Capstone project risk protection and superannuation
FP4-1SN4-1 project
Project cover sheet
This document includes:
· student identification
· project declaration
· project instructions
· submission instructions
· project result, result summary and feedback
· project checklist
· project questions (including fact finder templates, cash flow templates and managed funds calculations).
Student identification (student to complete)
Please complete the fields shaded grey.
Student number
Student name
Telephone number
Project declaration (student to complete)
You must read and acknowledge this declaration:
DECLARATION: The project that I have attached and submitted is my own work, completed in person by me. I understand that I am not to give my completed project (or provide a copy of my project) to any person or organisation other than Kaplan Education Pty Ltd. I also understand the definition of the terms collusion and plagiarism and that penalties apply for collusion and/or plagiarism as stated in Kaplan Educations Assessment Policy and Student Misconduct Policy. The policy is available at:
<.kaplanprofessional.edu.au/">www.kaplanprofessional.edu.au> ” What you need to know ” Policies
I have read and acknowledged the declaration above:
This box must be marked for your project to be accepted for marking. By indicating yes, you agree to the declaration stated above.
Project preparation instructions
Only Microsoft Office compatible projects submitted in the template file will be accepted for marking by Kaplan Professional Education (KPE). PDF projects will not be accepted. Do not delete/remove any sections of the template.
The project must be COMPLETED before submitting it to KPE. The maximum file size is 5MB. Once you submit your project for marking you will be unable to make any further changes to it.
You will have 12 weeks from the date of your enrolment in this subject to submit your project. Should your project be deemed not yet competent you will be give an additional 4 weeks to resubmit your project.
Your project must be submitted to KPE on or before your project due date.
Please check KapLearn for the due date.
Project submission instructions
Please refer to the Project submission instructions (pdf) in the Assessment section of KapLearn for details on how to submit your project.
Note: Assessors should double-click on the fields below to select the students result.
Project result (assessor to complete)
Result first submission
Questions that must be re-submitted:
Sections 2, 3 and 4
Result re-submission (if applicable)
Result summary (assessor to complete)
First submission
Re-submission (if required)
Section 1
Section 2
Section 3
Section 4
Section 5
Feedback (assessor to complete)
Please refer to your assignment document for comments. You are required to amend your paper in accordance with each comment provided for the sections that require resubmission.
Capstone project risk protection and superannuation
FP4-1SN4-1 project
This project contains five sections based on the information provided on your clients, George and Rebecca Brown, and their family. Complete all sections.
The following checklist is provided as a guide to ensure you have completed the project requirements.
Project checklist (student to complete)
Step
Action
Completed?
1.
Read the Study Guide
Go to the .kaplearn.edu.au/course/view.php?id=21§ion=2″>What you need to know section and read the advice in the Study Guide on preparing your project.
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2.
Familiarise yourself with the project
Think about the project questions while reading your learning materials and completing the activities and review questions.
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3.
Answer Sections 12: Part F
Ensure that you complete the fact finder and risk profile templates for Question 2.
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4.
Answer Section 2: Part G Statement of Advice
Follow the steps given in the Statement of Advice Preparation Checklist you must submit the completed checklist
Use the family cash flow templates provided
Use an excel spreadsheet to prepare SOA Appendix 3.
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5.
Answer Sections 35
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6.
Upload your completed project
You must submit the following completed items in this template:
the project cover sheet and completed student declaration
answers to all five project sections
the completed Statement of Advice Preparation Checklist
the completed Statement of Advice and appendices.
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Case study background George and Rebecca Brown
You work for the financial planning company, Markson and Co, which is a licensed securities dealer and a registered life insurance broker.
Your company specialises in investment and insurance advice but does not provide stockbroking, real estate evaluations and advice, income tax preparation, superannuation fund accounting, superannuation fund administration or the preparation of legal documents such as Wills or trusts.
George Brown is a senior engineer with an international mining company. He has been working for the same company for the last seven years and has been pleased that the company was primarily unaffected by the global financial crisis (GFC). He believes there is potential for further improvement in his salary as well as growth prospects within the company.
Rebecca Brown is working part-time as a paralegal with the same company she worked for prior to having their children, Ruby and Sienna. She has a good relationship with the owners of the firm and does not see any change in her current employment situation for the time being.
Both George and Rebecca are in good health and are non-smokers. They have private health cover for the family.
George and Rebecca have approached you for financial advice.
They advise you that they are confused in regard to their financial situation. This has come about due to conflicting information they have read, which states that although they will be living longer, nearly half of all 40 year olds will die over the next forty years. Further, their children have asked questions about the insurance plan advertisements they have seen on television which has raised concerns as to whether they have adequate insurance cover. Further, they want to make sure their children will be adequately provided for if something were to happen to them.
They also believe they should have surplus income as a back-up. They would like to save any surplus in the most tax effective vehicle for the long term. Both George and Rebecca are concerned that if they have access to these funds they may spend them.
George and Rebecca would like to reduce their mortgage and believe that this could help them to get ahead before they have to pay large school fees. Their current loan has a redraw facility. However; they enjoy their annual holidays and have an active social life, and want to make sure they have income available to continue these activities.
George also advised you that his uncle recently passed away and he has inherited $75,000 cash along with shares valued at $27,000. They have never considered owning shares before but George is keen to understand the share market and perhaps buy some shares. George is prepared to take some risks in order to accumulate wealth quickly. However, Rebecca is more concerned about risk and does not wish to gamble any of their funds.
Detailed below are George and Rebeccas current details.
Personal information
Surname:
Brown
Brown
Christian Name:
George
Rebecca
Salutation
Mr
Ms
Age/Date of birth
28 March 1970
17 August 1971
Status
Married
Married
Home address
4 Pringle Ave, Kensington
4 Pringle Ave, Kensington
Health
Good
Good
Smoker
No
No
Occupation
Senior Engineer
Paralegal
Employer
Knight & Co.
Ranier and Jackson
Start date
2004
2008
Sick leave currently available
14 days plus 10 days per annum
6 days plus 10 days per annum
Retirement age
60
59
Dependants/Family relationships
Sienna (aged 11 years)
Ruby ( aged 8 years)
Professional relationships
Solicitor
Carlie Mattieson
Time span of relationship
10 years
Quality of relationship
Poor
Service provided
Conveyancing for home purchase
Accountant
John Watson
Time span of relationship
7 years
Quality of relationship
Excellent
Service provided
Annual tax return
Annual income details
Name:
George
Rebecca
Salary
$110,000
$55,000
Cash management account interest
$375
$375
Savings account interest
$88
$88
Inheritance interest
$3,750
Dividends (96.7% franked)
$1,750
Notes:
George and Rebeccas salaries exclude superannuation guarantee (SG) contributions, which are currently paid at 9% per annum.
Annual expenditure