Superannuation and Retirement Planning Role Play Assignment - Finance

This assignment is a role-play scenario focused on superannuation and retirement planning. It involves a financial advisor (reviewer) and a client (Nathan and Mary) discussing retirement goals, risk tolerance, and investment strategies. The role play covers key aspects like the Financial Services Guide (FSG), risk profiles, short, medium, and long-term objectives, and investment recommendations, including superannuation funds, shares, and equity. The scenario analyzes current and projected cash flows, tax implications, and potential concerns regarding the retirement plan's affordability. The advisor provides clarifications, addresses potential risks, and projects retirement balances, ultimately leading to the client's agreement with the recommended plan.

Superannuation and
Retirement Planning-Oral B

TABLE OF CONTENTS
ROLE PLAY....................................................................................................................................1
Section 1 and 2............................................................................................................................1
Section 3......................................................................................................................................1
Section 4......................................................................................................................................2
Section 5......................................................................................................................................2
Section 6......................................................................................................................................3
Section 7 and 8............................................................................................................................3

ROLE PLAY
Section 1 and 2
Reviewer: Hello Nathan. How are you?
Nathan: Hello! I am good. How are you?
Reviewer: I am good too. Thanks for asking.
Nathan: Good to hear that.
Reviewer: I would like to give you the brief about my roles mad responsibilities. I am a qualified
investment professional who mainly focuses on meeting the long term goals and objectives of the
customer. The key role of mine is to effectively analyse the goals of the customer. I also focus on
analysing the risk tolerance capacity of the client. I am responsible for identifying the suitable
class of investment for the customer in order to gain higher returns.
Nathan: Okay, I accurately understand the goals and responsibilities of yours.
Reviewer: As I have already discussed with you about the FSG. I would further like to review
you about it once more. FSG is referred to as the financial service guide that helps in making the
informed decisions about the services that are offered. It helps client in determining the clear set
of provisions which is required for proper complaint handling. Financial service guide mainly
focuses on providing the assured services related with the compliant given by the company. It is
very useful in determining the negative implications. This is considered to be one of the crucial
document because it helps customer s in de terming whether to use particulars financial services
offered by the company. FSG tends to contain valid information associated with who are we,
what kind of financial services are offered, who we and other individual are connected with those
services, our privacy, how we actually de al with complaints and how we can be contacted.
Nathan and Mary: Okay we completely understand the key information which are presented in
the Financial service guide (FSG). This has also made us clear about how the complaints will be
effectively handled.
Section 3
Reviewer: That's great. Okay Nathan so now I would like to clarify it with you the risk profile.
Would you like to both avail retirement benefits separately?
Nathan: Yes, me and Mary would like to avail retirement benefit separately.
Reviewer: Okay, Nathan! Can funds associated for the education of the children can be
accordingly increased or decreased in respect with the future requirement ?
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Nathan and Mary: Yes, it can be adjusted according to the future requirement need.
Reviewer: What is the current amount of tax paid by you and Mary and how much variation is
acceptable?
Nathan: The current amount of tax is approximately $3000. The variation expected by us are
around 1 to 2%.
Reviewer: Do any of the children earn any income which is not taxable under income of parents?
Nathan: No, none of the children earn any income which is not taxable under income of parents.
Reviewer: Okay Nathan! This is considered to be as the accurate reflection of the risk tolerance.
As you both are working, you can have appropriate benefits in the old age.
Nathan: Okay.
Section 4
Reviewer: Mr. Nathan, I would like to know about the needs and objectives in relation with the
retirement?
Nathan: The key objective of mine and Mary is to effectively channel their surplus income into
an appropriate retirement plan. Another medium term objective of ours is to earn consistent
return at a stable rate. The long term goal and objective of mine and Mary is to generate
sufficient amount of money at the time of their retirement. Another major objective is to reduce
tax liability. The salary from employment of mine is 140,000 and of Mary is 70600. The
combined salary from employment is 210600. The taxable income of the mine is 127400 and of
Mary is 64246. The combined taxable income is 191646. The total tax paid by me is 38220 and
by Mary is 19273. The combined tax paid by both of us is 57493. The total new cash flow of
mine is 89180 and of Mary is 44973. The combined total net cash flow is 134153.
Section 5
Reviewer: Okay Nathan, I completely understand the goals and objectives in relation with the
retirement planning. As per the goals and objectives for the short term, I would recommend you
to invest in superannuation fund for 1 year. For medium term objectives, you can invest in shares
for more return. For long term objectives, you can invest in equity. After the implication of this r
recommendable strategy, the net cash flow of the Nathan post strategy implementation is
112,699 and for Mary is 53,381. The combined net cash flow of Nathan and Mary is 166,079.
Nathan: Okay.
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Section 6
Reviewer: Do you have any concern or need any clarification regarding the plan?
Nathan: yes, are you sure we can afford this retirement plan? Is there any possibility that Mine
and Mary's cash flow will not be sufficient?
Reviewer: No, everything is calculated and it consists of all charges, fess, annual payments,
taxes, etc. There is no chance that the plan will exceed cash flow limit.
Nathan: Okay. Can you explain me the projected amount balances when I will turn age 65?
Also, tell me the risk associated with the planned projections?
Reviewer: The amount is projected with the super facts calculator which in turn helps in
appropriately projecting the amount after the retirement plan. Change in the market rate is a
major risk associated with the planned projections.
Nathan: Okay.
Section 7 and 8
Reviewer: Do you agree with the specified recommendation?
Nathan: Yes, I likely to agree with the recommendation suggested by you. This will help me and
Mary in attaining the short term, medium term and long term objectives.
Reviewer: Do you agree with the plan, policy and strategy?
Nathan: Yes, I completely agree with the plan, policy and strategy. I have effectively determined
the risk associated with the recommendable plan.
Reviewer: Okay! It was nice meeting you Mr Nathan and Mrs. Mary. In case you have any
problem regarding the plan, feel free to contact me.
Nathan: Sure! Have a nice day.
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