Assessment 3 Sem2 2020: ACBUS107A – Student Name: _______________
Student Number: ______________
Financial Planning Fundamentals
Assessment 3 – Student Response Template
Question 1 (8 marks)
In relation to the details provided above, there are several factors that you, as a financial adviser, need to ascertain in further detail in order to provide recommendations to Marina. Identify at least 4 of these factors and for each of these,
iefly analysing why that factor is important for providing advice to Marina.
Type your answer in the box
Factor identified
Why the factor is NB for fin plan advice
1.
2.
3.
4.
Question 2 (8 marks)
Identify at least four (4) S.M.A.R.T. goals and objectives, including any you may have identified for Marina. In your answer, state whether each goal is achievable and/or a timeframe to execute the goal, and any relevant comments about the goal.
Type your answer in the box
Goal
Achievable/Timeframe/Comments
1.
2.
3.
4.
Question 3 (6 marks)
How much superannuation guarantee will be paid for Marina and how much would Marina be eligible to salary sacrifice into super in the 20/21 financial year assuming she had total concessional contributions of $10,000 in the 2018/19 and 2019/20 Financial Years? (6 marks)
Read the following to assist you with your answer:
https:
www.ato.gov.au/Individuals/Supe
In-detail/Growing-your-supe
Super-contributions---too-much-can-mean-extra-tax/?page=2
Type your answer here
Question 4 (5 marks)
You have been given the tax calculation for Marina for 20/21 FY, before a possible salary sacrifice strategy (Before Column).
Calculate Marinas tax assuming she undertake a salary sacrifice strategy (assuming the maximum allowable salary sacrifice from Q2) to determine how much tax she will save and what additional savings capacity she will have. Use the 2020/2021 tax rates provided in the Resources and include calculations/notes below the table.
Type your answer in the box and below the box
Tax Calculation 2020/21
Before
Afte
Gross Salary/wages
160,000
160,000
Salary Sacrifice
0
Other income (TD & Savings assumed 1%)
650
Other income (Mgd Fund Earnings assumed 2% unfranked)
1000
Assessable income
161,650
Tax Deductions
-500
Taxable income
161,150
Income tax1
47,305
Medicare
3,223
Medicare Levy Surcharge (if applicable)
0
Total PAYG tax liability2
50,528
Net income after tax
111,122
Estimated Living Expenses
60,000
60,000
Net Savings Capacity
51,122
Total Tax Liability (inc super tax)3
50,528
Tax Saving in Salary Sacrifice strategy
0
1. Before = $161,150 - $90,000 = $71,150 x 37% = $26,326 + $20,797 = $47,305
After =
2. Before total tax liab of $47,305+ $3,223MC = $50,528
After =
3. Super cont tax* =
Question 5 (10 marks)
Marina would like to understand if she is likely to be eligible for the Aged Pension when she reaches the eligible age. Calculate an estimate of what she would likely receive per annum today using the Age Pension data provided in the Resources and the following assumptions:
· Marina has reached Age Pension age
· Her superannuation balance has increased by another $50,000
· The valuations on her other assets have not changed.
Type your answer here
Question 6 (10 marks)
Once retired, assuming her existing investments are as estimated in Q5 and she receives the amount of Aged pension you calculated in Q5, discuss how can Marina can generate the balance of her desired income from her superannuation investment. In your discussion, include reference to:
*approximately how much Marina would need to earn/drawdown to reach her desired retirement income,
* suitable investment product that can be used (both superannuation products and products/investments she could access if she took her money out of super)
* any tax implications of these products.
* the minimum and maximum amounts she may be able to access, and how, if she keeps the funds in the superannuation environment.
Type your answer here
Question 7 (4 marks)
Suggest at least 4 strategies Marina could employ to increase her Age Pension entitlement and whether there are any risks in her using these strategies.
Type your answer here
Question 8 (4 marks)
As an alternative to maximising the Age Pension, what other strategies could Marina undertake to improve her retirement position over the next 2 years before retirement. Consider Marinas goals (including those you may have identified); her savings capacity and any limits (even if Marina does not have the funds to hit these limits) in the possible strategies.
Type your answer here
End of questions
© TAFE NSW – Higher Education Semester X, YYYY
© TAFENSW– Higher Education Page | 31
Assessment 3- Case Study Questions
Subject Code: ACBUS107A
Subject Name: Financial Planning Fundamentals
Course Name: Diploma/Bachelor of Applied Commerce
Semester 2 2020 – 10/10/2020
Assessment 3 Task Outline: ACBUS107A – Financial Planning Fundamentals
© TAFE NSW – Higher Education Semester 2, 2020 Page 2 of 11
3. Assessment
The table below summarises assessment requirements for this subject. Further details about assessment
equirements including submission requirements and grading criteria are provided in the Additional
Information section of this Subject Guide as well as on the subject Moodle.
Assessment Event Due Date
Learning
Outcomes
Assessed
Weighting
1. Role Play
Week 6
1, 2, 3 25%
2. Strategy Discussion Report
Beginning
Week 10
2, 3, 4 30%
3. Case Study Questions Week 12
(Due 11.59pm
Sun 1 November)
1,2, 3, 4
25%
4. Final Exam
Week 14/15
1, 2, 3, 4
20%
Assessment 3 Task Outline: ACBUS107A – Financial Planning Fundamentals
© TAFENSW– Higher Education Sem 2, XXXXXXXXXXPage | 3
Assessment Event 3 –Case Study
Weighting: 25% Learning Outcomes: 1, 2, 3, 4
Graduate Attribute: 1, 3, 5, 7 Due date: Part A End Week 12 – weighting 25%
Part A – Case Study will consist of a Case Study with short answer questions and problem based questions
and extended responses. Students will be required to use their knowledge gained during the semester to
identify issues in the problems set and to provide realistic solutions to these problems.
Due - due on Sunday 1 Nov at 11.59pm via the Turnitin link on the Moodle.
Task Outline – Read the Case Study below. Using the Word template in the Moodle, answer the
questions 1-8. Make sure you have put your Student Name and Number in the header of the template.
Submit your completed answers via the Turnitin link in the Moodle by the due date.
Assessment 3 Task Outline: ACBUS107A – Financial Planning Fundamentals
© TAFENSW– Higher Education Sem 2, XXXXXXXXXXPage | 4
Assessment 3 – Case Study Questions
Resources can be found at end of questions.
CASE STUDY - 55 marks
Due – Sun 1 Nov, 11.59pm
Marina, a widow was born 1 Aug 1955 and is planning on retirement in early 2023 when she
thinks she will be eligible for the Aged Pension. She has one daughter aged 35 who is not
dependent on her. She would like to know if she will in fact be eligible for this pension and if so,
oughly how much she would receive based on her cu
ent assets. Marina has an inherited
health issue and feels she is unlikely to live beyond her late 70’s. While she has Private Health
Insurance now, she is not sure whether it is worth keeping. She has about $250,000 in her
superannuation fund and is thinking she would like to increase the amount in superannuation so
that she could draw down a superannuation pension to top up any Aged Pension she is eligible
for when she retires. While her employer is making Superannuation Guarantee contributions to
her superannuation, Marina has been thinking of salary sacrificing up to the maximum amount
or putting some money from her bank account into super and has come to you for advice on
this and her upcoming retirement plans – she is happy to work on today’s figures knowing they
will change. She would also like to discuss any strategies she can use to maximise her Aged
Pension entitlement while ensuring she lives comfortably and/or any investment strategies to
give her a better retirement.
Marina recently signed a new employment contract that will pay her $160,000 per annum (p.a.)
(excluding superannuation) for the next few years, she receives $650 p.a. from interest income
from her savings and also receives $1,000 unfranked income p.a. from the investments in her
managed fund (non-super).
She has personal tax deductions of approximately $500 p.a., living expenses of approximately
$60,000 p.a. and a credit card debt of $12,000 from an overseas trip she undertook. She
anticipates she will be able to comfortably live on around $30,000 per annum once she retires.
Assessment 3 Task Outline: ACBUS107A – Financial Planning Fundamentals
© TAFENSW– Higher Education Sem 2, XXXXXXXXXXPage | 5
Marina has the following assets & liabilities:
Principal residence (no mortgage) $700,000
Home contents (market value) $10,000
Superannuation balance $250,000
Car (purchase price 2020) $20,000
Credit Card ($12,000)
Managed Fund – (assume 2% income unfranked) $50,000
Term Deposit (assume 1% income) $50,000
Savings Account (assume 1% income) $15,000
Marina considers herself to be a Balanced/Growth Investor, having previously invested in share
funds for a long time and taken interest in her superannuation investments, but would like to
keep approximately $50,000 in cash type investments as a backup/emergency fund.
Question 1 (8 marks)
In relation to the details provided above, there are several factors that you, as a financial
adviser, need to ascertain in further detail in order to provide recommendations to
Marina. Identify at least 4 of these factors and for