MAA727 Financial Planning Development Assignment-Deakin Business School Australia

Instruction: This is an individual assignment.

PERCENTAGE OF FINAL GRADE: Part A 45%; Part B 15%

HURDLE DETAILS: N/A

Task: MAA727 Financial Planning Development Assignment

Description / Requirements: This assignment consists of 2 parts based on the case study detailed below:

PART A – Written presentation requirements.

1. Please monitor CloudDeakin for any instructions/announcements.

2. Assignments that do not comply with the submission requirements will not be assessed.

3. This assignment must be completed individually.

4. The assignment must be completed and submitted through the assignment dropbox in CloudDeakin.

PART B – Oral presentation requirements

1. You are required to provide an oral presentation of the findings of your Statement of Advice prepared in Part A above.

2. The oral presentation of the SOA is limited in time to 20 – 30 minutes. Presentations going on longer than this time will be penalized.

3. The oral presentation should be conducted as if you were presenting the findings to a client.

Submission Instructions

You must keep a backup copy of every assignment you submit until the marked assignment has been returned to you. In the unlikely event that one of your assignments is misplaced, you will need to submit your backup copy.

Any work you submit may be checked by electronic or other means for the purposes of detecting a collision and/or plagiarism.

When you are required to submit an assignment through your CloudDeakin unit site, you will receive an email to your Deakin email address confirming that it has been submitted. You should check that you can see your assignment in the Submissions view of the Assignment dropbox folder after upload, and check for, and keep, the email receipt for the submission.

Introduction

Brad and Janet approach your financial planning practice for some advice. The couple is aged in their 40’s and expects to work until they turn 65 years of age, but would like to be in a position to be able to retire at age 60. The couple owns some investments held outside of superannuation as well as some superannuation accounts.

Personal details: Janet is aged 44 (DOB 01/01/1975). Brad is aged 50 (DOB 03/04/1969). They met at university and have been married for 13 years.

Brad is a self-employed surveyor and earns a net profit before tax and before any superannuation contributions of $190,000. Janet is a social worker in a large national welfare agency and earns a salary of $66,000 plus a 9.5% SG contribution. Brad does not currently salary sacrifice any benefit although he has been thinking about organizing something for some time but has never got around to it.

Janet and Brad have 2 children – May aged 11 (Grade 6) and Hamish aged 7 (Grade 2). Brad and Janet believe that May and Hamish will be financially dependent until they graduate from university. May and Hamish attend a private school at a cost of $20,000 per year per child (this is due to rise with inflation, but should not increase by more than that).

Investments

Liabilities

Risk profile

You speak to the couple about asset allocation and risk and return and ask the couple a number of questions to ascertain their likely risk profile. Whilst the couple are not comfortable with taking on a lot of risk, they are aware of the need to maximise their retirement savings and accept they will need to take on more risk. Brad does have some experience and knowledge of investing and understands the relationship between risk and return. Both believe that minimising tax and keeping pace with inflation are important considerations with their investments. After discussions with the client, they accept that around 70% of their portfolio should be invested in growth investments.

Other information:MAA727 Financial Planning Development Assignment-Deakin Business School Australia

• You have provided the client with a copy of your FSG.

• You are an authorized representative of a practice called FairGo Financial Planners. You are licensed under “Wealth Generation” – AFSL number 111888

• Your remuneration model consists of the following: o preparation of a SOA: flat fee of $5,000 plus GST o implementation fee: $3,000 plus GST o ongoing fee: 0.8% plus GST of funds under management

• Your licensee has an Approved Product List (APL) which includes anything that has a research rating of “Recommendation / 3+ stars” and above. The Colonial First State, Macquarie Wrap, and Vanguard funds and insurance are listed on the APL. The Australian Super fund and insurance currently are not on the APL but your licensee will approve the product if you believe it is in the client’s best interest.