placed at the bottom of the SOA to protect the financial planner and affiliated companies against the working of case law – althogh this is not required by the corporations act. ? Product Disclosure Statement – The PDS needs to accompany the SOA so the clients have all the information in relation to possible products they are signing up to. Other things which need to be in the PDS include: Fees and charges = explain what fees might be applicable, including ben efits and commissions that could be received by 3rd parties/referrers or product providers as a result of the plan being implemented ? Products = outline the features of the products and services being recommended ? Complaints Policies and Procedures = make sure to completely explain the procedures for handling customer complaints ? Relationships = explain any relationships which might influence which products are recommended or provided d)List 2 objections or concerns your client might raise. How would you address these in order to gain agreement? 1. How do I know that what you recommend will work out for me in the long run? – We have based these recommendations on previous performance of these products and services, all of which you have sighted with your eyes. We cannot 100% guarantee that these potential outcomes listed will occur, however financial planning is what we specialise in and we make it our duty to look after your financial health. If we notice that the course which we have mapped out for you is not heading in the direction we have anticipated, you will be the first to know, and we will review your situation in order to alter your plan to best fit your needs, provided you would like us to provide you with this ongoing service. 2. This plan fee seems overly expensive – why do I have to pay it? – It takes a considerable amount of time, research, investigation and preparation for us to put together a plan that is tailored entirely according to your personal needs. There are no generics or assumptions made with what we are presenting you and the savings and earnings you will make as a result of our guidance will far outweigh the cost of this information. 6 – Implement Agreed Plan Simon and Allison have agreed to your plan. a) What transactional documents/authorities need to be signed by Simon and Allison? †¢ Authority to proceed / SOA and disclaimer †¢ Application forms along with PDS attached †¢ A cheque to be written to accompany application form b) Complete an Implementation Plan, in order, that details your planned actions now that Callahan’s have decided to proceed with your recommendations in step 4, providing an indication of when each must be completed. A – Adviser C – Client | No. Action |Who |When | | |Sign Authority to Proceed |C |Now | | |Provide 3rd parties with adequate notification of actions needed to be taken eg solicitor, accountant |A |ASAP | | |Complete application forms ready for c lient to sign |A |ASAP | | |Present application forms to client with PDS attached to be signed. |A + C |When ready | | |Photocopy, keep one and give other with PDS to client. | | | |Obtain Cheque from Client and attach to application form to be sent to dealer group |A |With step 4 | | |Welcome letter from dealer is issued |A /Dealer |- | | |Secure client file established (maintained for 7 years) |A |- | | |Confirm with clients that they have received welcome letter and they have heard from any 3rd parties. |A |- | | |Speak to clients about Review Service |A |When everything| | | | |is settled | 7 – Provide ongoing service You now have to address the issue of providing ongoing advice to Allison and Simon. )What environmental (economic, market, regulatory) changes, or changes to their personal or financial situation would cause a review of their plan? †¢ Interest rate changed may affect tax advantages, investment earnings †¢ New regulatory changes may grandfather or c ompletely remove current strategies in place †¢ Market booms and busts may cause portfolio mix to be outdated / underperforming †¢ Clients may have suffered a loss, or injury causing them to claim and or need to reassess the financial commitments they can keep up with †¢ Clients may have come into a considerable amount of money unexpectedly allowing for more room to move in current strategy (e. g. inheritance, lotto) Change of advisor may bring upon new light on their situation, may have a better strategy in mind. b)Describe 2 activities you regularly undertake to keep up-to-date with current legal, ethical and regulatory requirements of the finance sector. †¢ Read financial review/finance news, current company legal updates †¢ Read the AFPA reports issued and newsletter from BT financial and liaise with current financial planners c)What level of ongoing service would you propose for these clients? ( â€Å"No service† ( â€Å"Portfolio valuation† ( â€Å"Portfolio review† ( â€Å"Financial Plan review† ( â€Å"Other† – Describe d)Describe the option recommended for your client, and why you have recommended this option. Describe the level of service you will provide and the associated fees. I would recommend an annual portfolio review for Allison and Simon to ensure that they are on track to achieving their goals. This would involve checking balances and fund mixes to ensure adequate returns have been made and that products are performing as anticipated. I would prepare a letter to send out based on my finding advising whether or not a change could benefit them. As the strategies recommended for Allison and Simone are fairly basic a separate fee would not be necessary as this service would be considered to be paid for under the trail commissions. Sample Fact Finder & Risk Questionnaire 1. PERSONAL DETAILS |CLIENT 1 |CLIENT 2 | |Title: |Mrs |Mr | |Given Name: |Allison |Simon | |Preferred Name: |Allison |Simon | |Surname: |Callahan |Callahan | |Date of Birth: |1956 |1958 | |Marital Status: |M |M | | | | | Home Address: |Address: Lot 3 Wattle Road | | | | | |Suburb/Town: Hurstbridge | | |State: VIC Pos tcode: | |Home Telephone No. | | |Preferred Contact No. | | | | | | | | CHILD / DEPENDENT DETAILS Name: |Megan | | | | |Relationship: |Daughter | | | | |Date of Birth: |1981 | | | | |Current Age: |29 | | | | |Financially Dependent: |NO | | | | HEALTH DETAILS Do you Smoke: |Yes / No |Yes / No | |State of Health: |Poor / Good / Excellent |Poor / Good / Excellent | |Are you aware of any health issues that may| | | |impact your ability to earn an income? | | | |(please provide details) | | | |Notes: | 2. EMPLOYMENT DETAILS |CLIENT 1 |CLIENT 2 | |Employment Status: |( Unemployed |( Unemployed | | |( Full Time Employed |( Full Time Employed | | |( Self Employed |( Self Employed | | |( Part-time |( Part-time | | |( Retired |( Retired | | |( Other |( Other | |Employer Name: |Best Marketing |Newbolds Pty Ltd | |Position Title: |Marketing |Employee | |Primary Duties: |Marketing |Custom Furniture | |Work Address: | | | |Current Work Phone No. : | | | |Employment Security: |Secure – just promoted |Secure – intention to stay long term | |Are you Contemplating leaving your employer? |In 5-6 years |Not in the foreseeable future | |Do you foresee any substantial change in |Planned retirement in 5-6 years, possible |In 5-6 years will reduce hours to part time | |your income in the next 2-5 years? reduction in take home pay in the lead up to|– income will be approx $20K p/a | | |this | | |Notes: | | | OTHER ADVISER DETAILS Accountant |Name: | | |Company: | | |Contact Detail: | | Do we have authority to contact? ( Yes ( No Solicitor Name: | | |Company: | | |Contact Detail: | | Do we have authority to contact? ( Yes( No ESTATE PLANNING DETAILS | |CLIENT 1 |CLIENT 2 | |Do you have a current Will? |No |No | |Date of Will / Last Reviewed: | | | |Power of attorney |No |No | |Type / Name of Attorney? | | |Do you have Funeral Plans? |No |No | |Do you have any specific intentions |Intention to pay for grandchildren’s |Intention to pay for grandchildrenâ€℠¢s | |regarding your estate distribution? |university in the approx 12 years (approx |university in the approx 12 years (approx | | |$120K in today’s dollars) |$120K in today’s dollars) | 3. FUTURE NEEDS OBJECTIVE AND GOALS |E. g. Current income needs, retirement income needs, diversification, tax minimisation, capital growth, investment security, wealth creation, | |eliminate mortgage etc | |Reasons for seeking financial advice | |Gain assistance with making the transition to retirement and planning the next five years | | | | | |Short Term (1 to 3 years) | |Save on tax on bank accounts/term deposits through possibly restructure | |Start increasing Allison and Simons Super balances ($160K and $47K) | |Look into other investment options to diversify current wealth | |Medium Term (4 to 7 years) | |Pay off IO mortgage of $150K in 5 years | |Buy new car (through trade in 9 year old land cruiser) worth $30K In 5 years | |Have a $40K (today’s dollars) p/a retirement income stream in 5 years | |Long Term (7 year plus) | |Pay for grandchildren’s university in 12 years – estimated needed $120K in | |today’s dollars | | | | | RETIREMENT PLANNING Retirement Details |CLIENT 1 |CLIENT 2 | |Plan ned Retirement Age: |59/60 |undetermined | |Retirement Income required: |$40K (today’s dollar) |$40K (today’s dollar) | |After retirement, do you intend to work |NO |Expected Income= | |again either on a full-time or part-time | |$20K | |basis? |Till age: undetermined | |What capital expenses will you have in |$ |$ | |retirement? (Please state expense and | | | |value) | | | |Would you like some assets left to your |$ |$ | |estate? Please detail) | | | |Notes: | | | | | 4. FINANCIAL DETAILS PERSONAL BALANCE SHEET Lifestyle Assets | |Owner |Date Acquired |Value |Associated Debt | |Principal Residence: |Allison and Simon | |$750,000 |$150,000 | Contents: | | | | | |Motor Vehicle/s : |Allison |2006 |Land Cruiser |No debt | |Caravan / Boat / Trailer: | | | | | |Investment Property: | | | | | |Other: | | | | | | | | | | | | | | | | | | | | | | | |Total | | | | | Investment Assets Investment | | | | | | | | | | | INCOME DETAILS | |CLIENT 1 |CLIENT 2 | |Income: |$135,000 |$45 ,000 | |Investment Income: |$1770 p/a interest (bank accounts) |$1770 p/a interest (bank accounts) | |Centrelink Income: | | |Pension/Annuity Income | | | |Other Income: | | | | Less Income Tax |$38554 |$7580 | | Less Medicare Levy |$2050 |$700 | |Total Net Income |$94426 |$38490 | |Combined Net Income |$132,916 | EXPENSE DETAILS |COMBINED | | |Food: | | | |Entertainment: |$15,000 | | |Transport/Vehicle: | | | |Council Rates: | | | |Amenities: | | | |Rent: | | | |Mortgage Repayments: |$12,000 | | |Other |$40,000 | | |Total |$67,000 | | SURPLUS DISPOSABLE INCOME | |COMBINED | | |Annual: |$65,916 | | |Monthly: |$5,493 | | PLANNED MAJOR EXPENSES |Nature of Expense |Approx. Expense Amount |Expected Date | |Grandchildren’s university |$120,000 in today’s dollars |12 years | |Purchase new car |$30,000 |5/6 years | | | | | | | | | |What cash reserve do you require for | | | |emergencies or unforeseen expenses? | | | |Are you expecting a future lump sum or | | | |inheritance? | | | |If so, how much? | | |Notes | | | 5. SUPERANNUATION & INSURANCE SUPERANNUATION |Company |Policy No. |Employer/ Personal | |Are any of the above policies preserved? | |No | |Has a tax deduction been claimed for part/all? |Yes |No | |Are there any exit fees applicable? |Yes |No | LEAVE PAYMENTS Type |Expected Receipt Date |Anticipated Amount | |Annual: | | | |Long Service: | | | |Other: | | | |Have you recently received a redundancy package? |Yes |No | |If you have recently received a redundancy package, please provide notice of payments. | GENERAL INSURANCE Insurance Description |Policy Number |Owner |Date Commenced |Sum Insured |Premium Payable | |Term Life and TPD |Allison |$100,000 | | | | | | | | | | | | | | | | | | | | | | | | | |Notes: | | | 6. INVESTOR RISK PROFILE Your attitude to risk is probably the most important factor to consider before investing. To achieve higher returns, you will have to be prepared to accept a higher risk of capital loss. This is because the funds and assets that offer high returns are generally more volatile than those producing lower returns. It is what we call ‘risk/return trade off’. We will recommend investment strategies to match your investments to your risk profile. Investing across the various investment sectors according to your risk profile is called diversification. For example, instead of investing only in property, or only in shares, you might invest a proportion in both, or even include cash or fixed interest to create a balanced portfolio. You are a balanced investor who wants a diversified portfolio to work towards medium to long-term financial goals. You require an investment strategy that will cope with the effects of tax and inflation. Calculated risks will be accepted to help you achieve good returns. 17 – 23 Moderately Conservative – A Low Risk Taker You are a moderately conservative investor seeking better than basic returns, but risk must be low. Typically an older investor seeking to protect wealth that you have accumulated, you may be prepared to consider less aggressive growth investments. 9 – 16 Conservative – A Very Low Risk Taker You are a conservative investor. Risk must be very low and you are prepared to accept lower returns to protect capital. The negative effects of tax and inflation will not concern you, provided your initial investment is protected. 7. CLIENT STATEMENT / AUTHORISATION |I/We herby declare that the information set out in this form is true and correct to the best of my/our knowledge. | |I/We are not aware of any other information and have not disclosed to the person to whom this form is given any other information | |which would be relevant to the making of a recommendation by a Mentor Financial Planning Representative. | |I/We give permission for this information to be used for the preparation of my/our financial plan and I/we understand that the | |investment recommendations will be based solely on the information supplied in this form. | | |I/We also acknowledge that: | |( |I/we have received, read and understood the Financial Services Guide before any advisory services were provided; | |( |I/we permit this document to be passed in confidence to any member of Mentor Financial Planning Pty Ltd; | |( |Lim ited Information Provided | | |I/We have provided limited financial information. I/We have limited the product(s) or objective(s) that can be advised on | | |to: | | |If you are seeking limited advice of a particular nature you must make this known at the time of the interview and you | | |should recognise that the recommendations will only relate to that limited advice being sought and may not be appropriate | | |considering your overall situation and objectives. | |( |Tax File Number Permission | | |I/We give permission for my/our tax file number(s) as provided, to be held only by Mentor Financial Planning and be | | |forwarded to financial institutions as requested or as necessary. |( |Engagement Application | | |I/We request that Mentor Financial Planning investigate research and provide suitable options to the financial objectives | | |outlined in this questionnaire. | | | | | |I/We understand that the preparation fee of $500 is payable for the work to be undertaken. This fee may be credited | | |against my establishment fee should I/We proceed to implement any of the recommendations provided by Mentor Financial | | |Planning. | | |Client 1 | |Client 2 | | | | | |Signature: | | | | | | | | | |Date: | | | | |8. Adviser’s Declaration | I declare that: a) the information contained in the Fact Finder is an accurate and complete record of the information obtained from the client(s); b) The client(s) was provided with a copy of the Financial Services Guides before any advisory services were provided. |Adviser’s Signature | |Date | | | |Additional Important Information for the Client(s) | |If incomplete or limited financial information has been provided: | | | |I, as your Adviser, will not be able to undertake a full needs analysis of your individual investment objectives, financial situation | |and particular needs; | |There is a possibility that any recommendation given to you may not be fully appropriate to your individual objectives and needs, | |especially those which I, as the Adviser, do not know; and | |You as the client must carefully ssess the appropriateness of the recommendations to your own individual investment objectives, | |financial situation and particular needs before acting on them. | To Whom It May Concern Please accept this letter as my/our authority to provide any information requested and documentation if required to Azza Financial Planning (or their representative). Please accept a photocopy or facsimile of this letter, as the original will remain on file at the offices of Mentor Financial Planning. Correspondence should be sent to Level 2, 349 Collins Street Melbourne VIC 3000 This authority should remain in force until withdrawn in writing by me/us. Thankyou. |Allison Callahan | | | |Client 1 Name | |Signature | | | |Simon Callahan | | | | | |Signature | | |Client 2 Name | | | | | | | | | |Client 1 D. O. B. | |Client 2 D. O. B. | | | |___/___/___ | |___/___/___ | | | | | |Lot 3, wattle road, Hurstbridge, VIC | |Address | | | | | On Going Service Options 1. The â€Å"No serviceâ €  option This generally relates to a one off investment placement based on the agreed investment strategy in the financial plan. In choosing this option, no ongoing service or review of the financial plan and the investment portfolio is provided to the client unless specifically requested by the client or upon the recommendation of the planner. 2. The â€Å"Portfolio valuation† option This service provides reports on the value of your investment portfolio only. The fee charged will depend on the frequency of the reports. In choosing this option, no ongoing service or review of the financial plan is provided to the client unless specifically requested by the client or upon the recommendation of the planner. 3. The â€Å"Portfolio review† option This service provides reports on the value of your investment portfolio. The fee to be charged will depend on the frequency of the reviews and will be agreed at the time. The minimum fee is $N/A but this may be higher depending on the complexity of the review. This service includes: An annual/half yearly/quarterly review of your existing investment portfolio and its performance looking at further investment opportunities, if appropriate establishing if there have been any changes in legislation, the economic environment and state of the financial markets that may impact on your recommended investment portfolio In choosing this option, o ongoing service or review of the financial plan is provided to the client unless specifically requested by the client or upon the recommendation of the planner. 4. The â€Å"Financial Plan review† option This service provides for an annual/half yearly/quarterly review of the overall financial plan strategy and the investment portfolio recommend ed. Each review will be presented in the manner of a written report and recommendations. The fee to be charged will depend on the frequency of the reviews and will be agreed at the time. The minimum fee is $__500________, but this may be higher depending on the complexity of the review. This service includes: roviding reports on the value of your investment portfolio; an annual/half yearly/quarterly review (including comments) of your existing investment portfolio and its performance; looking at further investment opportunities, if appropriate; establishing if there have been any changes in legislation, the economic environment and state of the financial markets that may impact on your recommended investment portfolio and the overall financial plan strategy; establish if there have been any changes to your personal circumstances or financial goals and objectives; ascertain if the overall financial plan and the investment portfolio is continuing to meet your financial goals and objec tives (including an insurance review); and making any new recommendations (if necessary).

Society and Rules

Expository piece Carla Franz While the rules of society are meant to protect us, they exclude some individuals. ‘ As humans grow up into parts of society, they are connected by the rules which guide them in their thoughts and actions. However, as time progresses and societies change, many individuals are excluded due to new rules that surpass them. Stand by me demonstrates the only do laws change over time, but the societies that dictate them change as well.These rules are changed by the people who set examples to the est. of the world; a powerful example is the classic film ‘Stand by me' which demonstrates the will of the four protagonists who are excluded from their society. Gourde, Chris, Teddy and Fern are the main characters that have negative relationships and past with their family; this had a major impact on their segregation from their surrounding society.A key scene from the film is the conversation between Gourde and Chris; they state how they acknowledge the w eirdness in each other but also agreed that ‘everyone is weird'. This is one of the many prime examples how any individuals are excluded due to there weirdness and failure of following others in ‘society. Many individuals have been excluded from society over the years. Especially as young adolescents, we can become immersed into the rules of society.A well known quote is ‘all actions have benefits or consequences'. This saying is demonstrated in many of today's societies. Being individuals, if you do not fit in or follow societies rules you will be teased or looked at funny, people try to change themselves to fit in and live up to societies satisfaction. Author Glenda Millard explores this in A Small Free Kiss in the Dark. Skip one of the main protagonist's in the book who has Just progressed into his early adolescent years showing his innocent view of his world.Skip was an odd one at school, he wrote notes to his teacher making up excuses for not having friends; h e also invented other notes he would take to school to have permission to put his hands in the sky because that is how he finds about the light. One of the many excuses Skip has for not having friends is a simplistic note explaining that ‘he isn't good at math, the others might think he was dumb'. The note Skip wrote is telling us firstly, skip is scared he will be Judged by society because he is not good at math's and portrayed as ‘dumb', secondly he was often excluded at school because he didn't like the thought of having a friend.This is another example of how young individuals are excluded from society due to not being the smartest in his class or not wanting to associate with other kid's at school. Political exclusion is another major form of being excluded in society. Being denied the basic right to participate way in which society excluded the four protagonists, because of their past, showing the audience the brutal ways in which many individuals are excluded.A Sm all Free Kiss in the Dark also powerfully demonstrates how the four protagonists often grapple with their past and come together as excluded individuals of their own society. People come up with new rules to fit the changing society surrounding them, from the things people wear to the things people eat. As time has shown the changing says society operates in, it also bares the individuals that are excluded because of the rules that are ever changing.Not in who runs the country and how it is run has affected the human race since the creation of communities. North Korea, Russia and Syria are Just a few of the many countries in the world who have dictatorship rulers, this form of commands the rules in which their society runs by. Some of the rules set forth by the surrounding societies in Arabic countries have a substantial effect on the population, rules such as having a male accomplice when in public can make the male population feel excluded from there society.As previously mentione d the political exclusion affects the surrounding societies substantially, making some individuals feel excluded and left out. The rules of society are meant to protect and guide us in greater communities. Some of the rules exclude individuals, because of religion, fashion and in political ways. People try to change themselves to fit in society, because if you don't blend in with society you will be looked at differently and simply be excluded.

Case Study Essay Example | Topics and Well Written Essays - 500 words - 46

Case Study - Essay Example The academic advisors also aim to ensure that all the students get an advising experience that is well rounded to navigate challenges and opportunities to fulfill career related and educational goals. They also work with students to transform their unique skills and, thus, create transformational change for their families and themselves (Kelly, 2003). Finally, the goals set by the academic advisers are to help their students to successfully navigate college, whatever their background, and to provide them with the tools they need to thrive in the university. However, there are several obstacles in attempting to improve leadership. One has to do with giving motivation to those one is leading, especially because the students will not go far if they do not feel motivated to achieve the set goals (Gilbert, 2012). Those who lack focus or interest in their goals will undermine the leader’s authority and efforts, although this could be fixed by clearly communicating the mission. Leaders also, sometimes, find it difficult to cultivate an experience of leadership. In order to be effective, a leader must ensure that he/she is capable of effective leadership. Skills that are required to execute particular goals cannot be learned in a classroom setting and, as such, they require some experience so as to execute them. For this reason, lack of experience is an obstacle to improvement of leadership capabilities. Lack of open communication is also an obstacle to improvement of leadership. This could involve finding a way for them to be approacha ble sans losing their authority. For a leader to improve he/she has to depend on open communication and this proves to be an obstacle sometimes. Finally, it is difficult to encourage those that one is leading to be proactive and to take risks with innovations (Gilbert, 2012). According to Matthew L.

Are Parts of the U.S.A. Patriot Act Unconstitutional Research Paper

Are Parts of the U.S.A. Patriot Act Unconstitutional - Research Paper Example A Patriot Act is not unconstitutional because†¦ 1. The Patriot Act enhances effective communication between various agencies that fight against terrorism 2. It liberalized many rules with respect to investigation and surveillance to help Federal agencies responsible for crime prevention. 3. It provides increased funding for victims of terrorist attacks and their families, as well as for the rebuilding of business and infrastructure that are damaged by terrorism 4. It helps investigating agencies to deal with the technologically sophisticated terrorists. 5. It cut off support networks that provide enough support to terrorist groups The major criticism labeled against the Patriot Act is the threat raised by it to the fundamental rights and liberties of people. In the name of safety and security, investigating agencies can interrogate and imprison anybody based on suspicion. It is not necessary that the information gathered by the investigating agencies is always correct. False inf ormation lead investigating agencies to arrest even innocent people in the name of Patriot act. It is impossible for Americans to keep their privacy intact after the introduction of this act. In short, patriot act prevents people from enjoying their natural rights, freedom and liberties. The second disadvantage of patriot act is the fact that it allows indefinite imprisonment of anybody based on mere suspicion without access to counsel or meaningful recourse to the Federal courts. Before the introduction of Patriot act, it was mandatory to the investigating agencies to present a person in custody in courts within a specified time period. Now it is possible for the investigating agencies to keep a suspected person in custody as long as they wish without presenting him in the courts. Even innocent people forced to suffer the torture of investigating officials because of these controversial clauses in patriot act. â€Å"The Patriot Act provides sweeping power to government agencies to monitor the personal habits of not only those who have been identified as suspected terrorists, but anyone residing in the United States as well as United States citizens residing abroad†i. The third disadvantage of patriot act is the permission given to Federal agents to conduct searches without search warrants. Earlier, search warrants were mandatory before conducting any searches in houses or apartments. Now it is not necessary for the investigating officials to get the permission from courts to conduct searches in any locations. It should be noted that even during midnights, investigating agents creating troubles to innocent people. In short, investigating officials can misuse the authority given to them by patriot act to conduct searches without taking permission either from the courts or from the suspected person. The patriot permits FBI to monitor even religious services, internet chat rooms, political demonstrations, and other public meeting

Literature Review for Woolworths Research Essay - 1

Literature Review for Woolworths Research - Essay Example Marketing scholars and practitioners have long agreed that the factors which determine a customer’s decision to shop in a specific store are integral as it not only where customers choose to shop, but also what they shop and how much they buy. The key factors identified that influence customer’s store choice behavior include store price, store assortments, convenience in location, availability, and a variety of merchandise, value added store services, personal interaction, physical appearance and promotional activities in such stores. This factor comes third after location convenience and low prices. Assortment size may be in terms of a broad ray of products and the retail price formats which may be either promotional pricing format (Hi-Lo) where prices change with changing seasons, or it may be everyday price format (EDLP) where prices are lower than competitors. Indeed in their analysis of price formats on store patronage, Bell, Ho and Tang (1998) showed that customer s often traded off between lower prices and convenience where they would most likely visit a Hi-Lo store when they are purchasing less, and hence convenience beets price or they would most likely choose EDLP stores when they are purchasing more irrespective of the location of the store, hence low price beats convenience. Briesch, Chintagunta, and Fox (2009) affirm this by showing that customers would be willing to travel a considerable distance to stores that have a wide assortment of products and low price to make their purchases.

The ICT Industry in Canada Term Paper Example | Topics and Well Written Essays - 4500 words

The ICT Industry in Canada - Term Paper Example According to the research findings the ICT industry within any societal setting is vital in ensuring progress to the economy to deliver an update on the necessary resources. The resources that are under consideration issue support to the political and economic sustenance. The desire to analyze the ICT provision of any company is attributed to the requirements presented in identifying the main contributions of the entity. The ICT industry has been a leading form of intellectual property in the modern century with a provision issued to mark the features that have contributed to its advancement. Canadian ICT sector has made leading developments in creating stability in the economy, while maintain a noticeable balance in the principles that are applied to create sustainability in the economy. The ICT industry in Canada has presented numerous developments in the generation of GDP, and measures to maintain its effectiveness need to be implemented to realize its contributions. Canada had es tablished its economy as the leader of the information advances, and recent advancements have seen it fail to maintain its status among the developed powers that are capable of offering sustainability within the ICT sector. Policies to balance the ICT industry with the developmental inputs presented within its economy are the factors that might revive the industry. The major composer of the industry has been articulated to comprise minor companies. These are an estimated 33, 000 firms, 80% of the number specializing in software and computer development. The other numbers are concerned with wholesaling and manufacturing. On the other hand, companies with a large work force form the minority in the industry with an estimated 20% of firms that are engaged in ICT sector. The value of the ICT composition with the manufacturing and software development sector has been boosted by the need to provide investment of qualified professionals, who are capable of delivering the developments to ac hieve the economic progress desired. However, the large companies with an employee turnover of 500 professionals support the sector with the need to provide regulation of the needed gadgets. In 2010, leading companies owned the number that constituted the manufacturing segment of the ICT area. These companies held a minimal employee capacity with the number of employees estimated to be 50 per firm, and the record revealed that this number in the total ICT share occupied 3.7%. Contribution to the economy Research conducted revealed that the ICT sector had increased its total revenue between 2009 and

James J Hill and E H Harriman Compare and Contrast Term Paper

James J Hill and E H Harriman Compare and Contrast - Term Paper Example While J. P. Morgan stood for the banking industry, the oil industry could not be spoken about without mentioning John D. Rockefeller, iron and steel industries were synonymous with Andrew Carnegie’s name, and lastly, as we all know, Harriman was the man who stood for the railroads (Klein 1). In The Life and Legend of E. H. Harriman, the author of the biography, Maury Klein, offers us the first in-depth story about Harriman. The biography covers his influential times in the industry. It spans more than seventy-five years (Klein). E. H. Harriman’s life has been understudied, for the most part, but he was truly influential in the growth of American economy. While Harriman was successful in bringing ‘dead’ companies back to life, James J. Hill was just as successful in the rail transportation business. Their lives changed America. As the story goes, we are put in the loop on how Harriman used to be a banker in Wall Street up to his 50th birthday (Klein, 65). Af ter that, he got into the railroad business in the year 1897. That is the time he took control of the then Union Pacific Rail Road. The company was emerging from a period of bankruptcy. Harriman is credited with the success of modernizing each and every aspect of the company’s operations. Harriman provides us with new insights into the controversies and the myths that surround the career of one of American’s greatest businessmen. Moreover, the book goes on to reassert the position held by this great mind as a true business titan of the turn-of-the-century. James J. Hill: Empire Builder of the Northwest is a biography of a legendary capitalist, James Hill, to whom great changes were credited in the Northwest. The author of the book, Michael P. Malone, is a gifted historian. He is also a respected writer. This is well, evident, in the manner in which he has carefully penned the remarkable life and times of one James J. Hill. In focus, Michael Malone’s biography on James J. Hill is selective. Additionally, it is interpretive in the method it has used. Nonetheless, all these angles at this biography are just like all the other books on the same topic series. However, Michael Malone avoids the pitfalls of other biographies that came before this one. The other biographies often present hagiographic pictures or business histories that are very slim in content. This is not the case with this biography penned by Michael Malone. James Hill is put fully into the context of the times he lived and did business and put his mark on American business history. Worthy of note is the fact that the author, Michael Malone has put emphasis on the effect James Hill’s actions had on America; more specifically, the regions in which he lived and did business.  

The Impact of Television on the 2008 Canadian Elections Essay

The Impact of Television on the 2008 Canadian Elections - Essay Example It i a very good mean of entertainment. It i a ource of entertainment for all age group,right from children to the aged. One can watch colorful animated cartoon for children a well a health how and port for adult. One can even watch movie at home and thu the time and train one ha to take to buy ticket or go to the theater i aved. A peron who i worned out from office can come home and relax himelf to watch hi favorite TV program. Televiion can never bore anyone and erve a a good time pa. Televiion i alo a good TV for a peron to be upgraded with the knowledge of what i happening around the world. Televiion or I can ay ' The Fifth Etate ', next to newpaper can tell people of the recent event happening around u. People now can ee the Iraq war in their drawing room through private TV channel like CNN, BBC, FOX etc. hown on TV, which would never be poible without the televiion. Cinema award and important port pogramme are being watched live nowaday by million of viewer through TV. Thi TV can even change the political life and ha changed it in many countrie. People can upgrade themelve about the government epecially during day of election and budget eion. For example,the downfall of Rajiv Gandhi in India due to the Bofor' crii wa becaue of different type of ma TV like the televiion. Through televiion one can know the detail of recent dicoverie,innovation ,invention and achievement viually happening around the globe. ... Hence,apart from telephone and airplane,I feel televiion are an innovation that ha changed our live and i one of the main reaon for making the world a 'global village'. The introduction of televiion and it component into the political proce ha greatly influenced politic. Televiion ha given politician a whole new way to communicate and expre their belief to voter. There are a few ignificant effect that thi form of TV ha had on the political proce. Firtly, televiion tend to make political life more fluid and volatile. Outcome are much harder to predict with campaign now becaue a ingle performance before a huge audience can eaily end or precipitate iue almot intantaneouly. For intance, during the 1988 federal election, John Turner' TV debate performance reurrected the Liberal party and almot made them win the election. If it wan't for the televied debate, the Liberal would have urely been doomed. Televiion alo force much of the backtage machinery of political life to endure extremely heavy expoure, making it much more open than it ued to be. Prior to the TV, politician and their aociate were only known by their public appearance and campaign, leaving what happened outide thee appearance in the dark. Becaue of TV and the candid camera, the politician and the election can be looked at in more depth now. Political party convention and other 'behind the cene' event can now be televied and hown to the general public. The nationalization of politic i alo a reult temming mainly from televiion. Becaue the party leader i the main peron een on TV, politic at the riding level tend to uffer greatly. Voter do not really care about who i running in their riding; they are more concerned about the party

Governments Various Macroeconomic Objectives and Their Importance to Assignment

Governments Various Macroeconomic Objectives and Their Importance to UK Economy - Assignment Example The growth could be affected by external or internal factors to form variations in spending that either exceed or support the production of an economy. From such, the downturn and peaks in economies may be exhibited over time. The UK government has opted to promote economic growth with reasonable measures to prevent future negative effects. In the UK, economic growth is a crucial factor that determines the availability of funds for public expenditure, minimising tax burdens, and servicing government debt (The long game, n.d.). For most governments, economic growth comes with the creation of new jobs as more investments are made, which provide employment opportunities, contribute to the growth of domestic product, and support in eradicating poverty levels. At a higher level, the nation associated with the growth achieves more respect in the world community and increases its ability to solve its internal economic problems, support its citizens and maintain its pride as a nation. It is also a measure of determining whether the economic target is being realised. The disadvantage is that economic growth may be steered without appropriate measures to preserve the environment and the resources. In some cases, the growth has been realised unsustainably, excessively exploiting the natural resources and degrading the environment, which reduces the production capacity of future generations (Everett, 2010). These natural assets should be maintained to sustain growth in the long run. Low inflation Every inflation has a cost in the long run, after the sustained growth in the overall price level. Economists of most countries strive to maintain inflation in their countries, but since it is an inevitable factor, the best economies aim to achieve low inflation... The researcher states that every nation tpday aims at achieving steady economic growth. It appears to be a common and prioritised objective of most developing countries to improve the living standards of the countries’ population. It is a policy that is concerned with increasing the national output through an increase in goods and services generated, which are factors that enable improvements in living standards of masses in a country. The technology and innovation were mentioned in the study as the latest trend in economies, that is aimed to achieve production efficiency, allowing operating systems and automation to speed up and increase productivity and quality that would take human labour ages to complete. The researcher suggests that enhancing technology in different sectors of productivity could bring about a product or process innovation, which leads to efficiency in the long run. However, production efficiency requires investment and funds. Governments have to be willin g to fund research and development for the creation and realisation of new ideas to improve productivity and support its efficiency, improve human capabilities, know where to invest next, and allocate resources to avoid inefficiency in the future. The researcher then concluds that the objective concurs with the United Kingdom’s long term objective in improving labour productivity and capital investment, that hopefully would increase production efficiency and competition in trade within the European market.

Research paper about world Trade organization (WTO) impact on

About world Trade organization (WTO) impact on environment - Research Paper Example That is, in the quest to achieve economic development, countries aided by economic initiatives like World Trade Organisation (WTO) are indulging in many constructive activities for the development of people, including the environment. At the same time, certain destructive or dubious activities are carried out by the people or country because of WTO, destructing many lives. Like a simple rope which can also be used to constrict one’s neck, the development activities of WTO have turned out to be life destructive activities, damaging the lives of the humans themselves as well as the earth’s environment in which they live. Apart from the highly industrialized countries, this phenomenon is also happening in developing and least developed countries (LDC), mainly after the inception of WTO. So, this paper will analyze how WTO causes environmental problems and also avoids it. Among the many economic based movements, globalization is the one which had and is still having major impact on the economic development of many countries and its people worldwide. Economic part of globalization is the key because with the whole world becoming a kind of global village, barriers between the countries are broken with integration happening mainly in the economic aspects. After the advent of globalization, the main initiative which opened up the markets of the countries is the establishment of WTO in 1994. The World Trade Organization (WTO), founded to supervise and liberalize the international trade in the post-globalization era, was officially initiated on January 1, 1995, with the actualization of the Marrakech Agreement. With 150 odd members and representing more than 97% of the world trade, WTO performs multiple roles. While supervising and liberalizing international trade, it deals and oversees trade regulations between participating countries, then it provides a platform to negotiate and formalise trade agreements, even while solving any disputes that may arise during the

Many of the characters in Of Mice and Men have dreams Essay Example for Free

Many of the characters in Of Mice and Men have dreams Essay Many of the characters in Of Mice and Men have dreams. What are their dreams and how near are any of them to achieving what they want? Of Mice and Men, written by John Steinbeck is a classic novel set in a ranch town in Salinas Valley, California. The novel may have been set here as a result of most of Steinbecks childhood being spent on his fathers farmland. His descriptions of the setting will have been aided by his first hand experience of the ranches of the area. The novel itself documents the lives of Lennie Small and George Milton. With Lennie being mentally challenged he has the psychological capabilities of a five year old. This means he has to be cared for by George because he acts childish and irresponsibly. For this reason, he often causes commotion within the ranch he is working. On many occasions disruption has occurred and occurs, George and Lennie are forced to leave their current ranch and start again at a new one. As they are always moving around, they never have a secure job and are always staying in temporary accommodation. With each time they move to a different ranch they dream more and more of having their own piece of land where they can be their own bosses and live off the crops they grow. This is shown by this quote, and we can live off the fatta the lan' said by George. This is only one of the many dreams that feature in Of Mice and Men, however not one of the dreams featured in this novel are achieved. This reflected the harsh reality of the Great Depression and the racial prejudice in society at the time. Steinbeck set Of Mice and Men during the Great Depression, in the late 1920s and the 1930s. Many migrants came to California, from other parts of the world looking for work as America was seen as the Land of Opportunity. This glimpse of hope inspired many Europeans to emigrate as Europe, at the time, was overcrowded and disease ridden. America was believed to provide cheap land and no rigid class structure existed. These characteristics gave Europeans the chance of a completely different way of life to what they were used to. In 1929, America entered a prolonged period of economic deprivation due to the collapse of the New York stock exchange, The Wall Street Crash. Following The Wall Street Crash, many Americans who had invested great deals of money into stocks and shares lost almost all of their investments. In some cases, people would have lost their houses and life savings. During The Great Depression, failed businesses and long-term unemployment were of the norm. The hopes of those immigrants, who came to America looking for a new life, were dashed by this tragic event. America was certainly not the Land of Opportunity. George and Lennie travelled from ranch to ranch together. This was unusual as most ranch workers would only usually work at one ranch for no longer than a month or two. They would literally not have the time for friendship. This was one of the reasons that the average workers dream was for some sort of companionship. The fact that George and Lennie had travelled together so long is significant as they lived the dream of so many other workers. It would give them the chance of having an alternative dream, one of owning their own land on which they could live off. When travelling from ranch to ranch workers could not carry many possessions and so had nothing to show for their years of working. They would work and work but not really achieve much. They would spend the money they earned and then earn some more and repeat. This is illustrated in the quote, ..work up a stake and blow the stake. A dream would be important as it would give a worker something to work towards instead of working with no real direction in their life. Many of the characters in the novel have dreams. The dream is a form of escape from reality of life. As previously stated, George and Lennies dream is to have a piece of land that they can call their own, tend it, grow crops and raise animals. However, Lennie specifically dreams of caring for rabbits. This shows his immaturity. He says, An have rabbits! George is always repeating this dream to Lennie. When he does depict the dream to Lennie, he uses exaggerative language and gets involved in the dream almost as much as Lennie. Both George and Lennie become excited when the dream is recalled. They swear, Well just say the hell with going to work , animating their eagerness to fulfil their dream. George and Lennies dream eventually fails. This is for a number of reasons. It is mainly because Lennie is such a burden to George. Because of Lennies mental incapability, he has no idea that he is making Georges life miserable. George says, Course Lennies a God damn nuisance most of the time, but you get used to goin around with a guy an you cant get rid of him George is being held back by Lennie as they are constantly forced to change jobs, because of situations the Lennie gets them in to and therefore they cant stay in work long enough to build up any sort of savings. The result of this is that they can not save up the money to achieve the dream. Lennie has limited social skills and so does not know how to interact with people. Instead, he finds comfort in touching things and is too tactile. This causes trouble as Lennie often touches womens clothes and is misunderstood and seen to be abusive. For this reason, George has to keep a constant eye on Lennie. When Candy makes the proposal of entering their dream in exchange for three hundred dollars, George suddenly sees some possibility of the dream succeeding. Before, he had merely used the dream as a pacifier for Lennie and had lulled himself into believing that it may happen so that he could continue bringing hope to Lennie. I think that sub-consciously he always knew that the dream would never be a reality. With Candys financial input, the dream could realistically be achieved within the month. However, an abrupt end to their hopes arrives. Lennie, in his childlike way, cannot conceive of the line where stroking stops and hurting begins in terms of petting, and he ends up accidently killing two animals by petting them violently. Most horrifically, at the climax of the story, he kills Curlys wife in the same way. The fact that he killed her was the final blow to the dream. I think I knowed from the very first. I think I knowed wed never do her, George says as he realizes the dream is inevitable. Lennie was inevitably going to be hunted down and shot on site. George, who is forced to join the manhunt for Lennie, decides that the kindest way out for both him and Lennie is to kill him when he finds him. He does this by luring Lennie into a false state of trust by reciting their dream to him one last time. This sends Lennie off into death with his dream in his head. You can argue in some way Lennie has achieved his dream. Curlys wife has a dream common to the period and today. She believes that she has the talent to become a Hollywood actress. She was convinced of this as when she was younger; she acquainted herself with a Hollywood director who deemed her suitable to be an actress in the movies. This is shown in a quote taken from a passage spoken by Curlys wife, An I coulda sat in them big hotels, an had pitchers took of me..An all them nice clothes they wear. Because this guy said I was a natural. This guy told her she would receive a letter from him explaining where to meet to develop her acting career. Her explanation of why she didnt become an actress is idealistic at best. She believed that her mother stole that letter. However, this is an optimistic justification. It just so happens that shortly after Curleys wife was given the hope of becoming an actress, she met Curley. When she realised that her dream of becoming an actress was truly over, she decided to marry Curley. She may have done this as, at the time, it was very difficult for a woman to get a job and live on her own. The main profession of women then was housewife. Most women would marry a modest worker but marrying a rich man who owned a ranch was a bonus. Life would be easy for Curleys wife as she would not have to lift a finger. As there was such discrimination towards women, Curleys wife found herself being ignored by the men on the ranch. She was not paid much attention by Curley and was seen by him as more of a trophy than a wife. These are the main reasons that Curleys wife is not happy. She openly expresses that she does not even love Curley. I dont like Curley. She regrets that she married him in the first place. She was not able to speak to anyone during the day as all of the men were out on the fields working. This causes her to be extremely lonely. At any chance she can she will speak to someone. When she speaks to Lennie in the barn, she says, Why cant I talk to you? I never get to talk to nobody. I get awful lonely. This shows that she craves friendship. She is often prying on the men just looking for someone to talk to. She justifies this by saying to Slim Hi, good lookin. Im tryin to find Curley, Slim. The fact that she does not even have a name and is instead referred to as Curleys wife shows her status on the ranch. It shows that she is so insignificant that she is not even deemed important enough to warrant a real name. She is looked down on and shown no respect by most of the men on the ranch. She also has the dream to be treated as equal to the men on the ranch. This is similar to Crooks dream. He just wants to be accepted by everyone else on the ranch. However, both Crooks and Curleys wife have similar dreams which would lead you to think that they would sympathise with each other. The reality is quite opposite. Curleys wife approaches Crooks in an aggressive manor and speaks to him in a demoralising way. She says, Well you keep your place, then Nigger. I could get you strung up on a tree so easy it aint even funny! She perhaps speaks to Crooks with no respect as he is the only person on the ranch over whom she has a higher status. Crooks and Candy try to enter George and Lennies dream. They both do this for their own reasons. Candy is worried about his future on the ranch. He believes that is nearing the point of becoming useless to the ranch owner. He needs some security so that when he does become of no use, he can settle down somewhere. Crooks feels socially isolated and needs to go somewhere that he will be treated as an equal. George, Lennie and Candy do not discriminate against Crooks as much as most. This is the reason that he would feel comfortable living in a house with them. Candy, when he enters the dream, provides financial power. He has three hundred dollars that he is willing to invest in the dream. When he first tries to join the dream, George responds in a negative and coy way. He says You know a place like that? [Candy] Spose I do? Whats that to you? [George]. However, when George considers Candys proposition, he starts to think that the dream may actually become a reality. Candy is afraid that if he does not get somewhere that he can retire to, he may have no one to care for him. Eventually he will be seen of no use and disposed of, much like his dog. Crooks joins the dream as he feels he needs a shelter from society, somewhere that he is accepted for the person that he is and not judged by his skin colour or his disability. Crooks has no status and is treated with no respect on the ranch. He is frustrated with all of the racism directed towards him. He says, If I say something, why, its just a nigger saying it Crooks had a taste of equality when he was a child. He was accepted by white children and has perhaps not accepted the fact that he is now a social outcast. He says, The white kids come to play at our place, an sometimes I went to play with them, and some of them was pretty nice He remembers what it was like to be an equal and wants to experience that feeling again. This is one of the reasons the Crooks joins the dream. Candy will soon be too old and frail to keep his job at the ranch. The fact that he only has one hand means that his job opportunities are very limited. He, much like Crooks, has no one in his life. He just watches workers come and go from the ranch. He would have somewhere to belong if he joined the dream. This is a very important psychologically as having a place to call home can give Candy a reason to carry on living. All of these characters have dreams and their dreams are important to them. They all give their character some sort of goal to aim for and a light at the end of the tunnel. I believe Steinbeck is trying to make a point by including all of these dreams. I think he is trying to say that without dreams, we are all lost in our lives. We all need some sort of dream to keep us motivated. I think the novel was written to show the stranglehold that the Great Depression had on America in the 1930s. It also shows how hard the life of an itinerant worker was. Of Mice and Men was very a descriptive and informative book. It made me realise that dreams, however small or big, are vital in life.

Ethics & Philosophy Essay Example for Free

Ethics Philosophy Essay Free markets can be said to be the markets which have no government interference or regulation. The only regulations present are the ones which involve protecting property rights and maintaining the legal system. Free markets are markets in which the product prices are solely set through market forces, as opposed to interference by external forces. There is also free competition in free markets, and the law of supply and demand is used to fix prices of goods and services in such markets. There are various philosophers who support free markets while others are opposed to such markets. The paper will analyze the contributions of Adam smith, Karl Marx and Milton Friedman on the issue and will give a brief conclusion on the issues discussed. Karl Marx. Karl Marx was a German philosophers who is considered to be amongst the most controversial philosophers in history. He was against capitalism and free markets, which he viewed to be a means with which property owners or the rich use to maintain control over the peasants or poor. Karl Marx viewed the capitalist system as a system meant to make the rich richer and the poor poorer. He explained that initially, capitalism was meant to be a means with which people exchanged commodities which they did not have. However, after money was created, it evolved and became a means with which people could make profits as opposed to satisfying the demand for products. Over time, capitalism undermined the human development and well being, and products created could now dictate how interactions between human beings would be. Soon, the relations between society became material as everything was treated in terms of its monetary worth, as opposed to creative and artistic qualities possessed. Capitalism led to the alienation of workers since they were separated from owning the means which was used for production, and they became slaves to the people who owned those means. This led to the emergence of two economic groups; the property owners and the workers, and the latter were oppressed by the former. This is the reason which made him predict the collapse of capitalism and its replacement with socialism. Socialism is a system in which the government or authority controls production so that it may be mutually beneficial to all members of the society or state. Karl Marx was opposed to free markets since they tended to favor the rich and oppress the poor. Free markets are a feature of the capitalist system, which made Karl Marx oppose them. Weaknesses of this argument. Karl Marx is opposed to free markets due to the weaknesses which he views in capitalism. Karl Marx views capitalism to be a system where the rich oppress the poor. He therefore opposes all features of capitalist systems which he views to be a means which promote the exploitation of the poor . However, Karl Marx does not consider the model which combines both capitalism and socialism in order to take advantage of the positive attributes of the two models. Since socialism has its weaknesses, combining both models may be more beneficial to the economy. In this respect, moderate government interference in trade by the government is an option which Karl Marx should have pursued. Adam Smith. He is considered to be the father of the modern economics and he contributed a lot toward the modern capitalist system. Adam Smith was of the opinion that production was the key to economic growth and that this could only be achieved through economic liberalization. Adam Smith therefore supported unregulated markets since he saw them as a means of stimulating economic growth. He explained that free markets would enable individuals to develop a business without having government intervention, and that the people who consume the products developed would do so at prices which have been determined by demand and supply forces . Adam Smith added that free markets enabled the most competitive producers and consumers to survive, which was beneficial to the economy. He viewed free markets are independent problem solvers which did not require government interference, since market forces eventually address any surpluses or shortages which are inherent in the market. Adam Smith uses the invisible hand theory to explain the way in which different parts of the economy are integrated. Smith explains that each individual is guided by an invisible hand in making their decisions which benefit the economy, without their knowledge. He explains that individuals carry out actions which are meant to benefit themselves, but they end up benefiting the society at large, which is not the initial aim of the individual. Smith gives an illustration of the creation of a wool coat. He says that the coat is developed after a series of processes which are undertaken by different people. The shepherd who owns the sheep, the spinner who develops the coats, and the shipper who transports them to the market all play a role in the creation of the finished product. He explains that this subconscious process by the different parties involved achieves higher levels of efficiencies than would be achieved had the process been planned by the players involved. It means that markets which are regulated by the government have lower efficiency levels compared to markets which are not regulated . This is the major reason why Adam Smith supports the free markets as opposed to regulated markets. Weaknesses of this argument. Adam smith is of the opinion that free markets enabled the most competitive producers and consumers to survive, which is beneficial to the economy. He gives many attributes of free markets, most of which are true. However, he does not discuss the weaknesses of free markets. Free markets suffer from certain weaknesses such as inhibiting the growth of small firms. Free markets may also experience monopolistic and oligopolistic tendencies which adversely affect the economy. The economy may also suffer certain effects attributed to unfair practices in trade. Other effects like inflation, market downturns and others require regulation by a central authority. Adam Smith does not discuss these situations, which makes his argument inconclusive. Milton Friedman. Friedman made major contributions to the economic crisis during the early 20th century. He viewed the 1920s as a period of sustainable and vital growth. Friedman believed that economic growth and freedom had a direct relationship. He used several principles and arguments to further his support from free markets. The political principle was used by Friedman to define the features of free markets. He explained that in free markets, individuals cannot coerce each other and that there is voluntary cooperation between the parties involved . He further explained that parties which are involved in transactions under such circumstances benefit in one way or another, otherwise they would not participate in these transactions. In free market transactions, there are no social responsibilities and values; there are only shared responsibilities and values. However, Friedman was also of the opinion that the government should intervene in the economy if there is threat to it. One of the instances when Friedman supported government interference was during the Great depression which occurred in 1929. The Great Depression changed the view that the United States economy was robust and that it should be totally free from government control, after the US Stock Exchange collapsed due to various factors. Friedman supports the market regulation and explains that if the Federal Government had intervened and applied the right policies, this depression would have been avoided. He explains that the Federal Government should have suspended payment for the withdrawals being requested by people. The policy which was used at the time, which involved printing more money to supplement the increased demand, is blamed for the Great Depression. This reveals a more soft approach to the initial stand that government intervention should not be allowed, and that the markets should be allowed to operate as free markets. However, it does not completely change the stance which had been taken by Friedman regarding free markets. Government interference is allowed only under special circumstances where lack of intervention would lead to severe effects to the economy. This was the case during the Great depression and is also currently the case in the event of the global financial crisis being experienced. Weaknesses of this argument. Friedman is categorical that there should be free markets if economies are to grow. He argues that the absence of social values and responsibilities and the presence of shared values are factors which facilitate economic growth. However, he appears to take a soft stand when discussing the Great Depression where he advocates for government interference, but using the right policies. This is a deviation from his stand that the government should not interfere with the business environment. It also reveals that free trade has weaknesses which he does not effectively address. Personal view. In my opinion, free markets do not lead to serious political, social, or environmental problems as explained by some philosophers. This is because free markets are the most effective and natural means in which prices should be set to ensure effectiveness. On the contrary, a wrong approach of interference by the government may lead to serious political, social, or environmental problems as was seen in the Great Depression. The current financial crisis which began in the United States can also be said to have been accelerated by the government failure to limit the borrowings by investors and excess lending by financial institutions using predatory lending practices. This is a similar problem which led to the great depressions, and the government interference is seen to have led to adverse effects rather than positive effects on the economy. However, in extreme cases of economic problems, the government should intervene. This should only be done to save the economy in cases where the market forces are clearly unable to rectify the situation. For instance, the current financial crisis facing the world requires the governments intervention. This does not mean that the government supports the regulation of markets since in the absence of economic crises, the market forces would usually be used to set the product prices. My major reasons for supporting free markets is that regulated markets usually discourage investments, especially if the regulations are too strict. Investors prefer investing in countries where there is free trade since they can predict their future earnings or returns on investment, due to the absence of external factors in the business environment. Regulated markets may also adversely affect the economy especially if the policies which are applied are retrogressive. Summary and conclusion. It is evident that the three philosophers made major contributions to the modern world. Their theories are still in use several years after some of them passed away. However, it is important to note that their arguments relating to free trade are inconclusive since some of the facts which they used to support their arguments have changed. It is also important to note that none of them has a wrong view, it is only that they looked at free trade from different perspectives. The contributions which each of them has made to society should be appreciated since they all talked about various issues affecting the society, and not just free trade. It is important that other scholars improve on the theories which were advanced by Adam smith, Karl Marx and Milton Friedman. This will reflect the market environment as it is today, and the arguments developed can be used to improve the policies in the current business environment. Works cited. Amadae Samuel. Rationalizing capitalist democracy: the Cold War origins of rational choice liberalism.Chicago: University of Chicago Press, 2003, p255-261. Gagnier Regenia. The insatiability of human wants: economics and aesthetics in market society. Chicago: University of Chicago Press, 2000, p25-35. Machaj Mateusz. Friedman for government intervention: the case of the great depression. Mises Daily. Retrieved on March 18, 2009 from http://74. 125. 95. 132/search? q=cache:s8QYmlyzr-4J:mises. org/story/2442+Milton+Friedman+and+support+of+free+marketscd=8hl=enct =clnkgl=ke. Sunderlin, William D. Ideology, social theory, and the environment. New York: Rowman Littlefield, 2002, p23-33.