Retirement Planning Calculations
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 can assist you in answering the questions in this assignment can be primarily sourced from the Foundations of Financial Planning text and the sample case study. Some data will have to be externally sourced, but the assignment template will clearly indicate where this is necessary. You are expected to analyse the 11 areas covered in the data analysis stage, explained in Topic 2, as well as review the sample case study and sample SOA. Additionally, you will need to weigh up the client’s opinion against your own analysis to determine the important areas that need to be addressed for the client. Although the case study may indicate that the client does not wish to have advice provided about a specific area, you need still to evaluate the situation, provide clear reasons as to why, or why not, review the area, and make referrals to specialists if necessary in the relevant sections of the template. You do not have to provide retirement planning calculations and recommendations. However, you must consider the appropriateness of all the investments held by Jessica. If you recommend any change to her current asset allocation (including those in her superannuation fund), you must explain why this action is appropriate. That is, why there is a need to change the asset allocation, or to replace or sell an investment. With regard to insurance, you are not expected to provide a detailed analysis of Jessica’s needs. However, this area still needs to be examined. If your analysis shows that she requires additional insurance and could benefit from a review, you should advise her of this. Alternatively, clearly explain why you believe 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 question is purely indicative. You may exceed the word count by a minimal amount, however, please do not include additional information which is outside the scope of the question. The Jessica Bigge case study The case study steps you through the financial planning process, from initial contact with Jessica Bigge, to the development and documentation of a financial strategy as an SOA to meet 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 source additional information from other organisations in the financial services industry to find the appropriate product/s to meet Jessica’s requirements, and perhaps to calculate your service fees. Submitting the assignment You must submit your completed assignment in a compatible Microsoft Word document. You need to save and submit this entire document — not just Appendix 2: Financial planning questions (assessment workbook).