Financial Planning superannuation & insurance

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 Education’s 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 student’s 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&section=2″>What
you need to know section and read the advice in the Study
Guide on preparing your project.

.0/msohtmlclip1/01/clip_image002.jpg”> .0/msohtmlclip1/01/clip_image004.jpg”>

2.

Familiarise yourself with the project
Think about the project questions while reading
your learning materials and completing the activities and review questions.

.0/msohtmlclip1/01/clip_image002.jpg”> .0/msohtmlclip1/01/clip_image004.jpg”>

3.

Answer Sections 1–2: Part F
Ensure that you complete the fact finder and risk
profile templates for Question 2.

.0/msohtmlclip1/01/clip_image002.jpg”> .0/msohtmlclip1/01/clip_image004.jpg”>

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.

.0/msohtmlclip1/01/clip_image002.jpg”> .0/msohtmlclip1/01/clip_image004.jpg”>

5.

Answer Sections 3–5

.0/msohtmlclip1/01/clip_image002.jpg”> .0/msohtmlclip1/01/clip_image004.jpg”>

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.

.0/msohtmlclip1/01/clip_image002.jpg”> .0/msohtmlclip1/01/clip_image004.jpg”>

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 Rebecca’s 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 Rebecca’s salaries exclude
superannuation guarantee (SG) contributions, which are currently paid at 9% per
annum.
Annual expenditure