Conduct Complex Financial Planning Research

Conduct Complex Financial Planning Research
Assessment Task
FNSFPL502 and FNSFPL508
Your details:
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 [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 35 25
Total 311 218
Assessor’s Initials: ____________________
Assessment Date: ____________________
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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.
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Assessment Task 1
1.0 Evaluate
the client's
current
situation and
identify the
issues
FNSFPLN502.1
FNSFPL508.1
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
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Assessment Task 1
1.1 (a)
Analysis of
integrity of
client
information
FNSFPLN502.1.1
FNSFPL508.1.1
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
$ 95 K
$ 45 K
i) Wife’s income: The Salary payment which is received in the
bank statement / 1
ii) Husband’s income: The Salary payment which is received in
the bank statement / 1
2. Tax i) Wife’s annual tax: $23945 calculated on total income / 1
ii) Husband’s tax: $6114 calculated on total income including
investment income
/ 1
3. Expenses
$ 75.008 K
$ 10 K
i) Living expenses/mortgage: The bills paid by the client
inclusive of mortgage bill / 1
ii) Discretionary expenses (holidays etc): the holidays which is
undertaken by the client / 1
Subtotal / 6
continued
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Assessment Task 1, continued
Information What documents would you review to analyse
the integrity of the information provided?
Marks
Wealth Creation
4. Super
$ 290 K
$ 138 K
i) Wife’s superannuation: The plan copy of the superannuation
fund MM superannuation / 1
ii) Husband’s superannuation: The plan copy of the
superannuation fund PP superannuation
/ 1
5. Investments
($ 36K)
i) Cash Investments Held: The details of the investment made
in the bank, term deposit papers and Cash management
slips.
/ 1
6. Debt
Reduction
($ 110 K)
($ nil K)
i) Mortgage: the mortgage details about the house papers / 1
ii) Credit Cards: nil
/ 1
Wealth Protection
7. Personal
Insurance
$ 300 K
$ 150 K
i) Wife’s current Life/TPD insurance : The insurance plan
details from the MM fund / 1
ii) Husband’s current Life/TPD insurance : The insurance plan
details from the PP fund
/ 1
8. Estate
Planning
no
no
i) Wife’s estate planning: Do not have a plan / 1
ii) Husband’s estate planning: Do not have a plan
/ 1
/9
continued
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Assessment Task 1
1.1 (b)
Analysis of
integrity of
client
information
FNSFPLN502.1.1
FNSFPL508.1.1
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 Amount Rate Income
Bank Account $9000 4% $360
Term deposit $15000 4% $600
Cash Management Account $12000 5% $600
Total $36000 $1560
/ 2
Superannuation Contributions (current situation)
Base
Salary
SG Rate Amount
Donna $95000 9.5% $9025
Dennis $45000 9.5% 4275
Total $140000 $13300
/ 2
Surplus Income (current situation)
Base
Salary
Investment
Income
Taxable
Income
Tax on
Income
Medicare
levy
Tax Payable
(incl LITO)
Expenses
(incl
mortgage
payment)
Surplus
income
Donna $95000 $780 $95780 $22936 $1916 $23945 $28025 $43810
Dennis $45000 $780 $45780 $6426 $916 $6114 $28025 $11641
Total $140000 $1560 $141560 $29362 $2832 $30059 $56050 $55451
/ 6
/ 10
continued
1 http://calculators.ato.gov.au/scripts/axos/axos.asp?CONTEXT=&KBS=Medicare10.xr4&go=ok
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Assessment Task 1
1.2 Identify
client
objectives
and
expectations
FNSFPLN502.1.2
FNSFPL508.1.2
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 Post retirement income of the
client has to be met
$40000 The amount required will be checked
by looking at the current living
standard of the client. /3
2. Tax
minimisation
The client needs to minimize the
taxes on their investment
NA The current tax payable is compared and
a mitigation strategy is checked whether
the taxes are already minimized or need
to be minimized
/ 3
3. Expenses Mortgage Payment to be
completed within 7 years
$11000
0
This amount is checked from the
mortgage balance left with the
clients /3
Wealth Creation
4. Superannuati
on
Increase fund balance in super
annuation account in 7 years
time
This would be verified by analyzing
the surplus income which is left with
the client.
/ 3
5. Investment
Planning
The client requires the planning
of the retirement portfolio and the
funding of grandchildren
education.
The risk and return objectives of the
client along with available funds and
expected funds which are going to
be earned by the client. / 3
6. Debt
reduction
Remove Mortgage in 7 years $11000
0
This would be done by analyzing the
mortgage statement of the client / 3
Wealth Protection
7. Personal
Insurance
The insurance of the client which
is already covered needs to be
verified and if any additional
cover is required would be
recommended
This would be verified by analyzing
the current insurance policy of the
client.
/ 3
8. Estate
Planning
The clients lack an estate plan
and hence would require
planning of the estate.
As provided by the client which
highlights the absence of will
/ 3
/ 24
Continued
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Assessment Task 1, continued
1.3 a) Develop
strategic
options
FNSFPLN502.1.3
FNSFPL508.1.3
From the scenario in your case study, establish the basis for strategy
development by identifying the strategic options for each generic need.
You should develop a minimum of three options for each generic need
which would act as a hypothesis for you to investigate further.
Generic Needs Possible Options Marks
Cashflow Management
i) Income  Investment in a better superannuation fund.
 Investment in the capital markets.
 Increased savings in cash markets and earn interest / 3
ii) Tax
minimisation
 Increase in salary sacrificing
 Putting investments in the different types of taxable accounts
 Reducing salary by favoring in tax free investments / 3
iii) Expenses 
/ 3
Wealth Creation
iv) Superann-
uation
 Investment in different superannuation account.
 Increased contribution to existing superannuation account.
/ 3
v) Investment
Planning

/ 3
vi) Debt
Reduction
 Paying off mortgage with the savings of the client.
 Reduction in superannuation to pay off the debt. / 3
Wealth Protection
vii) Personal
Insurance
 Increased policy coverage of existing insurance.
 Taking a new insurance which provides better terms
 Taking additional insurance along with the existing insurance. / 3
viii) Estate
Planning / 3
/ 24
continued
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