Reference no: EM132553517

ACBUS107A Financial Planning Fundamentals Assignment - TAFE NSW Higher Education, Australia

Learning Outcomes - At the end of this subject students will be able to:

1. Explain the financial planning environment including the role of the financial planner, the participants in the advisory services market and the range of services provided by financial planners.

2. Describe the Australian legal framework within which financial planners operate and their legal, social and ethical responsibilities.

3. Identify the strategic considerations of a client's financial planning needs by synthesising technical and holistic information.

4. Undertake an examination of client data, conduct research and analysis to construct strategies to meet client requirements in an ethical and professional manner.

Assessment 1 - Role Play

For this assessment, students will be required to role play being a financial planner during a first client meeting, presenting the Financial Planning Process, Financial Services Guide and uncovering the client's initial goals and objectives.

You will meet with a client/s, to begin helping them with their financial planning needs.

This assessment will develop verbal and non-verbal communication skills. Students will form in groups of two or three (Financial Planner and client/s), where they will present the Financial Planning Process, their Financial Planning company's Financial Services Guide and uncover at least one goal that needs to be re-phrased as a S.M.A.R.T goal in an 'initial client meeting'. The teacher will assess how professionally the student presents and communicates the process and Financial Services Guide content, as well as effectively communicating and conducting a meeting in front of peers and an assessor.

This task requires the use of technical interpretation. It demonstrates the students understanding of the relevant knowledge and displays the presenter's ability to explain the issues involved and orally communicate the financial planning process and Financial Services Guide content, as well as demonstrating the student's ability to lead discussion on the topic.

Assessment 2 - Scaled Statement of Advice Assessment

Introduction - You are a financial adviser for "Sydney Financial Planning Pty Ltd". You have conducted a Financial Needs Analysis (FNA) for the client outlined below. An extract of this FNA is provided below is used to assist you in formulate an appropriate analysis of Travis's needs for the Assessment Tasks.

The client for this case study is Travis Bronson (details provided below). His concerns are about not having adequate savings and available funds for a deposit on his first home.

Tasks - The assessment is broken into 2 parts:

A. Strategy Report

For this assessment, you are required to extract data from the data collection instrument supplied and analyse the information provided. You are then required to undertake research and analysis on this client scenario. A series of Research Working questions are provided below to assist you in structuring your research. You must then recommend suitable strategies and/or general product/s appropriate to the needs of your client and write a report outlining your analysis and recommendations. This MUST comprise of two (2) areas of advice, one of which must be "Financial Planning - Budgeting and Debt Management". The format of the report must be in accordance with the ASIC requirements.

Written submissions should be a minimum of 1,500 and maximum of 2,500 words in length and professionally presented according to the ASIC requirements. Assignments must be typed in a legible font at least 12 point in size, Calibri, with numbered pages, at least a 2cm margin and double spacing.

Strategy Report Task Outline

To prepare the Strategy Report the student must undertake research and prepare calculations relevant to the client as suggested under "Research Workings". Some workings will be done in class time.

SUGGESTED RESEARCH WORKINGS (This part is NOT Assessable but will assist in preparing the Strategy Report & Client Presentation Pack)

1. From the first meeting with your client, was there any missing information that you would need to clarify. For instance:

A. What information is missing or what would you like more detail on?

B. How would you communicate the collection of this information? and

C. Where would you document your questions and the client's reply of this additional information required?

2. What issues do you believe you should discuss with your client? Include other goals or risks you may identify, if they are not listed in the case study.

3. Identify, set and prioritise your client's S.M.A.R.T goals and objectives. Include the goals you have identified and list whether they are short, medium or long term goals.

4. What goals are there that you may identify (or the client has stated) that you may suggest the client address at a later stage (when their more urgent goals are met)?

5. What risks are there to the client not meeting his goals? Think about personal risks, legislative risks, market cycle risks.

6. Calculate the client's annual after-tax income (include Medicare levy). Use current financial year tax rates. (This will be done in class in the relevant topic week - make sure you attend or obtain this information)

7. a. Prepare a Cash Flow Analysis and Net worth Statement for your client to determine what the current income surplus/deficit is and net worth position. (This will be done in class in the relevant topic week - make sure you attend or obtain this information)

b. Assume from your discussions with client that his credit card expenditure is largely discretionary (clothes, coffees, bought lunches etc) and that he is prepared to follow a budget limiting these expenses. Redo client's Cash Flow Analysis planning for him to stick to a credit card spend of $700 per month, determining a new surplus/deficit amount.

8. Using the Life Insurance Calculator (on Moodle), how much Life Insurance (Life, TPD and Income Protection) does client ideally need? (This will be done in class in the relevant topic week - make sure you attend or obtain this information)

9. What suitable outcomes (strategies) can you match to the goals you have identified and prioritised, utilising any surplus identified?

10. Explain how you would deal with the client's superannuation.

STRATEGY REPORT (This part is Assessed and utilises the Research Workings)

1. Construct a Strategy Report using:

the template provided (on Moodle) and

Scaled Statement of Advice - Strategy Report Checklist (on next page) and

the answers from your Research Workings following ASIC guidelines and learned content.

2. List what strategies you would advise your clients to write in your Strategy Paper. Include your recommendations on two areas of advice, ONE MUST be budgeting and debt management.

3. Research any relevant products (eg; the clients 2 super funds and life insurance) and explain why they would achieve the strategy. Show your analysis.

4. Use the "Scaled Statement of Advice - Strategy Report Checklist" below to ensure your report contains all assessable information.

B. Client Presentation Pack

For this assessment, you are required to utilise the Strategy Report prepared in Part A of this assessment and prepare a succinct slide pack to present the main concepts/recommendations to the client.

Your Presentation Pack should be:

professionally prepared in Powerpoint,

utilise a combination of bullet points, short paragraphs and suitable diagrams/charts/aids.

it should be no longer than 8-10 slides in total, with no more than 90 words (including titles) per slide (charts excluded).

include notes with appropriate script for each slide

designed to take under 30 minutes if presented personally to the client (you will not be presenting this as part of this assessment).

Attachment:- Financial Planning Fundamentals Assignment File.rar