Financial Planning Case Study

Running head: FINANCIAL PLANNING
Financial Planning
Name of the Student:
Name of the University:
Authors Note:

FINANCIAL PLANNING
1
Table of Contents
Case Study 1:..............................................................................................................................2
Indicating the preferred My Super Product, comparing the dashboards and indicating the
information that is needed prior to the final advice:..................................................................2
Case Study 2:..............................................................................................................................3
a. Presenting the table with adequate arithmetic mean for 10-year, 20-year and whole with the
standard deviation of whole year:..............................................................................................3
b. Comparing the obtained results and depicting why there is a difference in value:................3
c. Comparing the data in exhibit B Australian listed property and Residential Investment
Property, while explaining the reason behind Residential Investment Property return being
informative:................................................................................................................................4
Case Study 3:..............................................................................................................................5
Indicating the advice that can be provided to Bob Miller considering the emotional stage,
while indicating whether he should be away from volatile measurement:................................5
Indicating the suitable strategy or advising him to stay in course, while depicting the way to
convince him:.............................................................................................................................5
Reference and Bibliography:......................................................................................................6
Appendices:................................................................................................................................7

FINANCIAL PLANNING
2
Case Study 1:
Indicating the preferred My Super Product, comparing the dashboards and indicating
the information that is needed prior to the final advice:
From the overall valuation of appendix 1, 2 and 3, the overall difference between the
three potential MySuper options, this can eventually help in making an adequate decision.
The analysis relevant revealed that the selection of Aon MySuper option will be beneficial for
both Bill and Agatha, as it illustrates on the investment options that will be conducted. In
addition, the detailing and cost of investment is adequately depicted in the dashboard, which
is relevantly helpful in making informed decisions. Moreover, in accordance with details of
Royal Commission the overall investment option such as AMP Flexible Lifetime Super and
Colonial First State (A subsidiary of CBA) FirstChoice Lifestage is considered to be
problematic. However, there were allegations against Aon MySuper, which was not
supported by adequate evidence and has been challenged by AHFA. Therefore, investment in
Aon MySuper can be considered by Bill and Agatha
(Financialservices.royalcommission.gov.au 2018).
The dashboard portrayed adequate information, while some of the information is
missing, which can be considered to be minor details regarding the previous progress of the
designed investment plan. This detailed information about the past performance can
eventually help in detecting the significant returns, which can be generated from the growth
stocks. This would eventually help in understanding the level of risk and return attributes of
the investment options and helps in making the appropriate decision regarding the
investment. Aon MySuper is considered to be the best options available to Bill and Agatha.

FINANCIAL PLANNING
3
Case Study 2:
a. Presenting the table with adequate arithmetic mean for 10-year, 20-year and whole
with the standard deviation of whole year:
Mean Annual Returns Std. Dev of Annual Returns
Australian
Equity
10-Year 7.8%
Whole period 21.5%
20-year 10.2%
Whole period 13.3%
Australian
Bonds
10-Year 6.3%
Whole period 6.8%
20-year 6.9%
Whole period 10.0%
International
Equity
10-Year 4.5%
Whole period 4.4%
20-year 5.1%
Whole period 7.8%
International
Equity
(Hedged)
10-Year 6.8%
Whole period 20.9%
20-year 8.3%
Whole period 13.1%
International
Bonds
(Hedged)
10-Year 9.2%
Whole period 17.6%
20-year 9.9%
Whole period 12.6%
A-Reits
10-Year 7.4%
Whole period 6.3%
20-year 7.9%
Whole period 11.1%
Cash
10-Year 5.9%
Whole period 17.7%
20-year 10.3%
Whole period 12.0%
b. Comparing the obtained results and depicting why there is a difference in value:
There is difference in the overall calculation made in the above table and the values
listed in Exhibit B, which is due to the calculations used for deriving the returns. The above
table has used arithmetic method for deriving the overall returns, which unfairly weights the
percentage of gains equalling the percentage of losses. Hence, the measure does not consider
that losses of 50% in one year cannot be compensated by gains of 50%. This is the main
reason why the overall returns of the table is higher than the listed returns in Exhibit B. The