Financial Planning Trimester essay
All questions are throughout the connected file. This contains phrase counts.ss MAA255 - Monetary Planning Trimester 1, 2021 Evaluation Process three (Particular person) DUE DATE AND TIME: eight:00pm AEST, Monday seventh June 2021 PERCENTAGE OF FINAL GRADE: This evaluation is value a complete of 60% of the general marks. Studying End result Particulars Unit Studying End result (ULO) Graduate Studying End result (GLO) ULO1: Relate theoretical, technical and sensible monetary planning data and expertise to varied consumer situations. GLO1: Self-discipline-specific data capabilities GLO3: Digital literacy ULO2: Establish and study monetary planning choices for a consumer. GLO1: Self-discipline-specific data and capabilities GLO4: Important considering GLO5: Downside fixing Submission Directions This evaluation job is to be accomplished as a person. Group submissions will NOT be accepted. ONE digital copy solely of the evaluation should be submitted through CloudDeakin. Assessments that don't adjust to the submission necessities is not going to be marked. You should hold a backup copy of each evaluation you submit, till the marked evaluation has been returned to you. Within the unlikely occasion that one in all your evaluation is misplaced, you will have to submit your backup copy. Any work you submit could also be checked by digital or different means for the needs of detecting collusion and/or plagiarism. If you find yourself required to submit an evaluation via your CloudDeakin unit website, you'll obtain an e-mail to your Deakin e-mail handle confirming that it has been submitted. It is best to test which you could see your evaluation within the Submissions view of the evaluation dropbox folder after add, and test for, and hold, the e-mail receipt for the submission. Description / Necessities This evaluation comprises THREE (three) TASKS. Every Process has a number of components and all components needs to be answered to be able to obtain the total marks out of 100. Notice that the marks out of 100 will probably be transformed to 60% of your remaining grade. Moreover, there's a hurdle requirement on this evaluation which means that you will want to attain a minimum of 50% or extra to cross this unit. For calculations, I might advocate displaying as many steps as doable in your calculation and dealing. Some steerage and recommendation to make sure the profitable completion of the evaluation: 1) Your responses needs to be written clearly and concisely inside a single phrase doc. 2) The place relevant, state all of your assumptions. three) Your solutions ought to comply with the next minimal format: i. Title Web page which is able to embody formal title; your title and scholar ID quantity; date and unit title and code (MAA255 - Monetary Planning Trimester 1, 2021) ii. Desk of Contents together with headings and subheadings and web page numbers iii. Process 1 – Case Examine: James and Olivia iv. Process 2 – Case Examine: Lucy and Patrick v. Process three – Private Case Examine vi. References (use the Harvard model of referencing). vii. Appendices (elective) four) Most Phrases: 2,000 (excluding Title Web page, Desk of Contents, References, Appendices). Please notice that poor presentation/formatting, going over the general phrase restrict by greater than 10%, or failure to comply with directions might lead to a penalty of marks of as much as 10%. The phrase rely in every part is simply a sign of how lengthy your reply needs to be at most. When you go over or below it's tremendous so long as your general report is throughout the 2,000 most phrase rely (not together with tables and references). Notes • Penalties for late submission: The next marking penalties will apply when you submit an evaluation job after the due date with out an authorized extension: 5% will probably be deducted from accessible marks for every day as much as 5 days, and work that's submitted greater than 5 days after the due date is not going to be marked. You'll obtain zero% for the duty. Day means working day for paper submissions and calendar day for digital submissions. The Unit Chair might refuse to simply accept a late submission the place it's unreasonable or impracticable to evaluate the duty after the due date. • For extra details about tutorial misconduct, particular consideration, extensions, and evaluation suggestions, please discuss with the doc Your rights and tasks as a scholar on this Unit within the first folder subsequent to the Unit Information of the Assets space within the CloudDeakin unit website. Evaluation Suggestions: The outcomes of the ultimate evaluation is not going to be immediately launched and as a substitute you'll know your remaining marks for the unit via the College scholar administration system. College students could make an internet appointment to obtain on-line suggestions on their remaining evaluation. Process 1 – Case Examine: James and Olivia (28 marks) James is aged 42 and Olivia is aged 38. Olivia works a stay-at dwelling mum while James runs his personal consulting agency from an inside suburban workplace, which produces a mean internet revenue of $150,000 earlier than tax. They've two kids, aged eight and 10 whom they count on will stay dependent till age 24 at which era the residing bills will lower by $13,000 p.a. for every youngster after they depart dwelling. They personal their very own home value $1,000,000, which is topic to a mortgage of $275,000. Additionally they personal an funding property value $900,000, which is topic to a mortgage of $650,000. Additionally they have an excellent bank card debt of $12,000. Each James and Olivia personal their very own vehicles. The couple’s residing bills complete $84,000 p.a. together with cost of a $27,600 p.a. annual mortgage cost. The couple want to ship the kids to a non-public college from years 9 – 12 which is anticipated to price $160,000 in complete. In occasion of dying of both James or Olivia, they estimate dying and medical bills to price round $12,000. James presently has life cowl of $150,000 in his superannuation fund (his present superannuation fund steadiness is $225,000) while Olivia has no life cowl, additionally they haven't any different private insurances. James’ father handed away not too long ago at age 67 because of coronary heart illness, which appears to be a hereditary downside in James’ household. Required a) What kind of insurance coverage insurance policies would you advocate for James and Olivia to guard their private dangers? Talk about the deserves for every of the forms of insurance coverage insurance policies. (max. 400 phrases) (eight marks) b) Calculate how a lot further life insurance coverage is likely to be really useful for James? Assume that protection is required via to present life expectancy (85 for females, 81 for males). Additional assume the reinvestment charge is eight% every year. (12 marks) c) You notice that James’ present life cowl is in his superannuation fund. Talk about the benefits and downsides having his life cowl inside his superannuation fund as towards having it in his personal title? (max. 250 phrases) (eight marks) Process 2 – Case Examine: Lucy and Patrick (32 marks) Lucy and Patrick, aged of their early 30’s, personal their very own dwelling value $1,000,000 and every have a automobile value roughly $30,000 every. They've the next funding property: Merchandise Quantity Possession Funding Property $900,000 Tenants-In-Widespread Money at financial institution $200,000 Joint Time period deposit – 2 12 months mounted $15,000 Patrick Shares – Australian, blue-chip shares acquired in 2016 for $20,000 $80,000 Lucy Managed fund – Aust. Shares acquired in 2015 for $15,000 $25,000 Lucy Superannuation (each have binding dying nomination clauses) $300,000 $125,000 Lucy Patrick • The couple’s superannuation accounts are invested in a progress fund with the next allocations: Money 5%; Fastened curiosity 25%; Aust shares 35%, Property 10%; Worldwide shares 25%. • Lucy earns $105,000 p.a. and Patrick earns $50,000 p.a. working part-time. The couple have 2 kids aged 16 and 18 years previous. • The couple’s danger profile has been decided as conservative. Required a) Decide the couple’s general funding asset allocation utilizing the next desk format. Notice that your Excel spreadsheet must be ‘embedded’ into your report. (9 marks) Title of funding Money Fastened curiosity Property Australian shares Worldwide shares Complete Complete - $ Complete - % b) Is the couple’s present asset allocation in step with their danger profile? If not, what could be your options as to an acceptable asset allocation for the couple? When you determined that the couple’s portfolio was obese in a selected asset class, what issues is likely to be encountered in re-balancing? (max. 250 phrases) (eight marks) c) Lucy and Patrick are contemplating buying the ASX listed inventory Xero Restricted (XRO). They discover that Xero has a really excessive price-to-earnings (P/E) ratio relative to different Australian shares akin to Woolworths (WOW). Holding all else equal, does a excessive P/E ratio essentially imply that Xero is a foul funding relative to different shares with decrease P/E ratios? Why, why not? (max. 200 phrases) (9 marks) d) Advise as as to whether the investments are property or non-estate property. Ought to they re-structure such that every one the property are property property? (max. 200 phrases) (6 marks) Process three – Private Case Examine (40 marks) As a potential monetary advisor learning MAA255 Monetary Planning, earlier than you begin developing with monetary plans for others, it is likely to be worthwhile to begin a monetary plan for your self. Thus, on this job you'll tackle the function of each the consumer and the planner and will probably be fascinated by your retirement. When you do make any further assumptions alongside the way in which do state them explicitly. Listed here are some assumptions to begin you off: • A graduate in monetary planning on common, earns about $55,000 a 12 months, you may assume that this quantity is your beginning wage bundle (i.e. it contains the superannuation assure contribution). • Your wage itself is anticipated to extend by 2.5% per 12 months that accounts for will increase as a result of CPI and any promotions all through your lifetime. • You possibly can assume the tax charges to stay fixed, and that inflation (CPI) is 2% every year. • Your superannuation funds are invested in a progress possibility. The expansion possibility is anticipated to generate a internet return of 5.zero% every year (internet of tax and costs) for the foreseeable future. Notice that for every half, your Excel spreadsheet must be ‘embedded’ into your report. See Week 11 lecture recording… Required: a) You purpose at constructing wealth between now and whenever you retire inside your superannuation fund. One among your targets is to retire in your 65th birthday. Put together an Excel spreadsheet displaying the quantity of gathered superannuation for every year via until retirement. It is best to use the desk under as a pattern as an example the buildup of your superannuation fund to retirement. You possibly can assume the tax charges stay fixed and that you simply make no additional contributions or financial savings in direction of retirement. (most 100 phrases). (12 marks) 12 months Age Wage ($) Opening Superannuation Steadiness ($) Superannuation Assure Contributions ($) Contributions Tax (15%) Add Earnings (Internet of tax & charges) Closing Superannuation Steadiness 2021 … 55,000 zero … … … … Process three (continued) b) As a part of your retirement, you want to have preserve a sure high quality of life and also you imagine that you'll require the equal of $60,000 every year in at the moment’s (i.e. earlier than adjusting for inflation) out of your superannuation fund whenever you retire. Based mostly in your reply in Half (a), talk about and justify whether or not your gathered fund is sufficient in your retirement wants. You'll need to finish an Excel spreadsheet illustrating the withdrawal of the gathered superannuation commencing retirement. It is best to use the under column headings in your unfold sheet as an example the discount / steadiness of your retirement funds. No matter whether or not the funds had been or weren’t sufficient to fund your retirement in its entirety, calculate how a lot you would wish on the graduation of your retirement to satisfy your entire retirement wants via to the tip of your anticipated life. (most 100 phrases) (16 marks) 12 months Age Opening Pension steadiness Much less pension withdrawal (actual earnings required) Add internet earnings (Internet of Tax & Charges) Closing Pension steadiness 20xx 65 … … … … c) Talk about two methods you would possibly undertake to assist enhance your monetary state of affairs in retirement. (most 500 phrases) (12 marks) END OF ASSESSMENT three TASKS -research paper writing service