AFA 3 Advanced Advice Solutions Assessment 2: Advice Strategy Paper Assessment marks: 45 | Presentation marks: 5 Total marks: 50 Your assessment should be loaded into KapLearn by 11.30 pm on the due date. All times are based on AEDT/AEST time zones. Refer to ‘Time remaining’ on the ‘Assessment’ page in KapLearn to ensure you submit yourassessmentby the specified due date and time. Important:This document must be submitted in Microsoft Word format, andnotin PDF. Name:<Type here> Student number:<Type here> Grade GradeAbbreviationMark range (%)Mark (%) High DistinctionHD85–100<Mark here> DistinctionD75–84<Mark here> CreditCR65–74<Mark here> PassP50–64<Mark here> FailF0–49<Mark here> Assessment feedback For marker use only. 1
Instructions to students •This assessment covers Topics 5 to 8 and accounts for 50% of your final grade. •There are two (2) short-answer questions and one (1) extended response in this assessment. You should answerallquestions. •The overall word limit for the assessment is 3200 words. Headings, quotes and references within the body of the answer are included in the word count. Numerical tables, calculations, and reference lists are not included. •Refer to theCriteria-based Marking Guidefor guidelines on what is expected for each question. •The ‘General assessment information’ sectioninKapLearn contains information about format and presentation, wordlimits, citations and referencing, collusion, plagiarismand other policies, usefulresources, submitting your assessment and accessing your results. •Full workings must be shown for all calculations. Showallcalculations in the text of your assessment and NOT attached as an additional document. Additional documents will NOT be considered in the marking. •Answers are to be in your own words. Reference and cite all your sources (within the text of your answer) when quoting or using material from external sources. Include a reference list at the end of your assessment.Refer to the ‘Referencing and Citations Guide’ available from the ‘Library Learning Hub’ in KapLearn for further information on referencing. •Indicative weightings are noted beside each question. Use these weightings to assist you with your allocation of time and resources. The weightings indicate the relative importance of each question. •Stateallassumptions used in providing your answer. •Requests for special consideration or information pertaining to special consideration written in the body of the assessment will not be considered by the marker. Refer to the ‘special consideration’ section of the Assessment Policy on Kaplan’s website for more information. 2
Assessment presentation and referencing(5 marks) Your answers are expected to be presented in a manner that would be befitting a real client scenario. Youmay be required to research beyond the subject notes in answering the questions in this assessment. Reference and cite all your sources when quoting or using material from external sources. Include a reference list at the end of your assessment. You are required to: •use appropriate presentation and format for your assessment •demonstrate independent research and analysis •demonstrate appropriate use of relevant references •follow the Harvard referencing style as recommended in the ‘Referencing and Citationsavailable from the ‘Library Learning Hub’ in KapLearn •include a reference list at the end of your assessment following the recommended referencingstyle •adhere with the assessment word limit. Criteria-based marking guide for presentation and referencing The Criteria-based Marking Guide provided at the end of each question is designed to assist students to understand what is expected of them in each question and to let them know how their performance will be judged. It provides advice about the criteria used in the marking of the question and what discriminates between an excellent, satisfactory and unsatisfactory answer. Excellent (Mark range: 4–5 marks) Satisfactory (Mark range: 2.5–3.5 marks) Unsatisfactory (Mark range: 0–2 marks) •clear and appropriate assessment layout and structure •clear evidence of independent research and analysis incorporated throughout assessment •appropriate use of referencing •accurate use of Harvard referencing style •comprehensive reference list provided at end of assessment •adequate assessment layout and structure •some evidence of independent research and analysis •appropriate use of referencing •use of Harvard referencing style •reference list provided at end of assessment •poor assessment layout and/or structure •assessment is significantly under or over the word limit •no demonstrated independent research or analysis •no use of references •referencing does not use Harvard referencing style •no or inadequate reference list provided at end of assessment 3
Post-retirement case study You are required to use the following case study to complete the assessment questions. Please read it carefully and pay particular attention to the quantitative measures of the scenario. Ida, who is 75, has recently been widowed following the death of her husband Eric, whowas aged 77. Idaand Eric have three children, John (51), Philip (48), and Cheyenne (45). All three children are independent, with Philip and John having their own family. Cheyenne has had numerous relationship problems, has been married twice, and has three children from separate fathers. Ida owned her home as joint tenants with her late husband and this is now in her own name. There is no outstanding mortgage nor other debts. She has recently received a $200,000 inheritance from her late mother’s estate. Ida is fully retired and only worked for a few years before she married Eric. Ida’s general living expenses are $3,000 per month (this does not include any of the specific expenses mentioned below). Ida’s home and contents insurance premium is $749 per annum. Ida also has a ten-year-old Honda Civic. The comprehensive insurance premium for the car is $565 p.a. and she has compulsory third party insurance with a premium of $626 per annum. She also has health insurance with a premium of $1,152 p.a. She pays all these bills by cheque. Ida does not have any other insurance. Ida goes on regular National Seniors coach trips that cost on average $675 per quarter. She is also planning an organised European Heritage tour. The total package, including airfares, etc. is$9,000. Ida has a four-year term deposit of $20,000, earning 2.5%, with the interest paid monthly. This term deposit is due to mature in six months. In addition, she has a cheque account, which rarely has a balance of over $1,000, that does not pay interest and she is charged $5 per month. Ida has a superannuation fund with a balance of $79,000 made up of $36,000 tax free component and $43,000 taxable component (element taxed). She has continued to hold her superannuation benefit within the accumulation phase so she can use it to cover any excess costs and to use as an emergency fund. Herbelief is that if it is used as an income stream she will lose access to the funds. Eric’s superannuation benefit was in the pension phase, that he commenced just prior to attaining age 65 with a purchase price of $225,000. At the time of Eric’s death, the balance was $161,000 made up of $68,000 tax-free component and $93,000 taxable component (element taxed), he was receiving income payments of $9,660 per annum. Eric commenced this account based pension prior to 1 January 2015, andhas continuously received aged pension since this date. Ida is the automatic reversionary beneficiary. Ida has been advised that she will have a reduction in her Age Pension entitlement, which she is unhappy about. She would like to have the same amount of Age Pension she had when Eric was still alive. 4
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