Develop a Financial Plan - Assessment Task - FNSFPL503

Mentor Education
Develop a Financial Plan
Assessment Task
FNSFPL503
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]
No handwritten responses will be accepted.
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 Establish plan objectives and scope FNSFPL503.1 35 25
2 Develop strategic assumptions FNSFPL503.2 21 15
3 Develop financial plan strategy FNSFPL503.3 36 25
4 Develop financial plan FNSFPL503.4 150 105
Total 242 170
Assessor’s Initials: ____________________
Assessment Date: ____________________
2015 Copyright  Mentor Education Group Pty Ltd Page 1 of 21
tmp2nihth4n3469607_1244774537_970360.doc

Mentor Education
Introduction Name: ____________________
Objective The objective of this assessment is to develop and prepare a
financial plan that meets the client’s needs as described in the case
study assigned to you.
Scope To achieve this objective, you will need to:
 establish plan objectives and scope,
 develop strategic assumptions,
 develop financial plan strategy,
 develop preliminary financial plan,
 ensure compliance of financial plan with regulatory and
organisational requirements, and
 produce completed plan.
The assessment tasks in this assessment require you to have
successfully completed the Complex Financial Planning Research
Spreadsheet 1 in relation to your assigned case study.
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 or would like to request a digital copy of this
assessment task, 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. FNSFPL508.4.4
This assessment will be conducted together with the presentation
requirements in relation to implementation FNSFPL504 and ongoing
service FNSFPL505
Upon successful completion of these assessments, you will be awarded
the unit competency Develop and Prepare Financial Plan FNSFPL503
1
Copyright  Mentor Education Group Pty Ltd 2015 Page 2 of 21
tmp2nihth4n3469607_1244774537_970360.doc

Mentor Education
Assessment Task 1 Name: ____________________
1.0 Establish
plan
objectives
and scope
This first assessment task requires you to establish plan objectives and
scope.
It requires you to:
 review and compare research results to client requirements and
expectations,
 analyse current client situation to determine opportunities and
constraints,
 identify and assess desired financial resource and market
parameters, and
 develop plan objectives for asset growth, income, risk, taxation and
any other objectives developed in consultation with the client.
For this activity, you should refer to the Financial Planning Research
Spreadsheet you prepared in the previous Assessment Task and
complete your answers in the space provided in the following page. An
example has been provided in the first line.
35 marks
Copyright  Mentor Education Group Pty Ltd 2015 Page 3 of 21
tmp2nihth4n3469607_1244774537_970360.doc

Mentor Education
Assessment Task 1, continued Name: ____________________
Plan Objectives Matrix
Generic
Needs
(a) Client requirements and
expectations
(b) Research Results
(strategies, products and markets
analysed)
(c) Opportunities / Constraints
(of current
client situation)
(d) Desired market conditions (e) Plan objectives Mark
Cashflow Management
1. Income i. Maximise Surplus Income i. Approx $31,000 current surplus
income, excluding interest
income from cash & fixed interest
investments
ii. Further $9,100 pa after tax
available after mortgage is paid
off
i. Further promotions/pay
increases
ii. Donna could decide to
continue working PT or
defer retirement
i. Labour market and salaries
continue to improve
Surplus income:
i. Pay off mortgage
ii. Investment for grand
children
Retirement Income:
iii. $40K pa from pension
iv. $25K from Dennis’s PT
work
2. Tax
Minimization
The objective of the client
is to minimize the tax
expeses so that they do
not need to pay
additional taxes.
As per the current situation, they are
not happy with the products which
they have as the tax implications are
high and appropriate investments are
to be undertaken for reducing the tax
liability of the clients
They can arrange a minimum
tax by investing in good financial
scheme
Like investing in health cover
plan.
By investing in govt schemes.
As govt provide subsidy to that
part of income.
The tax may be minimized. Here, these two ways can help in
tax minimization.
Medicare Levy Surcharge vs
Private Health Cover:
 Charitable donations
are tax-deductible
/ 5
3. Expenses The client wants to reduce the
expenses so that they can
effectively.
The personal expenses of the couple
is around $ 40,000 and the same is
considered for the purpose of wealth
planning
The expenses of the clients are
not about to grow
The expenses of the clients
would not alter
Some of the expenses are not
about to change as the same is
necessary for living a desired
standard of living. / 5
Wealth Creation
4. Superan-
nuation
The clients have made a
separate plan for managing
the superannuation funds of
the business.
Income of DONNA after
superannuation is $40000
Income of DENNIS after
superannuation is $25000
The amount which is used and
received by the clients after a
certain age limit preferably after
retirement.
They have invested in plans for
superannuation.
Donna’s superannuation is
currently in a balanced retail
superannuation fund, MM
Superannuation. Her current
balance is $290,000 and earns on
average 7% p.a. after fees and
taxes. She also has $300,000 in
term life and TPD insurance cover
within her superannuation fund.
Dennis has $138,000 in
superannuation savings, held
The investment which is made by
the business focus on the aspect
of creation of wealth for the client
/ 5
Copyright  Mentor Education Group Pty Ltd 2015 Page 4 of 21
tmp2nihth4n3469607_1244774537_970360.doc4112015

Mentor Education
within the PP Superannuation
Fund. The funds are invested
in a capital stable portfolio
with a very low allocation to
growth assets. Returns on this
fund are around 4% p.a. after
fees and taxes.
Continued / 15
Copyright  Mentor Education Group Pty Ltd 2015 Page 5 of 21
tmp2nihth4n3469607_1244774537_970360.doc4112015

Mentor Education
Assessment Task 1, continued Name: ____________________
Plan Objectives Matrix continued
Generic
Needs
(a) Client requirements and
expectations
(b) Research Results
(strategies, products and markets
analysed)
(c) Opportunities / Constraints
(of current
client situation)
(d) Desired market conditions (e) Plan objectives Mark
5. Investment
Planning They want to make
investment in their
superannuation funds,
which will help them in
effective planning for
the future
They need to allocate funds for
the purpose of ensuring that
their grandchildren education
requirements are effectively
met by the client.
The client has the option
to make investment in
long term planning option
so that they can get
appropriate returns in the
long run.
Market should have high
interest rate low risk to
earn high on small invest.
They should invest more
in schemes like $9,000 in
a bank account earning 4%
p.a., $15,000 in a term
deposit earning 4% p.a.
and $12,000 in a cash
management account
earning 5% p.a. / 5
6. Debt
Reduction The couple are planning to
reduce the overall debt so
that the overall risks can be
reduced effectively.
The total debt on the house is
shown to be $ 1,10000 which
the client need to repay
They want to reduce their
debt amount.
Market condition are
favourable as they are
receiving enough amount
of interest on their
investment.
They have to invest total
amount of $50000 from
their saving to make their
home debt free in a short
time.
/ 5
Wealth Protection
7. Personal
Insurance Dennis has $150,000 term
life and TPD with PP Super.
Donna also has
$300,000 in term life
and TPD insurance
cover within her
superannuation fund.
Investment which is made by
Dennis in term life is $150,000
Investment which has been
made by done in term life is
$300,000
There is are several other
products which is
available in the market
which are also appropriate
considering the needs of
the client.
Market should have high
interest rate low risk to
earn high on small invest.
They can invest their extra
income in this investment.
They can invest amount of
$60000 per annum in this
part.
/ 5
8. Estate
Planning The requirement for
Donna is proper estate
planning for the couple
which can meet their
needs effectively
Donna can work as an estate
planner for the purpose of
effectively meeting the
requirement of the client
business.
The scope for generating
income in this area of
operation is immense and
the clients can tap into the
same.
The market conditions are
appropriate for the
purpose of establishing
appropriate estate planning
area.
They can spend a short
part in this part like they
can invest
$10000 per annum to earn
$15000 per annum.
/ 5
Copyright  Mentor Education Group Pty Ltd 2015 Page 6 of 21
tmp2nihth4n3469607_1244774537_970360.doc4112015