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
$ 90 K
$ 45 K
i) Wife’s income: In order to verify the income which is generated
by wife, (Donna), it is essential that the her pay slip, income
statement and her tax filling returns are assessed / 1
ii) Husband’s income: In a similar manner the income of the
husband (Dennis) can be assessed by reviewing his pay slips,
income statement to identify his income, tax returns which he files
to review the amount which is shown by Dennis to tax authorities. / 1
2. Tax i) Wife’s annual tax: The assessment of tax for Donna can be done
by reviewing the tax file which is maintained by her and also the
tax returns which are filed by her. / 1
ii) Husband’s tax: Information regarding the tax payments made by
Dennis can be acquired from the tax file which is maintained by
dennis. / 1
3. Expenses
$ 40 K
$ 10 K
i) Living expenses/mortgage: In order to assess the living
expenses of the clients, assessment should be made for the day
to day expenses of the client such as grocery bills, medical bills
and other kind of bills. The living expenses also covers different
expenses which are incurred for maintenance of the property. For
instance, mortgage coverage can be assessed from the loan
amount which is provided in the first place and other bank related
documents. / 1
ii) Discretionary expenses (holidays etc): In order to ascertain the
discretionary expenses which are incurred by the client can be
related to travelling tickets, hotel bills and other miscellaneous
expenses which are undertaken by the business. / 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
$ 220 K
$ 51 K
i) Wife’s superannuation: The verification of the superannuation
fund can be easily done by assessing the documents like
superannuation fund trust deed, Credentials of the beneficiary of
the trust as well as that of the trust manager. In addition to this,
further assessment can be done of the payments to
superannuation funds / 1
ii) Husband’s superannuation: In a similar manner, for the purpose
of assessing the superannuation of Dennis, evaluation the documents
like superannuation fund trust deed, Credentials of the beneficiary of
the trust as well as that of the trust manager. The monthly payments or
receipts bills should also be assessed. / 1
5. Investments
($ 12 K)
i) Cash Investments Held: In order to assess the cash
investments held by the clients several documents need to be
considered such as bank records, documents relating to
investment of the client and certificate of investment
/ 1
6. Debt
Reduction
($ 130 K)
($ 8 K)
i) Mortgage: The case which is shown for the client reveals that
value of the client’s property is around $ 750,000 and the same
has a mortgage value of $ 130,000. In this aspect reviewing the
document papers for the property for Dennis and Donna is crucial
along with other bank documents. In addition to this, documents
relating to mortgaged is also to be assessed. / 1
ii) Credit Cards: The best way to check the balances for credit
cards is by assessing the credit card authenticity. In addition to
this, the credentials of the credit card provider, bills or receipts of
the transactions done by credit card are also to be assessed. / 1
Wealth Protection
7. Personal
Insurance
$ 100 K
$ Nil K
i) Wife’s current Life/TPD insurance : The case shows that Donna
has a term life and TPD insurance cover of $ 100,000 which is
within the superannuation cover. The personal insurance cover of
Donna is with her superannuation. All documents relating to
insurance and monthly installment of the same is to be assessed. / 1
ii) Husband’s current Life/TPD insurance : The case shows that
Dennis does not have any insurance and therefore no documents
needs to be assessed for such a purpose. / 1
8. Estate
Planning
yes
no
i) Wife’s estate planning: The case shows that Donna is entitled to
some payments which would be on annual basis from the estate
for her aunt and the amount will be $ 17,000. The documents of
her entitlement, tax returns and documents for hidden costs are to
be checked. / 1
ii) Husband’s estate planning: It is not required to develop estate
planning for Dennis as he has not inherited anything from any
estate as per the case study. / 1
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/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 $ 9,000 4 % $ 360
Term deposit $ 15000 4 % $ 600
Cash Management Account $ 12,000 5 % $ 600
Total $ 36,000 $ 1,560
/ 2
Superannuation Contributions (current situation)
Base
Salary
SG Rate Amount
Donna $90,000 $8,550 $8,550
Dennis $45,000 $4,275 $4,275
Total $ 135,000 $ 12,825 $ 12,825
/ 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 $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
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  The identification and
incorporation of the
different sources of
income properly and
incorporate the same in
their portfolio
 The client needs client
needs to seek
appropriate sources of
funds for the purpose of
increasing their funds
Donna -
$
90,000
Dennis
- $
45,000
Verification of Income statements or
tax returns.
/3
2. Tax
minimisation
 The client should adopt
policies that will help
them to minimize the
taxes effectively on the
income generated.
 The clients need to
invest in instruments for
the purpose of minimize
the tax
Donna -
$ 5,939
Dennis
- $
2,630
Assessment of the Tax returns
/ 3
3. Expenses  The clients need to
identify the areas where
maximum expenses are
incurred for any purpose
 The clients also need to
develop a proper plan for
minimizing the expenses
of the clients
Total
expens
e - $
68,200
Verification of bills, invoices and
other receipts which depicts day to
day expenses.
/3
Wealth Creation
4. Superannuati
on
 The client need to
develop plans for
enhancing the funds
established in their trust.
Donna -
$
220,000
Dennis
- $
51,000
Verification of the superannuation
trust deed and other related
documents.
/ 3
5. Investment
Planning
 The client needs to make
more investments in
Donna -
$
Assessing the superannuation deed
/ 3
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