FNSFPL503 Develop Financial Plan | Provide Authorities Action
Your assessment task FNSFPL503 Develop Financial Plan
Keep a copy of your assessment task for a period of 12 months.
assessment to our Education Team via submissions@mentor.edu.au
No handwritten responses will be accepted.
Plagiarism Statement
All assessments must be your own work and not a result of plagiarism or collaboration with other students or workmates.
Assessment
The pass mark is 70% for each element.
If you do not achieve this, you will receive feedback via your email address and be asked to resubmit your assessment for a second marking.
Assignments will not be returned to you.
| Task | Assessments | Elements | Target Mark | Pass Mark | Actual Mark |
| 1 | Establish plan objectives and scope | FNSFPL503.1 | 35 | 25 | |
| 2 | Develop strategic assumptions | FNSFPL503.2 | 21 | 15 | |
| 3 | Develop financial plan strategy | FNSFPL503.3 | 36 | 25 | |
| 4 | Develop financial plan | FNSFPL503.4 | 150 | 105 | |
| Total | 242 | 170 | |||
Assessor’s Initials: ____________________
Assessment Date: ____________________
Introduction Name: ____________________
Objective | The objective of this assessment is to develop and prepare a financial plan that meets the client’s needs as described in the case study assigned to you. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Scope | To achieve this objective, you will need to: · establish plan objectives and scope, · develop strategic assumptions, · develop financial plan strategy, · develop preliminary financial plan, · ensure compliance of financial plan with regulatory and organisational requirements, and · produce completed plan. The assessment tasks in this assessment require you to have successfully completed the Complex Financial Planning Research Spreadsheet [1] in relation to your assigned case study. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assessment process | Start by: 1. Reading the Assessment Task and case study. 2. Type your answers to the assessment tasks into this template document (hand-written answers are not accepted) 3. Submit your completed document by emailing it to submissions@men FNSFPL503 Develop A Financial Plan
Develop a Financial Plan | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Name: | |
| Address: | |
| Phone: | |
| Company name | |
| Email: |
Your assessment task
Keep a copy of your assessment task for a period of 12 months.
Submit your assessment to our Education Team via submissions@mentor.edu.au
No handwritten responses will be accepted.
Plagiarism Statement
All assessments must be your own work and not a result of plagiarism or collaboration with other students or workmates.
Assessment
The pass mark is 70% for each element.
If you do not achieve this, you will receive feedback via your email address and be asked to resubmit your assessment for a second marking.
Assignments will not be returned to you.
| Task | Assessments | Elements | Target Mark | Pass Mark | Actual Mark |
| 1 | Establish plan objectives and scope | FNSFPL503.1 | 35 | 25 | |
| 2 | Develop strategic assumptions | FNSFPL503.2 | 21 | 15 | |
| 3 | Develop financial plan strategy | FNSFPL503.3 | 36 | 25 | |
| 4 | Develop financial plan | FNSFPL503.4 | 150 | 105 | |
| Total | 242 | 170 | |||
Assessor’s Initials: ____________________
Assessment Date: ____________________
Introduction Name: ____________________
Objective | The objective of this assessment is to develop and prepare a financial plan that meets the client’s needs as described in the case study assigned to you. | ||
Scope | To achieve this objective, you will need to: · establish plan objectives and scope, · develop strategic assumptions, · develop financial plan strategy, · develop preliminary financial plan, · ensure compliance of financial plan with regulatory and organisational requirements, and · produce completed plan. The assessment tasks in this assessment require you to have successfully completed the Complex Financial Planning Research Spreadsheet [1] in relation to your assigned case study. | ||
Assessment process | Start by: 1. Reading the Assessment Task and case study. 2. Type your answers to the assessment tasks into this template document (hand-written answers are not accepted) 3. Submit your completed document by emailing it to submissions@mentor.edu.au Don’t forget to keep a copy and retain it for 12 months. | ||
Need help? | If you have any questions or would like to request a digital copy of this assessment task, please email the Mentor Support Team at service@mentor.edu.au | ||
| Related Assessments | When you have completed all written assessment tasks in this program of study (Statement of Advice series), you will then need to undertake one other related assessment: · Skills Assessment (telephone simulation) to assess your communication and interpersonal skills in relation to presenting your research findings to the financial planner. FNSFPL508.4.4 This assessment will be conducted together with the presentation requirements in relation to implementation FNSFPL504 and ongoing service FNSFPL505
Upon successful completion of these assessments, you will be awarded the unit competency Develop and Prepare Financial Plan FNSFPL503 | ||
Assessment Task 1 Name: ____________________
| 1.0 Establish plan objectives and scope
| This first assessment task requires you to establish plan objectives and scope. It requires you to: · review and compare research results to client requirements and expectations, · analyse current client situation to determine opportunities and constraints, · identify and assess desired financial resource and market parameters, and · develop plan objectives for asset growth, income, risk, taxation and any other objectives developed in consultation with the client. For this activity, you should refer to the Financial Planning Research Spreadsheet you prepared in the previous Assessment Task and complete your answers in the space provided in the following page. An example has been provided in the first line. |
35 marks
Assessment Task 1, continued Name: ____________________
| Plan Objectives Matrix | |||||||
| Generic Needs | (a) Client requirements and expectations | (b) Research Results (strategies, products and markets analysed) | (c) Opportunities / Constraints (of current client situation) | (d) Desired market conditions
| (e) Plan objectives
| Mark | |
| Cashflow Management | |||||||
| 1. Income | i. Maximise Surplus Income
| i. Approx $31,000 current surplus income, excluding interest income from cash & fixed interest investments ii. Further $9,100 pa after tax available after mortgage is paid off | i. Further promotions/pay increases ii. Donna could decide to continue working PT or defer retirement | i. Labour market and salaries continue to improve | Surplus income: i. Pay off mortgage ii. Investment for grand children
Retirement Income: iii. $40K pa from pension iv. $25K from Dennis’s PT work | ||
| 2. Tax Minimisation
| / 5 | ||||||
| 3. Expenses | / 5 | ||||||
| Wealth Creation | |||||||
| 4. Superan-nuation | / 5 | ||||||
Continued / 15
Assessment Task 1, continued Name: ____________________
| Plan Objectives Matrix continued | ||||||
| Generic Needs | (a) Client requirements and expectations | (b) Research Results (strategies, products and markets analysed) | (c) Opportunities / Constraints (of current client situation) | (d) Desired market conditions
| (e) Plan objectives
| Mark |
| 5. Investment Planning | / 5 | |||||
| 6. Debt Reduction | / 5 | |||||
| Wealth Protection | ||||||
| 7. Personal Insurance
| / 5 | |||||
| 8. Estate Planning | / 5 | |||||
| Total | / 35 | |||||
Assessment Task 2 Name: ____________________
| Develop strategic assumptions
| The next step involves developing and testing your strategic assumptions, which requires you to: · develop and test client related and economic key assumptions, · identify and test legislative and regulatory requirements, including taxation assumptions, and · seek clarifications from client or other professionals as required and document strategic assumptions for client review. For this activity, you should refer to the Plan Objectives you prepared in the previous Assessment Task. |
21 Marks
Assessment Task 2 Name: ____________________
| 2.1 Develop & test strategic assumptions
| In the second column in the table below, list the key ‘Assumptions’ you have used to develop your plan objectives, considering: · legislative and regulatory assumptions requiring verification, · taxation assumptions requiring verification, · client assumptions requiring clarification from your clients, · other assumptions requiring clarification from other professionals Now list in the third column of the table below titled ‘Verification’, the information sources you will research and the stakeholders you will consult to verify the assumptions made. (Website addresses etc.) |
| Generic Needs | Assumptions | Verification | Marks |
| Cashflow Management | |||
| 1. Income | / 1 | ||
| 2. Tax Minimisation
| / 3 | ||
| 3. Expenses | / 2 | ||
| Wealth Creation | |||
| 4. Superannuation | / 7 | ||
Note: to receive each mark, you must have both the assumption and a related source for verification
Subtotal / 13
Continued
Assessment Task 2 Name: ____________________
| Generic Needs | Assumptions | Verfication | Marks |
| 5. Investment Planning | / 2 | ||
| 6. Debt Reduction | / 2 | ||
| Wealth Protection | |||
| 7. Personal Insurance | / 1 | ||
| 8. Estate Planning | / 3 | ||
Note: to receive each mark, you must have both the assumption and a related source for verification
Subtotal / 8
Total /21
Assessment Task 3 Name: ____________________
| Develop financial plan strategy
| The next step involves developing and testing your strategic assumptions, which requires you to: · develop initial strategic options based on strategic assumptions and client specifications · analyse and model strategic options, with any inappropriate options rejected · develop supporting arguments for each final strategic option and include in a draft overall strategy, and · make any necessary client checks or consultations to verify the plan strategy. Complete your answers in the space provided in the following pages. |
36 Marks
Assessment Task 3 Name: ____________________
| 3.1 Develop plan strategy
| In this activity, you are required to develop the final Plan Strategy that you will use to prepare the Financial Plan. This will involve you developing the supporting arguments for each strategic option, based on the analysis and modelling undertaken in the Paraplanning Research Report To successfully complete this task, you will have needed to undertake all ‘Verification’ of ‘Assumptions’ developed in the previous activity. | ||
| (a) Strategic Option: Debt Free Home | Marks | ||
| Supporting arguments:
| / 6 | ||
| (b) Strategic Option: Save for University fees for Grandchildren | Marks | ||
| Supporting arguments:
| / 2 | ||
| (c) Strategic Option: Maximise growth of super savings | Marks | ||
| Supporting arguments:
| / 4 | ||
/ 12
Continued
Assessment Task 3 Name: ____________________
| (d) Strategic Option: Achieve target superannuation savings and retirement pension
| Marks |
| Supporting arguments: | / 4 |
| (e) Strategic Option: Insurance to protect client’s wealth | Marks |
| Supporting arguments:
| / 8 |
| (f) Strategic Option: Will and Power of Attorney to protect clients in case of death or loss of mental capacity | Marks |
| Supporting arguments:
| / 1 |
/ 13
Continued
Assessment Task 3 Name: ___________________
| 3.2 Rejected strategic options
| As a final review of your Strategic Plan, list below the inappropriate strategic options that you rejected. In answering this question, you should refer back to the strategic options you developed earlier in section 1.3 (a) as a brief for the Financial Planning Research Report Type your answers below in the space provided. An example has been provided in the first line below. | |||||
| Generic Needs | Inappropriate Options | Reason for rejection | Marks | |||
| Cashflow Management | ||||||
| a) Income | 1. Donna and Dennis extends retirement age (e.g. from 7 to 11 years) 2. Donna continues to work PT into retirement. | 1. Not in line with client wishes 2. There will be sufficient super | / 2 | |||
| b) Tax minimisation | / 1 | |||||
| c) Expenses | /1 | |||||
| Wealth Creation | ||||||
| d) Superann-uation | / 2 | |||||
| e) Debt reduction | / 1 | |||||
| f) Investment Planning | / 2 | |||||
| Wealth Protection | ||||||
| g) Personal Insurance | / 1 | |||||
| h) Estate Planning | / 1 | |||||
Note: To receive each mark, you must provide a reason why an option was rejected
Assessment Task 4 Name: ____________________
| 4.0 Develop preliminary financial plan
| In this assessment task, you will need to develop a Financial Plan for assessment. This will require you to: · select specific products and options to meet agreed strategy with cash flow, liquidity and capital preservation or estate planning requirements incorporated as required, · develop recommendations for financial asset allocation structure, including where provision is required for equities, trusts, partnerships, allocated pensions, and superannuation and planned capital expenditure · develop recommendations for changes to income and taxation arrangements, including referral advice to accountants or lawyers as appropriate, · develop recommendations on risk management strategies and products and incorporate in the plan, · incorporate anticipated fees and charges into the plan, with information on internal and external complaint resolution procedures available to the client, and · document the financial plan according to organisation guidelines and procedures. |
| 150 Marks | |
|
|
Assessment Task 4, continued Name: ________
Assessment Task 4, continued Name: ____________________
| Assessment Presentation Guideline | Paper orientation Use portrait unless otherwise specified.
Cover page Cover page to include your details · Name · Postal address · Phone · Company Name · Email address
Font style Type all body text in black Arial font, size 12.
Margins Set your margins at: · Top / bottom / left / right – 2cm · Header / footer – 1cm
Headers and footer Use headers and footers on each page. · The header should be in Arial font and contain your full legal name and the name of the organisation you work for, eg.
· The footer should be in Arial font and contain the name of the assessment task and the page number, eg.
Assessment Task 4 page 5 of 20
Spacing: · Use single spacing within your paragraphs. · Use double spacing between your paragraphs
Layout: This is a document that you would hand to your client so ensure that it is presented in a professional manner and addressed to the clients in the first person. Ensure all instructions to you (as the student) is deleted and there is no ‘red’ text remaining before you submit your document for assessment.
|
Assessment Task 4, continued Name: _______Sub Total / 3
Continued
Assessment Task 4, continued Name: ________________
| Mark Allocation | Mark | |
| Strategic Assumptions
| Strategic Assumptions that were identified and tested include: | / 4 |
| a) Key client assumptions | /1 | |
| b) Key economic assumptions | /1 | |
| c) Legislative and regulatory requirements, including taxation assumptions | /1 | |
| d) Clarifications sought from client or other professionals as required | /1 | |
| Strategies | Strategies: | / 17 |
| a) Wealth Protection – Keeping what you have | /2 | |
| b) Wealth Accumulation – Building funds for retirement via superannuation | /2 | |
| c) Wealth Accumulation – Providing for your grandchildren’s future education | /2 | |
| d) Wealth Accumulation – Minimising the tax payable on your cash investments | /2 | |
| e) Wealth Accumulation – Paying off your mortgage before retirement | /2 | |
| f) Estate Planning | /2 | |
| g) Alternative strategies considered but not recommended and why | /5 | |
| Cashflow Requirements
| Client cash-flow requirements to implement investment strategies are quantified in a table and explained. Include: | /16 |
| a) Income | /1 | |
| b) Taxation | /1 | |
| c) Offsets | /1 | |
| d) Total out-goings | /1 | |
| e) Sufficient surplus income is identified in relation to meeting the recommendations; and | /1 | |
| f) Evaluated for effectiveness using qualitative measures | /5 | |
| g) Evaluated for effectiveness using quantitative analysis techniques (P/V, F/V) | / 5 | |
| h) Disclaimer included re: tax calculations | /1 | |
| Insurance and Investment Product Selection | Financial products and/or services: | / 27 |
| a) Insurance Product Selection – key features, supporting documentation, products to be replaced (if any) | /2 | |
| b) Benefits – including price, level of cover, claims process, tax, inflation protection, management | /5 | |
| c) Lost benefits/consequences/disadvantages | /5 | |
| d) Investment Product Selection – key features (including qualitative and quantitative analysis) supporting documentation, products to be replaced (if any) | /2 | |
| e) Benefits – including capital accumulation, tax, access, flexibility, diversification, inflation protection, capital growth and management | /5 | |
| f) Lost benefits/consequences/disadvantages | /5 | |
| g) Financial asset allocation structure and justification why the recommendation is appropriate | /3 | |
Sub Total / 64
Continued
Assessment Task 4, continued Name: ____________________
| Mark Allocation | Mark | |
| Disclosure
| Disclosure of Commissions and Fees section includes: | /30 |
| h) Total commissions payable – Risk and Investment | /10 | |
| i) Description of initial and trailing commission (risk and investment) | /10 | |
| j) SoA Preparation Fee, Entry/Exit fees (if applicable) | /3 | |
| k) Where the recommendation includes replacement of any product, comparison of the benefits of the new and replacement product includes: a. disclosure of the remuneration to the adviser, b. the cost to the client, such as: i. exit fees or penalties, ii. entry fees and iii. implementation fees | /1 | |
| l) Other benefits and interests | /2 | |
| m) Fund manager payments and sponsorships | /2 | |
| n) Portfolio Review | /2 | |
| Authorities/ Actions | Provide Authorities and Actions: | /15 |
| a) Authority to Proceed | /10 | |
| b) Action to Proceed | /5 | |
| Additional Information | The following information should be included in the completed plan | /8 |
| a) Disclaimer – including time limitation (sunset clause) | /3 | |
| b) Client Declaration | /2 | |
| c) Adviser Declaration | /2 | |
| d) Offer documents and research reports | /1 | |
Sub Total / 53
| Total | / 150 |
The final Completed Financial Plan should be emailed to submissions@mentor.edu.au with this completed Assessment Task.
tor.edu.au
Don’t forget to keep a copy and retain it for 12 months.
Need help?
· Skills Assessment (telephone simulation) to assess your communication and interpersonal skills in relation to presenting your research findings to the financial planner. FNSFPL508.4.4
This assessment will be conducted together with the presentation requirements in relation to implementation FNSFPL504 and ongoing service FNSFPL505
Upon successful completion of these assessments, you will be awarded the unit competency Develop and Prepare Financial Plan FNSFPL503
Assessment Task 1 Name: ____________________
| 1.0 Establish plan objectives and scope
| This first assessment task requires you to establish plan objectives and scope. It requires you to: · review and compare research results to client requirements and expectations, · analyse current client situation to determine opportunities and constraints, · identify and assess desired financial resource and market parameters, and · develop plan objectives for asset growth, income, risk, taxation and any other objectives developed in consultation with the client. For this activity, you should refer to the Financial Planning Research Spreadsheet you prepared in the previous Assessment Task and complete your answers in the space provided in the following page. An example has been provided in the first line. |
35 marks
Assessment Task 1, continued Name: ____________________
| Plan Objectives Matrix | |||||||
| Generic Needs | (a) Client requirements and expectations | (b) Research Results (strategies, products and markets analysed) | (c) Opportunities / Constraints (of current client situation) | (d) Desired market conditions
| (e) Plan objectives
| Mark | |
| Cashflow Management | |||||||
| 1. Income | i. Maximise Surplus Income
| i. Approx $31,000 current surplus income, excluding interest income from cash & fixed interest investments ii. Further $9,100 pa after tax available after mortgage is paid off | i. Further promotions/pay increases ii. Donna could decide to continue working PT or defer retirement | i. Labour market and salaries continue to improve | Surplus income: i. Pay off mortgage ii. Investment for grand children
Retirement Income: iii. $40K pa from pension iv. $25K from Dennis’s PT work | ||
| 2. Tax Minimisation
| / 5 | ||||||
| 3. Expenses | / 5 | ||||||
| Wealth Creation | |||||||
| 4. Superan-nuation | / 5 | ||||||
Continued / 15
Assessment Task 1, continued Name: ____________________
| Plan Objectives Matrix continued | ||||||
| Generic Needs | (a) Client requirements and expectations | (b) Research Results (strategies, products and markets analysed) | (c) Opportunities / Constraints (of current client situation) | (d) Desired market conditions
| (e) Plan objectives
| Mark |
| 5. Investment Planning | / 5 | |||||
| 6. Debt Reduction | / 5 | |||||
| Wealth Protection | ||||||
| 7. Personal Insurance
| / 5 | |||||
| 8. Estate Planning | / 5 | |||||
| Total | / 35 | |||||
Assessment Task 2 Name: ____________________
| Develop strategic assumptions
| The next step involves developing and testing your strategic assumptions, which requires you to: · develop and test client related and economic key assumptions, · identify and test legislative and regulatory requirements, including taxation assumptions, and · seek clarifications from client or other professionals as required and document strategic assumptions for client review. For this activity, you should refer to the Plan Objectives you prepared in the previous Assessment Task. |
21 Marks
Assessment Task 2 Name: ____________________
| 2.1 Develop & test strategic assumptions
| In the second column in the table below, list the key ‘Assumptions’ you have used to develop your plan objectives, considering: · legislative and regulatory assumptions requiring verification, · taxation assumptions requiring verification, · client assumptions requiring clarification from your clients, · other assumptions requiring clarification from other professionals Now list in the third column of the table below titled ‘Verification’, the information sources you will research and the stakeholders you will consult to verify the assumptions made. (Website addresses etc.) |
| Strategic Option: Insurance to protect client’s wealth | Marks |
| Supporting arguments:
| / 8 |
| Generic Needs | Assumptions | Verification | Marks |
| Cashflow Management | |||
| 1. Income | / 1 | ||
| 2. Tax Minimisation
| / 3 | ||
| 3. Expenses | / 2 | ||
| Wealth Creation | |||
| 4. Superannuation | / 7 | ||
Note: to receive each mark, you must have both the assumption and a related source for verification
Subtotal / 13
Continued
Assessment Task 2 Name: ____________________
| Generic Needs | Assumptions | Verfication | Marks |
| 5. Investment Planning | / 2 | ||
| 6. Debt Reduction | / 2 | ||
| Wealth Protection | |||
| 7. Personal Insurance | / 1 | ||
| 8. Estate Planning | / 3 | ||
Note: to receive each mark, you must have both the assumption and a related source for verification
Subtotal / 8
Total /21
Assessment Task 3 Name: ____________________
| Develop financial plan strategy
| The next step involves developing and testing your strategic assumptions, which requires you to: · develop initial strategic options based on strategic assumptions and client specifications · analyse and model strategic options, with any inappropriate options rejected · develop supporting arguments for each final strategic option and include in a draft overall strategy, and · make any necessary client checks or consultations to verify the plan strategy. Complete your answers in the space provided in the following pages. |
36 Marks
Assessment Task 3 Name: ____________________
| 3.1 Develop plan strategy
| In this activity, you are required to develop the final Plan Strategy that you will use to prepare the Financial Plan. This will involve you developing the supporting arguments for each strategic option, based on the analysis and modelling undertaken in the Paraplanning Research Report To successfully complete this task, you will have needed to undertake all ‘Verification’ of ‘Assumptions’ developed in the previous activity. | ||
| (a) Strategic Option: Debt Free Home | Marks | ||
| Supporting arguments:
| / 6 | ||
| (b) Strategic Option: Save for University fees for Grandchildren | Marks | ||
| Supporting arguments:
| / 2 | ||
| (c) Strategic Option: Maximise growth of super savings | Marks | ||
| Supporting arguments:
| / 4 | ||
Assessment Task 3 Name: ____________________
| (d) Strategic Option: Achieve target superannuation savings and retirement pension
| Marks |
| Supporting arguments: | / 4 |
FNSFPL503 Develop Financial Plan | Provide Authorities Action
| (f) Strategic Option: Will and Power of Attorney to protect clients in case of death or loss of mental capacity | Marks |
| Supporting arguments:
| / 1 |
/ 13
Continued
Assessment Task 3 Name: ___________________
| 3.2 Rejected strategic options
| As a final review of your Strategic Plan, list below the inappropriate strategic options that you rejected. In answering this question, you should refer back to the strategic options you developed earlier in section 1.3 (a) as a brief for the Financial Planning Research Report Type your answers below in the space provided. An example has been provided in the first line below. | |||||
| Generic Needs | Inappropriate Options | Reason for rejection | Marks | |||
| Cashflow Management | ||||||
| a) Income | 1. Donna and Dennis extends retirement age (e.g. from 7 to 11 years) 2. Donna continues to work PT into retirement. | 1. Not in line with client wishes 2. There will be sufficient super | / 2 | |||
| b) Tax minimisation | / 1 | |||||
| c) Expenses | /1 | |||||
| Wealth Creation | ||||||
| d) Superann-uation | / 2 | |||||
| e) Debt reduction | / 1 | |||||
| f) Investment Planning | / 2 | |||||
| Wealth Protection | ||||||
| g) Personal Insurance | / 1 | |||||
| h) Estate Planning | / 1 | |||||
Note: To receive each mark, you must provide a reason why an option was rejected
Assessment Task 4 Name: ____________________
| 4.0 Develop preliminary financial plan
| In this assessment task, you will need to develop a Financial Plan for assessment. This will require you to: · select specific products and options to meet agreed strategy with cash flow, liquidity and capital preservation or estate planning requirements incorporated as required, · develop recommendations for financial asset allocation structure, including where provision is required for equities, trusts, partnerships, allocated pensions, and superannuation and planned capital expenditure · develop recommendations for changes to income and taxation arrangements, including referral advice to accountants or lawyers as appropriate, · develop recommendations on risk management strategies and products and incorporate in the plan, · incorporate anticipated fees and charges into the plan, with information on internal and external complaint resolution procedures available to the client, and · document the financial plan according to organisation guidelines and procedures. |
| 150 Marks | |
|
|
Assessment Task 4, continued Name: ________
| Assessment Presentation Guideline | Paper orientation Use portrait unless otherwise specified.
Cover page Cover page to include your details · Name · Postal address · Phone · Company Name · Email address
Font style Type all body text in black Arial font, size 12.
Margins Set your margins at: · Top / bottom / left / right – 2cm · Header / footer – 1cm
Headers and footer Use headers and footers on each page. · The header should be in Arial font and contain your full legal name and the name of the organisation you work for, eg.
· The footer should be in Arial font and contain the name of the assessment task and the page number, eg.
Assessment Task 4 page 5 of 20
Spacing: · Use single spacing within your paragraphs. · Use double spacing between your paragraphs
Layout: This is a document that you would hand to your client so ensure that it is presented in a professional manner and addressed to the clients in the first person. Ensure all instructions to you (as the student) is deleted and there is no ‘red’ text remaining before you submit your document for assessment.
|
Assessment Task 4, continued Name: _______Sub Total / 3
Continued
Assessment Task 4, continued Name: ________________
| Mark Allocation | Mark | |
| Strategic Assumptions
| Strategic Assumptions that were identified and tested include: | / 4 |
| a) Key client assumptions | /1 | |
| b) Key economic assumptions | /1 | |
| c) Legislative and regulatory requirements, including taxation assumptions | /1 | |
| d) Clarifications sought from client or other professionals as required | /1 | |
| Strategies | Strategies: | / 17 |
| a) Wealth Protection – Keeping what you have | /2 | |
| b) Wealth Accumulation – Building funds for retirement via superannuation | /2 | |
| c) Wealth Accumulation – Providing for your grandchildren’s future education | /2 | |
| d) Wealth Accumulation – Minimising the tax payable on your cash investments | /2 | |
| e) Wealth Accumulation – Paying off your mortgage before retirement | /2 | |
| f) Estate Planning | /2 | |
| g) Alternative strategies considered but not recommended and why | /5 | |
| Cashflow Requirements
| Client cash-flow requirements to implement investment strategies are quantified in a table and explained. Include: | /16 |
| a) Income | /1 | |
| b) Taxation | /1 | |
| c) Offsets | /1 | |
| d) Total out-goings | /1 | |
| e) Sufficient surplus income is identified in relation to meeting the recommendations; and | /1 | |
| f) Evaluated for effectiveness using qualitative measures | /5 | |
| g) Evaluated for effectiveness using quantitative analysis techniques (P/V, F/V) | / 5 | |
| h) Disclaimer included re: tax calculations | /1 | |
| Insurance and Investment Product Selection | Financial products and/or services: | / 27 |
| a) Insurance Product Selection – key features, supporting documentation, products to be replaced (if any) | /2 | |
| b) Benefits – including price, level of cover, claims process, tax, inflation protection, management | /5 | |
| c) Lost benefits/consequences/disadvantages | /5 | |
| d) Investment Product Selection – key features (including qualitative and quantitative analysis) supporting documentation, products to be replaced (if any) | /2 | |
| e) Benefits – including capital accumulation, tax, access, flexibility, diversification, inflation protection, capital growth and management | /5 | |
| f) Lost benefits/consequences/disadvantages | /5 | |
| g) Financial asset allocation structure and justification why the recommendation is appropriate | /3 | |
Sub Total / 64
Continued
Assessment Task 4, continued Name: ____________________
| Mark Allocation | Mark | |
| Disclosure
| Disclosure of Commissions and Fees section includes: | /30 |
| h) Total commissions payable – Risk and Investment | /10 | |
| i) Description of initial and trailing commission (risk and investment) | /10 | |
| j) SoA Preparation Fee, Entry/Exit fees (if applicable) | /3 | |
| k) Where the recommendation includes replacement of any product, comparison of the benefits of the new and replacement product includes: a. disclosure of the remuneration to the adviser, b. the cost to the client, such as: i. exit fees or penalties, ii. entry fees and iii. implementation fees | /1 | |
| l) Other benefits and interests | /2 | |
| m) Fund manager payments and sponsorships | /2 | |
| n) Portfolio Review | /2 | |
| Authorities/ Actions | Provide Authorities and Actions: | /15 |
| a) Authority to Proceed | /10 | |
| b) Action to Proceed | /5 | |
| Additional Information | The following information should be included in the completed plan | /8 |
| a) Disclaimer – including time limitation (sunset clause) | /3 | |
| b) Client Declaration | /2 | |
| c) Adviser Declaration | /2 | |
| d) Offer documents and research reports | /1 | |
Sub Total / 53
| Total | / 150 |
The final Completed Financial Plan should be emailed to submissions@mentor.edu.au with this completed Assessment Task.
