Complex Financial Planning Research for Desklib

Conduct Complex Financial Planning Research
Assessment Task
FNSFPL502 and FNSFPL508
Your details:
Name: PREET GILL
Address: XX STREET XXXXX - NSW XXXX
Phone: [phone]
Company name XXX PTY LTD
Email: [e-mail]
Your Assessment Task
Keep a copy of your assessment task for a period of 12 months.
Submit your assessment to our Education Team [e-mail]
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 Evaluate client’s current situation & identify issues FNSFPL502.1 & 508.1 77 54
2 Identify research requirements and parameters FNSFPL502.2 & 508.2 29 20
3 Extract and analyse information FNSFPL502.3 & 508.3 170 119
4 Summarise and present results of research FNSFPL502.4 & 508.4 36 25
Total 312 218
Assessor’s Initials: ____________________
Assessment Date: ____________________
2015Copyright Mentor Education Group Pty Ltd Page 1 of 47
tmpm2l5wxys3086096_339516890_28472341065684236SOAPart2-Comp.docx

Introduction
Objective The objective of this first assessment is to develop a Research Report for
the practical client situation described in the case study assigned to you.
Scope To achieve this objective, you will need to:
 Evaluate client’s current situation and identify issues,
 Identify research requirements and parameters,
 Extract and analyse information, and
 Summarise and present results of research.
The assessment tasks in this assessment will allow you to demonstrate
your knowledge and skills in these elements
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
[e-mail]
Don’t forget to keep a copy and retain it for 12 months
Need help? If you have any questions, please email the Mentor Support Team at
[e-mail]
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. FNSFPL508A.4.4
This assessment will be conducted together with the presentation
requirements in relation to preparing a financial plan, FNSFPL503A
implementation FNSFPL504A and ongoing service FNSFPL505A
Units of
competency
Upon successful completion of these assessments, you will be awarded
two units of competency for:
1. FNSFPL502: Conduct financial planning analysis and research,
and
2. FNSFPL508: Conduct complex financial planning research.
Copyright Mentor Education Group Pty Ltd Page 2 of 47
tmpm2l5wxys3086096_339516890_28472341065684236SOAPart2-Comp.docx

Assessment Task 1
1.0 Evaluate
the client's
current
situation and
identify the
issues
FNSFPLN502B.1
FNSFPLN508B.1
The first assessment involves the evaluation of the case study allocated
to you, to assess the client's current situation and identify the issues.
This requires that you:
 undertake an analysis of the integrity of information provided by the
client,
 identify and quantify the client objectives and expectations and test
them for viability, and
 establish the basis for strategy development based on confirmed
objectives.
For this activity, refer to the case study and complete your answers to
these assessment tasks in the space provided in the following pages.
Marks / 77
Copyright Mentor Education Group Pty Ltd Page 3 of 47
tmpm2l5wxys3086096_339516890_28472341065684236SOAPart2-Comp.docx

Assessment Task 1
1.1 (a)
Analysis of
integrity of
client
information
FNSFPLN502B.1.1
FNSFPLN508B.1.1
From the scenario in your case study, list in the table below what
documents you would review to analyse the integrity of the information
provided by the client.
Enter your answers in the space provided below.
Information
provided by client
What documents would you review to confirm accuracy or analyse the
integrity of the information provided?
Marks
Cashflow Management
1. Income
$ 90 K
$ 45 K
i) Wife’s income: For assessing the income of the Wife, Donna it
will be necessary to verify her pay slip, income statement and her
income tax return file. / 1
ii) Husband’s income: For assessing the income of the Husband,
Dennis it will be necessary to verify her pay slip, income
statement and her income tax return file. / 1
2. Tax i) Wife’s annual tax: In order to assess the tax payment made by
Donna annually, it is necessary to check her file of income tax
return. / 1
ii) Husband’s tax: In order to assess the tax payment made by
Donna annually, it is necessary to check his file of income tax
return. / 1
3. Expenses
$ 40 K
$ 10 K
i) Living expenses/mortgage: The living expenses of the clients
can be accessed from their medical bills, grocery bills and any
other bills related to their day-to-day expenses. In addition to that,
their amount in the mortgage can be verified from the receipts of
loan and other related bank documents. / 1
ii) Discretionary expenses (holidays etc): For assessing and
review the accuracy of the discretionary expenses incurred by the
couples can be made from their bills related to holidays like
airplane tickets, hotel bills and bills for miscellaneous expenses. / 1
Subtotal / 6
continued
Copyright Mentor Education Group Pty Ltd Page 4 of 47
tmpm2l5wxys3086096_339516890_28472341065684236SOAPart2-Comp.docx

Assessment Task 1, continued
Information What documents would you review to analyse
the integrity of the information provided?
Marks
Wealth Creation
4. Super
$ 220 K
$ 51 K
i) Wife’s superannuation: In order to verify the superannuation of
Donna it is essential to verify documents like the superannuation
fund trust deed, Credentials of the beneficiary of the trust as well
as that of the trust manager. In addition to that, it is necessary to
verify any relevant documents related to MM Superannuation like
the monthly bills or receipts. / 1
ii) Husband’s superannuation: In order to verify the superannuation
of Dennis it is essential to verify documents like the superannuation
fund trust deed, Credentials of the beneficiary of the trust as well as
that of the trust manager. In addition to that, it is necessary to verify any
relevant documents related to PP Superannuation like the monthly bills
or receipts. / 1
5. Investments
($ 12 K)
i) Cash Investments Held: The cash investment held by the clients
can be assessed from various documents that includes the bank
account details, the documents related to the investment of the
client, the deeds or the certificate of the investment, etc. / 1
6. Debt
Reduction
($ 130 K)
($ 8 K)
i) Mortgage: It is evident from the case study that, the value of the
client’s property is around $ 750,000 and holds a mortgage value
of $ 130,000. In this regard, it is essential to verify the property
paper of Donna and Dennis, the bank loan documents,
documents related to monthly installment payments and any other
bank documents related to the mortgage. / 1
ii) Credit Cards: In order to verify the authenticity of the credit card
balance, it is necessary to check the client’s bank account details,
the credentials of the credit card provider, bills or receipts of the
transactions done by credit card. / 1
Wealth Protection
7. Personal
Insurance
$ 100 K
$ Nil K
i) Wife’s current Life/TPD insurance: It is noted that, Donna has a
term life and TPD insurance cover of $ 100,000 within her
superannuation fund. In order to assess the authenticity of her
balance of personal insurance it is necessary to check her
documents related to the Superannuation fund, her insurance
policy papers as well receipts of monthly payments made by her. / 1
ii) Husband’s current Life/TPD insurance: It is seen that, the
husband has no such insurance plan and thus, no documents
needs to be verified. / 1
8. Estate
Planning
√ yes / no
yes / no √
i) Wife’s estate planning: It is noted in the given case study that,
Donna is entitled to receive an annual payment of 17,000 from her
Aunt’s estate. In this context, it will be required to check the
documents that states her entitlement to receive the amount,
document related to any kind of hidden cost related to the estate,
the tax return file, etc. / 1
ii) Husband’s estate planning: Since, the husband, Dennis is not
entitled to receive any kind of payment from any estate, thus, it
will be necessary to make any Estate planning for Dennis. / 1
Copyright Mentor Education Group Pty Ltd Page 5 of 47
tmpm2l5wxys3086096_339516890_28472341065684236SOAPart2-Comp.docx

/9
continued
Copyright Mentor Education Group Pty Ltd Page 6 of 47
tmpm2l5wxys3086096_339516890_28472341065684236SOAPart2-Comp.docx

Assessment Task 1
1.1 (b)
Analysis of
integrity of
client
information
FNSFPLN502B.1.1
FNSFPLN508B.1.1
Use the http://www.taxcalc.com.au/1 and a current tax rate to calculate
Dennis and Donna’s:
 Investment income
 Superannuation contributions, and
 Surplus income after tax.
Use the Financial Planning Research spreadsheet provided to assist you
in your calculations and then enter your results in the table below. You
should use the copy and paste function to copy the calculations from the
spreadsheet in to the tables below.
As your clients have private health insurance, the Medicare Levy
surcharge does not apply. Also, assume that investments are jointly held
so that 50% of the income is earned by each.
Investment Income
Investment Funds Rate Income
Bank Account $ 9,000 4 % $ 360
Term deposit $ 15000 4 % $ 600
Cash Management Fund $ 12,000 5 % $ 600
Total $ 36,000 $ 1,560
/ 2
Superannuation Contributions (current situation)
Superannuation
Contributions
(current)
Salary SGC (9.5%) Total Super
Contribution
Donna $90,000 $8,550 $8,550
Dennis $45,000 $4,275 $4,275
/ 2
Surplus Income (current situation)
Salary Investment
Income
Taxable
Income
Tax
Payable
Medicare
levy
Total
Tax
Payable
(incl
LITO)
Expenses
(incl
mortgage
payment)
Surplus
income
Donna $90,000 $780 $90,780 $21,220 $1,816 $23,036 $29,550 $38,194
Dennis $45,000 $780 $45,780 $6,426 $916 $7,342 $29,550 $8,888
Total $135,000 $1,560 $136,560 $27,646 $2,731 $30,377 $59,100 $47,083
/ 6
/ 10
continued
1http://calculators.ato.gov.au/scripts/axos/axos.asp?CONTEXT=&KBS=Medicare10.xr4&go=ok
Copyright Mentor Education Group Pty Ltd Page 7 of 47
tmpm2l5wxys3086096_339516890_28472341065684236SOAPart2-Comp.docx

Assessment Task 1
From the scenario in your case study,
a) write down one or more specific financial objectives and expectations
for the generic needs provided,
b) quantify the objective by expressing the amount in today’s dollars
(PV- Present Value), and
c) Describe how you would verify each objective.
Generic Needs (a) Specific client objectives
and time frames (if applicable)
(b)
Amount
(PV)
(c) How would you verify the
amounts in (b) or test for
viability? (No calculations are
required)
Marks
Cashflow Management
1. Income  The client needs to
identify the sources of
income properly and
incorporate the same in
their portfolio
 The clients need to look
for viable options in order
to increase their income.
Donna -
$
90,000
Dennis
- $
45,000
Verification of the income statements
or tax return files
/3
2. Tax
minimization
 It is important to adopt
policies that will
help[ them to reduce the
tax implications
 The clients need to
invest in certain areas
that will help to minimize
the tax
Donna -
$ 5,939
Dennis
- $
2,630
Verification of the tax return files
/ 3
3. Expenses  The clients need to
identify the areas where
they incur most of the
expenses
 They must formulate
certain action plan in
order to minimize their
expenses
Total
expens
e - $
68,200
Verification of the bills and receipts
treating tom the day-to-day
expenses of the clients
/3
Wealth Creation
4. Superannuati
on
 In context to the current
superannuation plan,
they need to identify
ways to increase their
fund in the trust
Donna -
$
220,000
Dennis
- $
51,000
Verification of the of the
Superannuation trust deed and other
related documents
/ 3
5. Investment
Planning
 Notably, the clients need
to invest more in their
superannuation trust in
order to increase their
income.
Donna -
$
16,675
Dennis
- $
8,000
Verification of the of the
Superannuation trust deed
/ 3
Copyright Mentor Education Group Pty Ltd Page 8 of 47
tmpm2l5wxys3086096_339516890_28472341065684236SOAPart2-Comp.docx