Reference no: EM13953242

Assignment: Financial Planning

		First submission	Resubmission (if required)
Case study assignment questions	Section 1
	Section 3
	Section 4
	Section 6
	Section 7
	Statement of Advice
	Cash flow tables
	Seven-year projections

Feedback (assessor to complete)

Before you begin

Read everything in this document before you start your assignment for Financial Planning.

About this document

This document includes the following parts:

• Part 1: Instructions for completing and submitting this assignment
• Part 2: The case study
• Appendix 1: Fact finder and risk profile
• Appendix 2: Financial planning questions (assessment workbook):

-Case study questions

-Statement of advice (SOA) template

-Cash flow tables

-Five-year projection table

• Appendix 3: Assumptions.

Saving your work

Download this document to your desktop, type your answers in the spaces provided and save your work regularly.

How to use the study plan

We recommend that you use the study planfor this subject to help you manage your time to complete theassignment within your enrolment period. Your study plan is in theKapLearn Financial Planning subject room.

How to use the sample case study and SOA in KapLearn

The sample case study provides a modelto help you prepare your SOA for this assignment. The case studyexplains the process that is undertaken to develop the SOA withreference to an example and it is a very useful resource. Download thesample SOA and refer to it as you work through the learning materialsfor this subject.

Before you start work on this assignment, go back to the sample SOA and:

• compare how the SOA matches with the goals and objectives identified in the case study
• consider what information has been included in the SOA
• consider why this information has been included.

This exercise will help you prepare anSOA for this assignment that addresses your client's goals. Please bearin mind that not all SOAs are exactly alike in their construction, butall have common heading topics within them. Accordingly, there may beminor differences between the sample SOA and the SOA template in thisassignment. However, all the required compliance elements will beincluded in both formats.

Part 1: Instructions for completing and submitting this assignment

Completing the assignment

The assignment

For this assignment you are required to complete the following tasks:

In your assessment workbook:

• answer the assignment questions as they relate to sections 1, 3, 4, 6 and 7 of the case study
• complete the template SOA for your client, using the data in the case study, the fact finder and risk profile
• complete the two (2) cash flow tables
• calculate the five year projections.

The information and resources that canassist you in answering the questions in this assignment can beprimarily sourced from the Foundations of Financial Planning text and the sample case study. Some data will have to be externallysourced, but the assignment template will clearly indicate where this isnecessary.

You are expected to analyse the 11 areascovered in the data analysis stage, explained in Topic 2, as well asreview the sample case study and sample SOA. Additionally, you will needto weigh up the client's opinion against your own analysis to determinethe important areas that need to be addressed for the client.

Although the case study may indicatethat the client does not wish to have advice provided about a specificarea, you need still to evaluate the situation, provide clear reasons asto why, or why not, review the area, and make referrals to specialistsif necessary in the relevant sections of the template.

You do not have to provide retirement planning calculations and recommendations.

However, you must consider theappropriateness of all the investments held by Jessica. If you recommendany change to her current asset allocation (including those in hersuperannuation fund), you must explain why this action is appropriate.That is, why there is a need to change the asset allocation, or toreplace or sell an investment.

With regard to insurance, you are notexpected to provide a detailed analysis of Jessica's needs. However,this area still needs to be examined. If your analysis shows that sherequires additional insurance and could benefit from a review, youshould advise her of this. Alternatively, clearly explain why youbelieve her current cover is sufficient.

More information regarding requirements for providing advice is included throughout the assignment.

Word count

The word count shown with each questionis purely indicative. You may exceed the word count by a minimal amount,however, please do not include additional information which is outsidethe scope of the question.

The Jessica Bigge case study

The case study steps you through thefinancial planning process, from initial contact with Jessica Bigge, tothe development and documentation of a financial strategy as an SOA tomeet her needs.

Fact finder and risk profile

The fact finder for Jessica and her risk profile are provided. You will find these in Appendix 1.

The data in these documents has been used to complete some of the sections in the SOA.

You will need to refer to these documents to complete the financial position tables for your client.

Additional research

You will be required to sourceadditional information from other organisations in the financialservices industry to find the appropriate product/s to meet Jessica'srequirements, and perhaps to calculate your service fees.

Submitting the assignment

You must submit your completedassignment in a compatible Microsoft Word document. You need to save andsubmit this entire document - not just Appendix 2: Financial planningquestions (assessment workbook).

Do not remove any sections of the document.

Do not save your completed assignment as a PDF.

The assignment must be completed before submitting it to Kaplan Professional Education. Incomplete assignments will be returned to you unmarked.

The maximum file size is 5MB. Once you submit your assignment for marking you will be unable to make any further changes to it.

You are able to submit your assignmentearlier than the deadline if you are confident you have completed allparts and have prepared a quality submission.

The assignment marking process

You have 12 weeks from the date of your enrolment in this subject to submit your completed assignment.

Your assessor will mark your assignmentand return it to you in the Financial Planning subject room in KapLearnunder the 'Assessment' tab.

'Not yet competent' and resubmissions

Should sections of your assignment bemarked as 'not yet competent' you will be given additional opportunitiesto amend your responses so that you can demonstrate your competency tothe required level.

You must address the assessor's feedbackin your amended responses. You only need amend those sections where theassessor has determined you are 'not yet competent'.

Make changes to your original submission. Use a different text colour for your resubmission.Your assessor will be in a better position to gauge the quality andnature of your changes. Ensure you leave your first assessor's commentsin your assignment, so your second assessor can see the instructionsthat were originally provided for you. Do not change any comments madeby a Kaplan assessor.

Units of competency

This assignment is your opportunity to demonstrate your competency against these units:

FNSASICZ503A	Provide advice in financial planning
FNSFPL501A	Comply with financial planning practice ethical and operational guidelines and regulations
FNSFPL502A	Conduct financial planning analysis and research
FNSFPL503A	Develop and prepare financial plan
FNSFPL504A	Implement financial plan
FNSFPL505A	Review financial plans and provide ongoing service
FNSFPL506A	Determine client requirements and expectations
FNSINC401A	Apply principles of professional practice to work in the financial services industry
BSBITU402A	Develop and use complex spreadsheets

We are here to help

If you have any questions about thisassignment you can post your query on the 'Ask your Tutor' forum in yoursubject room under the 'Help' tab. You can expect an answer within 24hours of your posting from one of our technical advisers or studentsupport staff.

Part 2: The case study

Introduction

You are a financial planner for EANWBFinancial Planning and authorised to provide financial product advice ona range of investments (excluding direct shares), superannuation andretirement planning, and insurance and risk protection.

You are also able to provide taxationinformation that is incidental to the advice provided. In other words,you can provide information about any potential tax savings or taxbenefits that could result from your recommendations, but you must referthe client to a tax professional for specific tax advice.

You do not have the authority to provideestate planning or property advice and you must refer clients tosuitable professionals should you identify they need advice in areas forwhich you have not been appropriately authorised and trained. (Refer tothe sample SOA and the wording used regarding tax, estate planning andreal estate, as well as the summary of what advice areas are covered,and what are not, at the beginning of the sample SOA.)

Section 1: Meeting your client

The first phone call

Jessica Bigge has agreed to speak withyou following a suggestion made to her by her bank's personal lendingofficer who knows you and is respectful of the quality advice youprovide to your clients. She was in the process of successfullyorganising a loan to purchase her car at the time.

Jessica is unsure of what is involved inpersonal financial planning, but concedes that planning for her futurefinancial objectives could be of value. She agrees to have her contactdetails passed on to you by the bank's lending officer so that you cantell her about what is involved in the financial planning process, whatthe possible benefits might be to her, and costs involved.

When you phone Jessica, you provide herwith details about the financial planning process, and why you will needto ask her for certain types of financial information. You stress thatyou work for a licensee (a person authorised by the Government to dealin financial products) and any information she gives you will be treatedconfidentially. You let her know that this information will only beused to provide the financial advice you consider will meet her needs.You tell her all this information is in the Financial Services Guide(FSG) that you will send her.

Jessica is reassured by yourintroduction so you proceed. You explain you need her to contribute tothe compilation of a financial profile in order to help you work out howshe can best meet her financial goals. This means that she will need totell you what she owns, what she owes, what she earns and her livingexpenses. She can record all this information in the fact finder youwill send her with the FSG. You inform Jessica that the fact finder alsoincludes a risk profile section and the information she provides youwill give you sense of her appetite for different financial planningstrategies.

You make a date and time with Jessica tocome to your office and take down her address and phone numbers. Youask Jessica to bring along to the meeting her completed fact finder andas much financial information as she can, such as income details,expenses, superannuation, insurance details, etc.

When you have concluded the call, youmake a file note about the conversation including the date,the potential client's name, and the name of the person who referred herto you. This is the start of your paper trail. You also complete someof the initial details in your data collection form so that it lookslike Table 1.

Finally you write to Jessica, aspromised during your initial conversation, and include the fact finder,the FSG and a checklist of the information she needs to bring to themeeting.

Table 1: Personal details

	Client 1				Client 2
Title	Miss
Surname	Bigge
Given & preferred names	Jessica
Home address	18/43 Benton St, Rozelle, NSW.
Business address	n.a.
Contact phone	(02) 7766 5544
Date of birth	15 July 1986
Sex		Male	û	Female		Male		Female
Smoker		Yes	û	No		Yes		No
Expected retirement age	Haven't really thought about it, but probably 66

The first meeting

Jessica arrives at your office for themeeting. After greeting her and offering her a glass of chilled water,she confirms that she received your package of documents and that shehas filled in the fact finder and the risk profile.

You then take her through the keyelements of the FSG, including your role and capacity to assist her withher planning needs and your company's fees. You make sure that Jessicaunderstands this information before you proceed to the next step.

Collecting the data

You learn the following informationabout Jessica through a process of thorough and polite questioning. Fromtime to time she provides you with a relevant document to confirm herfinancial situation. You confirm the details in the fact finder as youproceed.

Jessica's current situation

Jessica, born 15 July 1986, is single with no dependants, and lives in a rented flat for which she pays rent of $460 per week.

Jessica is a marketing manager for a mining engineering company and has been with that firm for six years.

Jessica earns $70,000 p.a. and receives superannuation guarantee (SG) contributions from her employer in addition to this.

Jessica owns a new Mazda CX5 that she recently borrowed $39,000 from the bank to purchase.

The loan is over five years at a fixedrate of 10% p.a. with the repayments being $850 per month. There is aprepayment fee of $175, though this fee is waived if the loan isrefinanced to another product with the same bank. The car has fullcomprehensive insurance with an annual premium of $1500.

Jessica's needs and objectives

During your conversation with Jessica itbecomes apparent that her principal objective is to save for her ownhome. At this stage she is unsure of the location where she would liketo buy but it would be a unit.

On her own calculations, based on whatshe feels comfortable in borrowing and with her savings, she couldafford a unit up to a purchase price of $550,000. She also said that shewould like to have saved at least 15% of the purchase price and ifpossible, be able to purchase her first home in no more than 5 yearstime.

She is also concerned about the debt shehas incurred buying her car and would like to know the benefits andramifications of paying it off early, particularly in terms of herprimary objective of saving for, and purchasing, her first home.

Jessica admits that she knows verylittle about the sharemarket, how it works, or what it actually means toown shares. However, she is keen to learn more about it following hersuccess with the purchase of Westpac Banking Corporation shares.

Jessica is in good health and believes the insurances within her superannuation fund provide adequate cover.

Jessica does not place superannuationand retirement planning as a priority at the moment, saying thatretirement is a long way off and her employer looks after hersuperannuation anyway.

Jessica does not have a will or powersof attorney in place, and is not overly concerned about the adequacy ofher estate planning.

Superannuation

Jessica has $32,000 in her employer'sdefault superannuation fund, the ABXY Super Fund, and is invested in a'balanced' portfolio. Jessica joined the fund on 19 January 2007.

Jessica does not make any additional contributions to her superannuation fund.

The fund has returned the following, after fees and tax:

2007/08	2008/09	2009/10	2010/11	2011/12	2012/13
-4.5%	-9.5%	8.9%	10.2%	2.1%	8.3%

The investment objective of the fund isto achieve returns after tax and fees that exceed the inflation rate, asmeasured by the CPI, by at least 3% p.a. over rolling five-yearperiods.

The asset allocation for Jessica's balanced growth in her superannuation fund is:

Cash	7%
Australian fixed interest	12%
International fixed interest	10%
Australian equities	30%
Property	18%
International equities	23%

Insurance

Jessica's superannuation fund provides adeath and total and permanent disability (TPD) benefit of $50,000 inaddition to her accumulated superannuation value. The premium is $1.50per week for this level of cover and is deducted from her fund.

Jessica has no other personal insurance cover.

Jessica's car has full comprehensive insurance with an annual premium of $1500.

Jessica also has home contents insurancecover of $20,000 with an excess of $100 including legal liability coverof up to $20 million. Jessica pays $30 per month from her credit cardfor this policy.

Jessica has adequate private healthinsurance cover that she pays $110 per month for on her credit card.This premium includes the private health insurance rebate.

Jessica has advised you that she iscomfortable with the insurances she has in place and does not believethat she requires any further advice at this time.

Investments

Jessica has $57,000 in a term depositearning 4.15% p.a. that is due to mature shortly. She plans to use thesefunds and future savings towards the purchase of her own home in about 5years time, or earlier if possible.

Following advice from her uncle at afamily barbecue, Jessica purchased 59 Westpac Banking Corporation shareson 25 November 2008 at $16.93. The full dividend received for the yearis $1.66 per share fully franked and dividends received are notreinvested.

Jessica also has a small transactionaccount where her pay is deposited. This account is used to pay variousexpenses and her credit card. The account, on average, would have $1000and it does not receive any interest.

Other information

Jessica has a credit card with a limitof $5000 that she uses for all her general expenses and entertainment.However, she does not spend up to her limit and her average expenses are$900 per month, (including home contents and health insurance), whichshe repays within the interest free period.

Each year Jessica goes on a two-week cruise with a friend, which costs $2500.

In addition, she usually spends two weeks with her family during her employer's Christmas leave period.

Jessica is very healthy and has taken very little sick leave and has accumulated 54 days sick leave.

Other expenses include a donation to theNational Breast Cancer Foundation of $10 per week, tax deductible'bucket' donations of $10 p.a. to disaster relief funds, andaccountant's expenses of $150 p.a.

Jessica does not have any dependants andboth her parents are well, fit and active. She has an older brother whois married with two young children and a younger sister who still liveswith her parents.

Risk profiling

Jessica completed the risk profilesection in the fact finder prior to attending the meeting. The completedfact finder and risk profile are in Appendix 1 of the assignment.

Closing the interview

Prior to concluding your meeting withJessica, you review the information provided to her to check that it iscomplete and accurate.

Jessica is naturally curious about thenext step in the process. You answer some additional questions she hasabout what happens next. You explain that with her agreement you willprepare a written report, an SOA, based on the information she has justshared with you. The SOA will be a financial plan detailing a number ofactions she could take to meet her financial goals

Jessica agrees to proceed to the nextstage of the financial planning process, and you make an appointmentwith her to present the plan in a fortnight.

There is a series of questions relatingto Section 1 in the assessment workbook that you need to answer. Youranswers to these questions are your opportunity to demonstrate yourability to establish a relationship with a client.

Section 2: The fact finder and risk profile

After this meeting and when you are in professional practice you would normally take the time now to complete a fact finder.

However, this template has already beenprepared for you based on the information given by Jessica. You willfind that fact finder and risk profile in Appendix 1.

Take some time now to familiariseyourself with Jessica's fact finder and risk profile to confirm that allthe information recorded is correct. You will need to refer to thisdata when you are completing the SOA, the cash flow tables and thefive-year projections.

Section 3: Analysing the data

The next step in the financial planningprocess is to analyse the data provided by Jessica. You do this toensure that you can fully understand her financial situation and needsand are therefore in a position to design a plan that addresses hergoals and objectives.

By analysing the data provided under thefollowing headings you can now start thinking of the strategic optionsthat may be appropriate for Jessica, leading you to then preparing afinancial planning strategy that is designed to meet her needs:

• current position
• debt management
• risk/protection
• savings
• investment
• retirement funding
• future income stream
• social security issues (if any) and implications
• present and future taxation issues
• estate planning.

There is a series of questions relatingto Section 3 in the assessment workbook that you need to answer. Youwill use your answers for Section 3 to help you decide on yourrecommendations for Jessica. Your answers to these questions are youropportunity to demonstrate your ability to analyse a client's needs inpreparation for developing a strategy that aligns with theirrequirements.

Section 4: The strategy

Now that you have analysed the data andselected strategies that could be appropriate, you are in a position tostart drafting the preferred strategy you believe is appropriate forJessica. You will then be able to research and select possible productsthat can support the implementation of that strategy. All of thisinformation you will use in your SOA for Jessica.

There is a series of questions relatingto Section 4 in the assessment workbook that you need to answer. Youwill use your answers for Section 4 to help you decide on yourrecommendations for Jessica. Your answers to these questions are youropportunity to demonstrate your ability to develop a strategy thataligns with her requirements.

Section 5: Completing the SOA

When you have determined the financialplanning recommendations you believe are appropriate for Jessica'sneeds, you then need to prepare her SOA. Use the SOA template providedin the assessment workbook.

Section 6: Presenting the SOA

You meet with Jessica as arranged topresent her SOA. You take the time to outline the proposed strategiesand recommendations, confirming throughout that Jessica understands theplan and how it has been designed to meet her needs.

Satisfied with your explanation of theplan and responses to each of her questions, Jessica agrees to go aheadwith your recommendations.

There is a series of questions relatingto Section 6 in the assessment workbook that you need to answer. Youranswers to these questions are your opportunity to demonstrate yourability to continue to engage your client.

Section 7: Providing ongoing service

Jessica is not sure she will have timefor regular reviews of her financial plan. She expresses the opinionthat the advice seems comprehensive with no need at this stage to committo scheduled reviews.

There is a series of questions relatingto Section 7 in the assessment workbook that you need to answer. Thequestions are your opportunity to demonstrate your ability to work with aclient to implement a plan over the longer term.

Appendix 1: Fact finder and risk profile - Jessica Bigge

Important notice to customers

Your planner must act in your bestinterest and provide appropriate advice when making an investment orinsurance recommendation.

Before making a recommendation, theplanner needs to ask you about your investment objectives, financialsituation and your particular needs.

The information requested in this form will be used strictly for that purpose.

Warning

The planner could make inappropriaterecommendations or give inappropriate advice if you fail to fully andaccurately complete this form.

Personal and employment details

Personal details
	Client 1				Client 2
Title	Miss
Surname	Bigge
Given & preferred names	Jessica
Home address	18/43 Benton St, Rozelle, NSW
Business address	n.a.
Contact phone	(02) 7766 5544
Date of birth	15 July 1986
Sex		Male	û	Female		Male		Female
Smoker		Yes	û	No		Yes		No
Expected retirement age	Haven't really thought about it, but probably 66

Dependants (children or other)
Name	Date of birth	Sex	School	Occupation
n.a.

Employment details

Jessica Bigge OccupationMarketingmanager Employmentstatus Self-employed ûEmployee Self-employed EmployeeNotemployed Pensioner Not employed Pensioner ûPermanent Part-time Permanent Part-time Casual Contractor Casual Contractor Other Government Other GovernmentBusinessstatus Sole proprietor Partnership Sole proprietor Partnership Privatecompany Trust Private company TrustNotesAny other person to becontacted? e.g. accountant, banker, solicitor, etc.

Income, tax and cash flow

Tax calculation	Client 1	Client 2	Combined	Comments
Income from employment
Salary	$70,000
Salary sacrifice	nil
Salary after salary sacrifice	$70,000
Rental income	n.a.
Unfranked dividends	n.a.
Franked dividends	$98			Westpac Banking Corporation dividends
Franking (imputation) credits	$42
Interest	$2,366			$57,000 at 4.15%
Other income (e.g. taxable benefits, trust income, investment income)	n.a.
Capital gains < 1 yr	n.a.
Capital gains > 1 yr	n.a.
Tax-free component of capital gains	n.a.
Assessable income	$72,506
Deductible expenses	$150			Accountant's fees
Donations	$530			$520 National Breast Cancer Foundation

$10 bucket donationOther

nil

Taxable income

$71,826

Tax on taxable income

$14,890

FY 2013/14Non-refundable tax offsets (e.g. LITO/SAPTO)

n.a.

Medicare levy

$1,077

Medicare levy surcharge

n.a.

Franking rebate

$42

Refundable rebates and offsets

n.a.

Total tax

$15,925

Cash flow

Client 1Client 2Combined

Comment

Cash flow

Salary less any salary sacrificed amount

$70,000

Non-taxable income

nil

Rental income

n.a.

Unfranked dividends received

n.a.

Franked dividends received

$98

Interest

$2,366

Other income (e.g. taxable benefits, trust income, investment income, social security benefits, etc.)

nil

Total income received before tax

$72,464

Investment expenses

nil

ExpensesMortgage

n.a.

School fees

n.a.

Utilities

n.a.

Personal insurance

nil

Car insurance

$1,500

Paid from credit cardHome contents Insurance

$360

Paid from credit card Includes legal liabilityHealth insurance

$1,320

Paid from credit cardLiving expenses

$9,120

Expenses through credit cardHolidays

$2,500

House maintenance

n.a.

Motor vehicle

Unknown

Paid as part of the expenses through credit cardOther

$23,920

Rent

$10,200

Car repayments

$530

Donations

$150

Accountant's feesTotal expenses

$49,600

Total income received before tax less total expenses

$22,864

Total tax payable from tax table above

$15,925

Total net cash flow

$6,939

Assets and liabilities

Asset	Owner	Value	Liabilities	Net value	Notes
Personal assets
Family home		n.a.	n.a.
Home contents	Jessica	$20,000	$0	$20,000	Insured value and includes legal liability cover
Car	Jessica	$39,000	$39,000	$0
Total		$59,000	$39,000	$20,000
Superannuation
Employer superannuation	Jessica	$32,000	n.a.	$32,000
Total		$32,000		$32,000
Other assets
Investment property	n.a.	n.a.	n.a.
Savings account	Jessica	$1,000	nil	$1,000	Transaction account
Term deposit	Jessica	$57,000	nil	$57,000
Shares	Jessica	$2,070	nil	$2,070	Westpac Banking Corporation current price $35.08
Total		$60,070	nil	$60,070
Net worth		$151,070	$39,000	$112,070

Liabilities
Loan	Current debt	Percentage tax deductible	Interest only	Repayment
Home loan	n.a.	n.a.
Investment property	n.a.	n.a.
Investment loan	n.a.	n.a.
Personal loan	$39,000	nil	No	$850 per month
Other	n.a.	n.a.
Total	$39,000	$0

Needs and objectives

Details	Comments
Save for her own home	Has been saving towards it using termdeposits. Has estimated that she could afford purchase price of up to$550,000 using mortgage and savings. Would like to have saved at least15% of the purchase price and be in a position to buy in no later than 5years time
Decrease debt	Concerned about debt - interested in payingoff early but requires guidance on the effect (if any) to her primarydesire to purchase her first home
Cruise with friend	$2500 annually
Increase sharemarket knowledge	Current knowledge is low
Maintain lifestyle in the event of prolonged illness	To be reviewed
Other

Estate planning

Do you have a will?		Yes	û	No
When was it last updated:	/ /
Do you have powers of attorney?		Yes	û	No

Current superannuation, rollovers, insurances and investments

Superannuation
Member	Jessica
Fund name	ABXY Super Fund
Date of joining fund	19 January 2007
Type of fund	û	Accumulation		Defined benefit		Accumulation		Defined benefit
		Pension		Pensioner		Pension		Pensioner
Contribution (e.g. 5% of salary)	SG	By employer		By yourself		By employer		By yourself
Current value of your superannuation fund	$32,000
Amount of death and disability cover	$50,000
Is there provision for you to top up or salary sacrifice?	û	Yes		No		Yes		No

Superannuation taxation details

 Jessica Current value

$32,000

 Tax-free component

$0

 Taxable component:Taxed element

$32,000

 Untaxed element

$0

 Preservation:Preserved

$32,000

 Unrestricted non-preserved

$0

 Restricted non-preserved

$0

 Contributions:Non-concessional contributions:Year 1

$0

 Year 2

$0

 Year 3

$0

 Year 4

$0

 Concessional contributions:Year 1

SG only

 Year 2

SG only

 Year 3

SG only

 Year 4

SG only

Nominated beneficiaries:
Name	Binding		Non-binding

(Yes/No)Trustee discretion

(Yes/No)Yes/NoAmountNonenotedYesIs there any current flags or splits on asuperannuation benefit of yours following a marriagebreakdown?Yes/NoNDetails Are you a beneficiary of any current flagsor splits of a superannuation benefit following a marriagebreakdown?Yes/NoNDetails

Life insurance details
Life insured	Owner	Policy type	Company	Policy number	Death benefit	Comments	Annual premium
Jessica	Superannuation fund	Life	ABXY Super Fund	XTP1234	$50,000	Within superannuation	From superannuation

Disability insurance details
Life insured	Owner	Policy type	Company	Policy number	Death benefit	Comments	Annual premium
Jessica	Superannuation fund	TPD	ABXY Super Fund	XTP1234	$50,000	Within superannuation	From superannuation

Income protection insurance details
Life insured	Owner	Policy type	Company	Policy number	Benefit amount	Waiting period	Benefit payment period	Annual premium
Jessica	n.a.	nil	n.a.

General insurance details
Item covered	Owner	Policy type	Company	Combined policy number	Cover amount	Other benefit	Total annual premium
Car	Jessica	Comprehensive	Ourcover	234907MV	Market Value	nil	$1,500
Contents	Jessica	Contents	Ourcover	438129HC	$20,000	nil	$360 p.a. deducted monthly from credit card
Health	Jessica	Full health	Ourcover	6978/967PH			$1,320 p.a. deducted monthly from credit card

Investment details
Investment type	Company	Purchase date	Units held/fixed rate	Current value	Owner
Term deposit	East Antipodean National Wealth Bank	n.a.		$57,000	Jessica
Shares	Westpac Banking Corporation	25 November 2008	59 shares	$2,070	Jessica
Savings account	East Antipodean National Wealth Bank	n.a.		$1,000	Jessica

Note: An insurance needsanalysis is not required for this assignment. These risk needs tableshave been included to provide a realistic example of the fact-finderprocess.

Risk needs

Insurance needs - life
			Jessica
C	Clean-up fund	Settle all outstanding accounts, including credit cards, bills and funeral costs
I	Income fund	The lump sum required to produce a level of regular income that maintains the family's living standard for a defined period
M	Mortgage fund	The amount necessary to discharge any existing mortgages
E	Education fund	Lump sum determined bycalculating each child's education costs and multiplying by the numberof years of school and/or university remaining
R	Retirement fund	The lump sum necessary to provide adequate funding for retirement
less value of realisable assets
less existing life insurance cover
Recommended sum insured
Recommended sum insured (rounded up to the nearest $10,000)

Insurance needs - TPD

Jessica CClean-up fundSettle alloutstanding accounts, including credit cards, bills and funeralcostsIIncome fundThe lump sum required to produce a levelof regular income that maintains the family's living standard for adefined periodMMortgage fundThe amount necessary todischarge any existing mortgagesEEducation fundLump sumdetermined by calculating each child's education costs and multiplyingby the number of years of school and/or universityremainingRRetirement fundThe lump sum necessary toprovide adequate funding for retirementless value of realisable assetsless existing life insurance coverRecommended sum insuredRecommended sum insured (rounded up to the nearest $10,000)

Insurance needs - Trauma
	Jessica
Funds required to pay out home mortgage
Estimated medical and rehabilitation costs (including cover out-of-pocket health costs)
Other debts
Other expenses
less existing realisable assets
Recommended sum insured
Recommended sum insured (rounded up to the nearest $10,000)

Insurance needs - Income protection
	Jessica
Gross annual income
SG
Total insurable income
Monthly income (i.e. total insurable income / 12)
Recommended monthly benefit (i.e. 75% of total monthly insurable amount)
Benefit payment period
Waiting period to be served

Acknowledgment

The information provided in this financial fact finder is complete and accurate to the best of my knowledge.

I understand that a policy purchasedwithout the completion of a fact finder, or following a partial orinaccurate completion, may not be appropriate to my needs. I alsounderstand that a policy purchased that differs from that recommended bythe planner may not be appropriate to my needs. I acknowledge that theplanner has provided me with the completed financial fact finder, signedby me.

Customer(s) signature(s)

Planner's name

Planner's signature

Date

Investment attitude details

Please answer the following questionsregarding your attitude to financial issues.Are you concerned about theamount of tax that you are paying? Why?Yes/NoI think that I should be able to structure things better to pay less tax like other people seem to do.How important is liquidity (i.e. funds available) to you? Why?Very/Moderately/NotI would like the money available so I can buy a property in the future.If you had funds available for investing, how would you choose to invest them? Why?Term deposits, but don't know what else is available or how it works.Are there certain sorts of investment that you wish to avoid? Which ones?Yes/NoI don't really know.

Risk profile

Determining your investor risk profile	Points
This investor risk profilequestionnaire has been designed to help you understand the type ofinvestor you are, so that with the help of your planner, you can choosethe investments that best match your financial objectives.
Which of the following best describes your current stage of life?
Single with few financial commitments: You are keen to accumulate wealth for the future. Some funds must bekept available for enjoyment, such as cars, clothes, travel andentertainment.	50P
A couple without children: You may be preparing for the future by establishing and furnishing ahome. There are a lot of things you need to buy. You are probably betteroff financially now than you may be in the future.	40
Young family: This is thepeak home purchasing stage. You have a mortgage and a very small amountof savings. Probably dissatisfied with your financial position and theamount of money saved.	35
Mature family: You are inyour peak earning years and have got the mortgage under control. Manypartners also work and any children are growing up and have either lefthome or require less supervision. You are starting to think aboutretirement, although it may be many years away.	30
Preparing for retirement: Youprobably own your own home and have few financial commitments, however,you want to ensure that you can afford a comfortable retirement.Interested in travel, recreation and self-education.	20
Retired: No longer workingyou must rely on existing funds and investments to maintain yourlifestyle. You may be receiving the pension and are keen to enjoy lifeand maintain your health.	10
What return do you reasonably expect to achieve from your investments?
A return without losing any capital.	10
3-7% p.a.	20P
8-12% p.a.	30
13-15% p.a.	40
Over 15% p.a.	50

If you did not need your capital for more than 10 years,for how long would you be prepared to see your investment performingbelow your expectations before you cashed it in?
You would cash it in if there were any loss in value	10
Less than 1 year	20
Up to 3 years	30
Up to 5 years	40P
Up to 7 years	45
Up to 10 years	50
How familiar are you with investment markets?
Very little understanding or interest	10
Not very familiar Would like to know more	20P
Have had enough experience to understand the importance of diversification	30
Understand that markets may fluctuate andthat different market sectors offer different income, growth andtaxation characteristics	40
Experienced with all investment sectors and understand the various factors that may influence performance	50
If you can only get greater tax efficiency from more volatile investments, which balance would you be mostcomfortable with?
Preferably guaranteed returns, before tax savings	10
Stable, reliable returns, minimal tax savings	20P
Some variability in returns, some tax savings	30
Moderate variability in returns, reasonable tax savings	40
Unstable, but potentially higher returns, maximising tax savings	50
Six months after placing your investment you discover that your portfolio has decreased in value by 20%. What would be your reaction?
Horror. Security of capital is critical and you did not intend to take risks	10
You would cut your losses and transfer your money into more secure investment sectors	20
You would be concerned, but would wait to see if the investments improve	30P
This was a calculated risk and you would leave the investments in place, expecting performance to improve	40
You would invest more funds to lower your average investment price, expecting future growth	50
Which of the following best describes your purpose for investing?
You want to invest for longer than fiveyears, probably to the age of 55-60. You are mainly investing for growthto accumulate long-term wealth	50
You are not nearing retirement, have surplus funds to invest and you are aiming to accumulate long-term wealth	40
You have a lump sum, e.g. an inheritance oran eligible termination payment from your employer, and you areuncertain about what secure investment alternatives are available	30
You are nearing retirement and you are investing to ensure that you have sufficient funds available to enjoy retirement	20
You have some specific objectives within the next five years for which you want to save enough money	20P
You want a regular income and/or totally protect the value of your savings	10
Investor profile total points	200

INVESTOR RISK PROFILE SUMMARY

0-50Defensive

You are a conservative investor. Risk mustbe very low and you are prepared to accept lower returns to protectcapital. The negative effects of tax and inflation will not concern you,provided that your initial investment is protected

51-130Moderate

You are a cautious investor seeking betterthan basic returns, but risk must be low. Typically an older investorseeking to protect the wealth that you have accumulated, you may beprepared to consider less aggressive growth investments

131-210Balanced

You are a prudent investor who wants a balanced portfolio to work towards medium to long-term financial goals. You require an investment strategy that will cope with the effects of tax andinflation. Calculated risks will be acceptable to you to achieve good returns

211-300Growth

You are an assertive investor, probablyearning sufficient income to invest most funds for capital growth.Prepared to accept higher volatility and moderate risks, your mainconcern is to accumulate assets over the medium to long term. Yourequire a balanced portfolio, but more aggressive investment strategiesmay be included

301-350High growth

You are an aggressive investor prepared to compromise portfolio balance to pursue potentially greater long-term returns. Your investment choices are diverse, but carry with them a higher levelof risk. Security of capital is secondary to the potential for wealth accumulation

Appendix 2: Financial planning questions

Case study questions

Section 1: Questions - Establishing relationships with clients

Answer the following questions in thespaces provided. The questions are your opportunity to demonstrate yourability to establish a relationship with a client.

Section 1 Part A

Preparation by both the client and theplanning team is essential to a successful client meeting. Describe thepreparation that should be made to ensure the success of the initialinterview held in your office. (250 words)

Assessor feedback:

Section 1 Part B

List the documents that you wouldprovide a client during, or prior to, the initial meeting. Explain thecontents of each document and why they are necessary. (200 words)

Assessor feedback:

Section 1 Part C

Outline how you would develop rapport with a client during your first meeting. (200 words)

Assessor feedback:

Section 1 Part D

Explain to a client the role of theadviser and the relationship with the licensee. Ensure you use languagethat your client would understand. (250 words)

Assessor feedback:

Section 1 Part E

How do you/are you going to maintainyour knowledge of the industry and your obligations under the relevantlegislation? (150 words)

Assessor feedback:

Section 1 Part E

It is important that your clientsunderstand your company's dispute resolution procedure.Explain, step-by-step, a typical internal and external complaintsresolution processes available to a client. (150 words)

Assessor feedback:

Section 2: The fact finder and risk profile

There are no questions for this section.

Section 3: Questions - Analysing the data

Answer the following questions in thespaces provided. The questions are your opportunity to demonstrate yourability to analyse a client's needs in preparation for developing astrategy that aligns with their requirements.

Section 3 Part A

List what you understand to be Jessica'sgoals, needs and objectives. Categorise them into short, medium andlong-term time frames. They should be specific, measurable and have anominated dollar value where possible. (250 words)

Goals/need/objectives	Time frame	Dollar value
Saving for House	Long term	$85,000 (15% of $550,000)
Decrease current debt ( Car Loan)	Medium/Long term	$39,000
More knowledge about share market	Short Term	N/A
2 week cruise	ShortTerm	$2,500

Assessor feedback:

Section 3 Part B

Analyse the data provided by Jessica byanswering the following questions. The questions are designed to helpyou think about the possible issues that any client may have and enableyou to show your skill in analysing a case study across the 11 generalheadings in the data analysis section of the text, and strategydevelopment steps of the financial planning process (refer to Topic 2and the sample case study and sample SOA).

Think carefully about your responses anddo not assume that you are in a position to provide detailed answers toevery question. You may not have enough information, it may be outsideof your licensee's designated authority for this case study (i.e. thematter needs to be referred to a specialist adviser), or it is not oneof Jessica's goals or objectives. In addition, the question may notapply to Jessica's current situation. Where any of the above apply, youstill need to make a comment and explain why the question is notrelevant at this time.

Make sure you constantly refer to thedata you have on Jessica so your responses accurately reflect theinformation she has provided you.

	The questions	Your response	The assessors feedback
a.	Does Jessica need a debt management solution?	No
	If yes, why?

If no, why not?The only debt thatJessica has at the moment is her car loan, she also has $57,000 in a T.Dwhich if she wants can use to pay off her car loan. She is single withno dependants and earns a salary of $70,000 p.a.. Taking all this intoconsideration Jessica does not need a debt management solution at themoment b.Jessica has stated that she is comfortable with her currentinsurance arrangements; however, does Jessica have adequate riskprotection?

Provide reasons for your answer.Jessicadoes not have IP cover under her super which does put her at slight riskin case she is made redundant or if she falls sick. Even though she hasstated that she is quite healthy an injury or sickness can happen atany time so it is always good to be prepared. She does have a decentamount of sick leave accrued so she can afford to go for a IP policywith a longer waiting period which would be cheaper. At the moment asshe does not have any mortgage and any dependants she does notnecessarily has to worry about her Death& TPD insurance at thisstage. c.Does Jessica have sufficient savings to meet her goals?Based onthe current scenario Jessica does not seem to have enough savings tomeet her goals. If yes, why/how?

If not, how much does she need? And bywhen?As Jessica has mentioned in her objectives that she would like tosave at least 15% for her house which she intends to buy in round about 5years' time and clear off most of her personal loan she needs to tryand save a bit more in order to meet her goals , she roughly needs tohave round about $124,000 (car loan + initial deposit)saved in roundabout 5 years' time to be meet her objectives d.Does Jessica have anyinvestments currently, and what is her appetite for different types ofinvestment?At the moment Jessica has shares with Westpac worth $2070 anda TD worth $57,000. Based on her risk profile it seems like Jessica issomeone who is keen on knowing more about different investment options.She seems to be someone who would like to invest in options that providea stable and a reliable return so that she can save the required amountfor her house. What will this mean for any strategy you mightrecommend?With the strategy for recommendations we have to make surethat the client is provided recommendations that suit her risk profile.As Jessica seems to be a person who likes more of a stable return wehave to make sure that the investment recommendations are tailored tosuit her needs e.Are there any present and/or anticipated futuretaxation issues?At the moment she is paying If yes, why and what arethey?

If no, why not?f.Has any provisionbeen made for estate planning?No What could be put in place now for anyanticipated requirements?Jessica can draw a will if she wishes in caseany unforseen incident does occur. For her super benefits she can make abinding nomination bychoosinga Legal Personal Representative sothat her benefits can be paid as per her will

Section 4: Questions - Developing a strategy

Answer the following questions in thespaces provided. The questions are your opportunity to demonstrate yourability to analyse a client's needs and develop a strategy that alignswith their requirements.

Section 4 Part A

Based on your analysis of the data,describe in general terms, the strategies you think will best meetJessica's needs and why. Include what other specialist advice Jessicashould source so that her financial plan is comprehensive. (400 words)

Assessor feedback:

Section 4 Part B

You are now in a position to researchsome products that might meet Jessica's needs. Information on differentproducts are readily available on the internet. For example, for managedfunds, <https://www.morningstar.com.au>provides a fund screener tool that you can use to select funds based ona number of different criteria, (located under 'Tools' on thehomepage). For term deposits and other investments, go to <www.canstar.com.au>.To ensure the appropriate product(s) for your client, you are expectedto research a number of products from different product issuers (morethan two). The URL link should be supplied.

List the investment products you haveresearched here, and indicate why you think each investment you haveresearched may or may not be suitable for Jessica. At the conclusion ofthis process you will need to have found at least two (2) products tomeet your client's needs.

The product (name and URL link)	Why you think it may or may not be the 'best fit' for Jessica.	Indicate which product/s you will use in your plan
Answer here	Answer here	YesNo
Answer here	Answer here	YesNo
Answer here	Answer here	YesNo
Answer here	Answer here	YesNo
Answer here	Answer here	YesNo
Answer here	Answer here	YesNo
Answer here	Answer here	YesNo

Section 5: Completing the SOA

When you have determined the financialplanning recommendations you believe will meet Jessica's needs then youneed to prepare her SOA. Use the SOA template provided in thisassignment to produce your SOA for Jessica.

Tip: The assessor islooking for an SOA that is of a professional standard and is suitablefor presentation to a client. This means your spelling and grammar needsto be correct and that you have written your recommendations so theclient can understand them. Remember: the SOA is an importantcommunication tool you can use to engage your client. A hastily writtenand poorly presented SOA does not engender client trust or confidence inyour expertise or professionalism.

Important instructions for completing the SOA

a.Use the SOA template provided.

SOA preparation software: The useof financial planning software and dealer templates to prepare your SOAis not permitted. Submissions that exhibit excessive reliance on SOAtemplates may be considered a case of plagiarism or collusion and maynot be considered to be a reasonable attempt at the assessment.

b.Your SOA must include strategy recommendations for:

• debt management

• personal investment and savings

• asset allocation (including superannuation).

c.You must prepare an implementationschedule detailing all of the recommendations in the SOA and provide thedetails in the implementation schedule within the SOA.

d.You must also prepare, using anExcel spreadsheet, a table showing the projected balance of Jessica'sinvestment portfolio, over a five-year period, before and after yourrecommendations. This task will be important in showing how yourstrategies may satisfy Jessica's primary financial objective.

d.List any assumptions you have madeto complete your SOA on the assumptions page at the end of the SOA.Assumptions will generally be made:

• regarding missing background information on the clients

• in regards to calculations of future returns from your recommended investments

• for clarity in relation to any of your recommendations

• for fees relating to the products you have recommended.

e.While you are not required toprovide specific recommendations in the following areas for thisassignment, you will need to provide, in the 'Things you need toconsider' section of your SOA, appropriate comments about any issues youhave identified. Those areas are:

• personal insurance

• superannuation

• estate planning.

f.Your investment productrecommendations will need to be based on the research you conducted insection 4 Part B. Please do not include any product disclosurestatements (PDSs) with your assignment submission.

Section 6: Questions - Presenting the SOA

Answer the following questions in thespaces provided. The questions are your opportunity to demonstrate yourability to work with a client to present a financial plan, and then takethe necessary steps to gain their consent to implement yourrecommendations.

Section 6 Part A

Identify two (2) concerns that Jessicamay have with the advice that you have provided. Prepare responses tothese concerns. Ensure that you use language Jessica would understand.(100 words)

Assessor feedback:

Section 6 Part B

Outline the techniques that could beused to ensure that your client understands the advice being providedand to gain their agreement to implement the plan. (150 words)

Assessor feedback:

Section 6 Part C

According to legislative requirements, explain how you would present your fee and cost structure to Jessica. (100 words)

Assessor feedback:

Section 6 Part D

List the documentation, if any, that youneed to present to your client at this stage of the financial planningprocess. (50 words)

Assessor feedback:

Section 6 Part E

Provide a summary of all the documentation that you need to keep in the client's file. (150 words)

Assessor feedback:

Section 7: Questions - Providing ongoing service

Answer the following questions in thespaces provided. The questions are your opportunity to demonstrate yourability to work with a client to implement a plan over the longer term.

Section 7 Part A

Jessica is not sure she will have timefor regular reviews of her financial plan. She expresses the opinionthat the advice seems comprehensive and she believes she could take a'set and forget' approach once it is implemented. Describe how you wouldrespond to Jessica, highlighting why reviews are important. Inaddition, provide details of the type, form and frequency of the ongoingservice that would ideally be provided and the fees/costs associatedwith this service. (400 words)

Assessor feedback:

The SOA template

An SOA has been commenced for JessicaBigge, using the data collected in the interviews, her fact finder andrisk profile. You will need to complete the remaining sections in theSOA as directed. The SOA starts on the following page. Please review thesample case study and the text as a guide to completing your SOA.

Statement of advice

Prepared for

Jessica Bigge

Prepared by

<Your name>

Authorised Representative Number: 66666

AR Address

AR contact details

Authorised Representative of

EANWB Financial Planning

ABN: 1010101010

Australian Financial Services Licensee

Licence No. 101010

Head office: 88 Money Lane, Accumulation.

You are entitled to receive a statementof advice (SOA) whenever we provide you with any personal financialadvice. Personal financial advice is advice that takes into account anyone or more of your objectives, financial situation and needs.

This SOA is a record of the personalfinancial advice provided to you and includes information on the basison which this advice is given, information about fees and commissionsand any interests or associations which might influence the advice.

If this advice includes a recommendationto you to acquire a particular financial product, other thansecurities, or an offer to issue or arrange the issue of a financialproduct to you, we will also provide you with a product disclosurestatement containing information about the particular product to helpyou make an informed decision about that product.

Be aware that the advice contained inthe following SOA is valid for a period of 30 days only. If the plan isnot implemented within this time, it will need to be reviewed foraccuracy.

Executive summary

In this section, you need to provide your client with a concise summary of:

• their situation

• their objectives

• your recommended strategy to achieve the objectives

• the outcomes your client can expect from adopting the strategy.

The client should be able to readthis executive summary and understand the advice you are giving, thereason/s for underpinning the advice, and be able to determine whetheror not their goals have been achieved. There should be sufficient detailto allow the client to make a decision, taking into account any risk/sinvolved and your fees. It should be written in clear, unambiguouslanguage, without jargon and be appropriate to their level of financialunderstanding.

Your situation

This is where you need to summarise your client's current situation.

Assessor feedback:

Your objectives

This is where you need to list your client's objectives (i.e. their financial and non-financial goals, objectives and needs).

Assessor feedback:

Summary of our strategy and recommendations

For the short term - up to one year

This is where you need to summarise your short-term recommendations for your client.

Assessor feedback:

For the medium term - one to five years

This is where you need to summarise your medium-term recommendations for your client.

Assessor feedback:

Summary of expected outcomes if you implement our advice

For example:

Should you proceed with the recommendations contained within this report, we estimate that:

• You will reduce your debt by $XYZ and/or save $ABC.
• You will build wealth in non-superannuation assets through regular contribution of $X.

Assessor feedback:

Risks in our advice

Assessor feedback:

Summary of our fees and commissions

Assessor feedback:

Your next steps

Assessor feedback:

Body

While this section contains similarheadings as the executive summary, the information provided is at agreater level of detail and supports the recommendations made. As withthe executive summary, it should be written in clear, unambiguouslanguage, without jargon and be appropriate to your client's level offinancial understanding.

Section 1: Important information about you

This section contains information about you that we used in preparing our advice, such as:

• your reasons for seeking advice
• what you would like to achieve
• your personal and financial information.

Present position

Your reasons for seeking advice

Outline why the client sought advice.

Assessor feedback:

What you would like to achieve

Summarise here what you understand to be your client's main objectives.

Answer here

Assessor feedback:

Your personal and financial information

Listed below is a summary of your relevant personal and financial details that you have provided.

Personal information

Personal details

	Client 1	Client 2
First name(s)	Jessica
Surname	Bigge
Date of birth	15 July 1986
Marital status	Single
Health status
Smoker status	Non-smoker
Employment status	Permanent
Employer name
Occupation	Marketing manager
Annual salary	$70,000

Summarise the discussion points that could/need to be raised here.

Assessor feedback:

Children and dependant details

Your existing insurance

Personal insurance	$50,000 life/TPD inside superannuation
Car insurance	$1,500
Home contents Insurance	$360
Health insurance	$1,320

Your existing estate planning

Summarise the client's existing estate planning provisions here.

Assessor feedback:

Financial information

Current income and expense details

Income and expenses

	Client 1	Client 2	Total
Assessable income	$72,506
Income after tax	$55,901
Yearly expenses	$49,600
Estimated surplus	$6,939

Discussion points:

Summarise the discussion points that could/need to be raised here.

Assessor feedback:

Assets and liabilities

	Value	Liability	Net value
Home
Home contents	20,000
Motor vehicles	39,000	39,000
Personal assets
Employer superannuation	32,000
Savings account	1,000
Term deposit	57,000
Investment assets
Shares	2,070
Net worth	151,070

Discussion points:

Summarise the discussion points that could/need to be raised here.

Assessor feedback:

Incomplete and/or inaccurate information warning

Note that if, for any reason, theinformation on which our advice is based is incomplete or inaccurate,then it may not be appropriate and you should, before acting on theadvice consider its appropriateness, in light of your particularcircumstances, needs and objectives.

Your risk profile

In this section, you need to provide:

• an overview of the different risk profiles
• asset classes and risk and return
• the client's risk profile includingthe appropriate mix of assets (the asset allocation) for the client'srisk profile, the appropriate investment return time horizon for thatprofile and any specific concerns.

Assessor feedback:

Strategy recommendations

This section tells you:

• what our advice is and why it is appropriate for you
• reasons for our recommendations
• what you need to consider and any risks associated with our advice.

Read this section carefully and ask me if you have any questions.

Recommended action - first year

For each recommendation below; discuss the reasons, risks, advantages and disadvantages.

All recommendations should be listed here.They are to include investment and debt management recommendations. Youare not required to provide specific advice to your client about herinsurance, superannuation and estate planning needs. However, if afteranalysis of her situation you believe that advice is required, you needto explain what advice she should seek and why.

Note: Not all of the recommendation boxes below need to be completed. Alternatively, you can add more boxes if required.

Recommendation 1

Assessor feedback:

Recommendation 2

Assessor feedback:

Recommendation 3

Assessor feedback:

Recommendation 4

Assessor feedback:

Recommendation 5

Assessor feedback:

Things you should consider

Assessor feedback:

Insurance

Assessor feedback:

Estate planning

Assessor feedback:

Taxation issues

Assessor feedback:

Recommended asset allocation

Proposed asset allocation

Your investment assets are invested across various asset classes. The table below summarises:

• Weight: The proposed asset allocation resulting from our recommendations.
• Risk profile weight: The recommended asset allocation for your investment risk profile.
• Variance (weight): The variance between the recommended and proposed asset allocation.

Comments on proposed asset allocation versus your risk profile