Assessment 3 Sem2 2020: ACBUS107A – Student Name: _______________ Student Number: ______________ Financial Planning Fundamentals Assessment 3 – Student Response Template Question 1 (8 marks) In...

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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, briefly analysing why that factor is important for providing advice to Marina. > 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.> 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/Super/In-detail/Growing-your-super/Super-contributions---too-much-can-mean-extra-tax/?page=2 > 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.> Tax Calculation 2020/21 Before After 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. > 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.> 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. > 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.> End of questions © TAFE NSW – Higher EducationSemester 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 requirements 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, 2020 Page | 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, 2020 Page | 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, roughly how much she would receive based on her current 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, 2020 Page | 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
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Answered Same DayOct 27, 2021

Answer To: Assessment 3 Sem2 2020: ACBUS107A – Student Name: _______________ Student Number: ______________...

Riddhi answered on Oct 31 2021
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Assessment 3 Sem2 2020: ACBUS107A – Student Name: _______________
Student Number: ______________
Financial Planning Fundamentals
Assessment 3 – Student Response Template
Answer to Question 1 -
    Factor identified
    Why the factor is NB for fin plan advice
    1. Cost of living after retirement
    To understand financial requirement after retirement
    2. Source of income during retirement
    To plan the aged pension receivable and balance requirement
    3. Emergency Fund requirement easy to Cash
    To keep the amount of fund liquid
    4. Type of Investor – risky, non-risky, balanced
    To review the options of investment
Answer to Question 2 -
    Goal
    Achievable/Timeframe/Comments
    1. To maximise aged pension entitlement
    At the time of retirement
    2. Availability of separate emergency fund
    At the time of retirement
    3. Salary sacrifice
    Before retirement during employment
    4.Provision of yearly expenses of $30,000 living
    At the time of retirement
Answer to Question 3 -
As per the latest guidelines from 01st January,2020 the employer is required to pay Super guarantee to the extent of 9.5% of the earnings of the ordinary time. Super guarantee contributions are calculated on ordinary time earnings and OTE are the Employee salary and wages, allowances and do not apply to overtime wages or to casual employee. So, in this case Superannuation Guarantee shall be calculated on Salary of $1,60,000 at the rate of 9.5% which comes to $15,200.
The maximum amount of salary sacrifice by employee shall not exceed the amount of concessional contribution contributed by employee. The cap of concessional contribution shall not include the amount contributed by employer’s other contributions or compulsory employer other contributions. The maximum amount of concessional contribution allowable or that can be paid shall not be more than $25,000 per annum. The contribution of superannuation shall be counted as paid in the year of receipt of super fund towards super contribution. The maximum eligible salary sacrifice assuming her total concessional contribution is $10,000 will be $15,000
Answer to Question 4 -
    Tax Calculation 2020/21
    Before
    After
    Gross Salary/wages
    160,000
    160,000
    Salary Sacrifice
    0
    -9800
    Other income (TD & Savings assumed 1%)
    650
    650
    Other income (Mgd Fund Earnings assumed 2%...
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