An Application of Basic Economics Concepts to Home Ownership and Superannuation Using the following press release as a starting point show how the economics concepts can be applied to a contemporary economics issue. ¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬_________________________________________________________ Harnessing super to realise the Australian dream of home ownership The great Australian dream of home ownership will be unlocked sooner for thousands of first home buyers who will now be able to harness their superannuation to get into the property market. Under the Super Home Buyer Scheme, first home buyers will be able to invest up to 40 per cent of their superannuation, up to a maximum of $50,000 to help with the purchase of their first home. It will mean Australians can buy their first home sooner by slashing the time taken to save a deposit by three years, on average. The scheme will apply to both new and existing homes with the invested amount to be returned to their superannuation fund when the house is sold, including a share of any capital gain. This means that a person’s super is harnessed to purchase a first home while also protecting their long-term savings plan for retirement. Prime Minister Scott Morrison said supporting first home buyers was a key part of the Morrison Government’s Plan. “Our Plan for the future is focused on supporting more Australians to realise their dream of home ownership,” the Prime Minister said. “Super should be harnessed to support the aspiration of many thousands of families who want to buy a home. “Our Plan makes it easier for first home buyers to save for a deposit, reducing the time people need to pay rent, and also means a smaller mortgage with less debt and smaller repayments. “It’s a Plan that gets the balance right – it utilises money that’s currently locked away to transform a family’s life, with the money then responsibly returned to the super fund at the time of home’s sale.” Assistant Treasurer and Minister for Housing Michael Sukkar said the Super Home Buyer Scheme would be a gamechanger for aspirational Australians and provide hope and opportunity to first home buyers. “The Liberal and National Government are fundamentally committed to helping more Australians achieve their dream of home ownership,” Minister Sukkar said. “By allowing people to access their super and buy a house, we are providing the opportunity to turn that dream of home ownership a reality. “Allowing your super to work for you to purchase your first home and then being returned to your super at a later date achieves the best of both worlds – home ownership and retirement security.” Minister for Superannuation Jane Hume said this is a two for one win for Australians – a home and a return on retirement savings. “Under the Super Home Buyer Scheme you keep building your super savings – in the home you live in. When you sell, the amount you invested is returned to your super – plus a share of any capital gain,” Minister Hume said. “It gets the balance right, helping first home buyers break into the market but protecting their retirement savings. “The Liberals know it’s Australians’ money, not the super funds’ and not the governments. Australians work hard to earn it. They work hard to save it. One dollar in $10 of everything they earn is saved in super right now. “Superannuation is there to help Australians in their retirement, and the Super Home Buyer Scheme will ensure Australians can use those savings they are responsibly building up to improve their quality of life now and standard of living in retirement.” The Super Home Buyer Scheme will start by 1 July 2023. There are no income or property caps under the Super Home Buyer Scheme with eligibility restricted to first homebuyers who must have separately saved five per cent of the deposit. Over the last three years, the Morrison Government’s housing policies have supported more than 300,000 Australians into home ownership. Only the Coalition Government has a comprehensive plan to help Australians realise the dream of home ownership. Under the Liberal and Nationals plan, the Home Guarantee Scheme will next year help 50,000 Australians into a home, including 10,000 places for new homes in regional Australia and the First Home Super Saver Scheme is already helping Australians make voluntary savings to put towards their first home. ¬_________________________________________________________ The following economics concepts may be considered in your analyses: • Choice • Good bundles • Budget constraint • Preferences • Supply and Demand • Opportunity Cost • Indifference curves • Consumer equilibrium • Marginal rates of substitution • Axiom • Externalities In your analyses consider, for example, ranking of the importance of these concepts to the present problem, measurement issues associated with the concepts, and intemporal stability or variation with the concepts e.g., preferences, budget constraints. It is not necessary to consider all the economics concepts, but their exclusion needs to be justified. GENERAL REQUIREMENTS: Develop logical and coherent responses to the issues raised above. The opinions or decisions that are presented should be supported by references to appropriate texts, articles, websites, and current economic practices. It is recommended that at least five (5) more articles be reviewed. The following lists of deadline and requirements should be adhered to. Failure to do so will result in a lower grade on the project. SUBMISSION DATE: 17 June 2022 FORMAT REQUIREMENTS: The paper should • be typed and double spaced; • flow as a well documented coherent, committee paper; • cite all sources; • have correct formats for the bibliography, footnotes, and references; • have on the first page of the paper, the title of the paper, the author’s names; and • have an executive summary. Quality is the most appropriate determinant of the grade awarded but it is suggested that approximately 2,000 words be a suitable length.
The Assignment (student to complete) Section 1: Establish the relationship with the client and identify their objectives, needs and financial situation Section 1 Part A — Establish relationship Apart from the initial contact with the Rosenbergs at your retirement seminar, you have met with them twice in order to gather the information you need to assess their situation and provide them with advice. Briefly explain at least five (5) strategies you are likely to use with a client in order to ensure that they are comfortable with you and the interview process. (200 words) Answer here Assessor feedback: Resubmission required? No Section 1 Part B — Adviser obligations Referring directly to yourself and your licensee, explain what an FSG is and why it is necessary. Provide details of the law you must comply with and the information the FSG must contain, including your complaints procedure. (250 words) Answer here Assessor feedback: Resubmission required? No Section 1 Part C — Tax and cash flow Using the information you have gathered from your clients (i.e. the information provided in the case study and fact finder), complete the table below and determine their cash flow position and annual savings capacity. You can assume that the clients have no tax deductions or liabilities other than those stated in the case study or fact finder. Section 1 Table 2 Tax calculation Freddie Sara Combined Comments Income from employment Salary or income from employment Salary sacrifice Salary after salary sacrifice Rental income Unfranked dividends Franked dividends Franking (imputation) credits Interest Other income (e.g. taxable benefits, trust income, investment income) Capital gains 1 yr Capital gains 1 yr Tax-free component of capital gains Assessable income Deductible expenses Donations Income protection insurance Business overheads insurance Other Taxable income Tax on taxable income Non-refundable tax offsets (e.g. LITO/SAPTO/LMITO) Medicare levy Medicare levy surcharge Franking rebate Refundable rebates and offsets Total tax Cash flow Freddie Sara Combined Comment Salary less any salary sacrificed amount Total expenses Total income received before tax less total expenses Total tax payable from tax table above Total net cash flow Assessor feedback: [insert feedback] Date assessed: Click here to enter a date Does the student need to resubmit? No Questions that need to be resubmitted First submission Not yet demonstrated Resubmission Not applicable To pass this subject, you will need to be assessed as DEMONSTRATED for either your first submission or your resubmission. Section 2: Analyse client objectives, needs, financial situation and risk profile to develop appropriate strategies and solutions Section 2 Part A — Gaps in information Identify any gaps in your data collection based on the fact finder in Appendix 1 and the summary of information provided. From the interviews, are there any other issues that would need to be followed up with Freddie and Sara? (100 words) Answer here Assessor feedback: Resubmission required? No Section 2 Part B — Risk profile Identify the Rosenbergs’ likely risk profile based on the information they have provided. Identify any concerns that you may have with their responses compared with the information in the case study. • Suggest questions you could use to clarify the responses. • Justify why you do or do not think that the score and the resulting risk profile category is an accurate reflection of their tolerance to risk, and decide on a profile for each. (250 words) Answer here Assessor feedback: Resubmission required? No Section 2 Part C — Strategies Summarise appropriate retirement strategies for Freddie and Sara. • Consider superannuation and non-superannuation assets and strategies. • Provide a detailed explanation of why you consider these assets and strategies to be appropriate. • Include the lump sum amount that Freddie and Sara will need at retirement to achieve their income goal, and strategies to help them reach that goal. • Provide a summary of other recommendations that you will include in your SOA for Freddie and Sara. (500 words) Answer here Assessor feedback: Resubmission required? No Assessor feedback: [insert feedback] Date assessed: Click here to enter a date Does the student need to resubmit? No Questions that need to be resubmitted First submission Not yet demonstrated Resubmission Not applicable To pass this subject, you will need to be assessed as DEMONSTRATED for either your first submission or your resubmission. Section 3: Address clients’ questions and concerns about superannuation matters Section 3 Part A — Product research Freddie and Sara have stated they are happy with their current superannuation funds. Provide a summary of the type of research you would conduct to ensure the suitability of these funds for the clients’ future retirement needs. (250 words) Answer here Assessor feedback: Resubmission required? No Section 3 Part B — Client queries on superannuation contributions Freddie and Sara have a number of questions about superannuation contributions after the seminar they attended and as a result of their research. Respond to their questions, basing your answer on their personal situation. You may be required to re-educate the clients where they are confused or misunderstand the superannuation rules. Question 1 Freddie is confused about taxation of superannuation contributions. He has friends who write a cheque, send it to their superannuation fund and claim a tax deduction. He asks: Am I correct in assuming that we can both claim personal tax deductions for any superannuation contributions we make? Could you explain the tax deduction rules that apply to our situations, how much can we contribute and when we can start? Answer Freddie’s questions. (250 words) Answer here Assessor feedback: Resubmission required? No Question 2 Sara asks: We read an article recently that said Freddie can split the superannuation contributions he makes to my superannuation account. Is that correct, and if so, how does it work? Answer Sara’s question. (150 words) Answer here Assessor feedback: Resubmission required? No Question 3 Freddie is concerned about tax payable if they invest any of their cash savings into superannuation. He says: I’ve heard that some people have had to pay tax on superannuation contributions at the highest tax rates. How can we be sure we won’t fall into that trap? Answer Freddie’s question. (150 words) Answer here Assessor feedback: Resubmission required? No Section 3 Part C — Client queries on superannuation benefit payments Question 1 Sara asks: When and how can we access our superannuation? Can we get it if we are still working? Explain the rule that applies in their circumstances. Explain when and under what circumstances they will be able to access their superannuation. Assume Sara (53) was born in April 1967 and Freddie (55) was born in May1965. (200 words) Answer here Assessor feedback: Resubmission required? No Question 2 Freddie asks: I understand this may not apply to us, but my older brother is 58 and he told me he pays a bit of tax now when he takes money out of super, but when he turns 60, it will be almost nothing. Why is that? Discuss the situation if the lump sum was taken at retirement after age 60 and just before age 60. Include a brief explanation of components of a lump sum, how they are taxed and any other matters relating to them? (200 words) Answer here Assessor feedback: Resubmission required? No Question 3 Sara asks: Tell us more about these income stream options we would have in retirement. How do they work? When can we start one? What are the rules that apply and how much tax do we pay? Discuss this in broad terms and explain the situation immediately before and after reaching age 60. Assume Sara and Freddie will continue to work until age 65 and then retire. (300 words) Answer here Assessor feedback: Resubmission required? No Assessor feedback: [insert feedback] Date assessed: Click here to enter a date Does the student need to resubmit? No Questions that need to be resubmitted First submission Not yet demonstrated Resubmission Not applicable To pass this subject, you will need to be assessed as DEMONSTRATED for either your first submission or your resubmission. Section 4: Present appropriate strategies and solutions to the client and negotiate a financial plan, policy or transaction. Provide ongoing service where requested by the client You must now prepare an SOA based on the recommendations made, which will be used to record this advice (including amendments, if any) for Freddie and Sara. Remember that the SOA must be of a standard that is compliant and would be suitable to present to a client. Important instructions • What to submit: You have been provided with cash flow templates to use for the assignment SOA. Please include them with your submission. • Template SOAs and SOA preparation software: Do not use the sample SOA published by ASIC as a basis for your submission. The use of financial planning software and dealer templates to prepare your SOA is also not permitted. Submissions that exhibit excessive reliance on SOA templates may be considered to be plagiarism or collaboration, and may not be considered to be a reasonable attempt at the assignment. • Assumptions: You must list the assumptions used in your SOA in your assignment submission. These will generally include: – any assumptions you have made regarding missing background information on the clients – any assumptions you have used to calculate future income from your recommended investments – any assumptions used for fees and premiums relating to the products you have recommended. • Strategy advice: You must provide specific strategy recommendations in the following areas based on the information given: – wealth creation strategies to meet retirement needs – personal investments – strategies using superannuation – asset allocation. Use the information on each of these areas given in the subject notes to provide reasons for each of the strategies recommended. • Product advice: Specific product recommendations are not required; however, you do need to make and justify any recommendations of the type of product(s) selected for the client’s consideration. You have been told the clients are happy with their current superannuation funds and do not require any specific advice on their current personal insurance arrangements. However, it is expected that you will provide in the ‘Things to consider section’ of the SOA, appropriate comments about any issues you have identified with these areas and their future estate planning needs. • Cash flow projections: You must include detailed cash flow tables using Appendices 1 and 2 as a template, showing Sara and Freddie’s situation before and after your recommendations. These should be included as Appendices 1 and 2 to your SOA. • Recommendations: You should include superannuation projections up to the retirement age of your clients before and after your recommendations as Appendix C to your SOA. In addition, please show that your strategy will enable your clients to meet their retirement income goal for 21 years (based on Freddie living to age 86 and Sara to age 84). The SOA template An SOA has been commenced for Freddie and Sara Rosenberg, using the data collected in the interviews, their fact finder and their risk profile. You must complete the remaining sections in the SOA as directed. The SOA starts on the following page. Please review the sample case study and the text as a guide to completing your SOA. Statement of advice Prepared for Freddie and Sara Rosenberg Prepared by Your name Authorised Representative Number: 66666 AR address AR contact details Authorised Representative of EANWB Financial Planning ABN: 1010101010 Australian Financial Services Licensee Licence No. 101010 Head office: 88 Money Lane, Accumulation. You are entitled to receive a statement of advice (SOA) whenever we provide you with any personal financial advice. Personal financial advice is advice that takes into account any one or more of your objectives, financial situation and needs. This SOA is a record of the personal financial advice provided to you and includes information on the basis on which this advice is given, information about fees and commissions and any interests or associations which might influence the advice. If this advice includes a recommendation to you to acquire a particular financial product, other than securities, or an offer to issue or arrange the issue of a financial product to you, we will also provide you with a product disclosure statement containing information about the particular product to help you make an informed decision about that product. Be aware that the advice contained in the following SOA is valid for a period of 30 days only. If the plan is not implemented within this time, it will need to be reviewed for accuracy. Executive summary In this section, you need to provide your client with a concise summary of: • their situation • their objectives • your recommended strategy to achieve the objectives • the outcomes your client can expect from adopting the strategy. The client should be able to read this executive summary and understand the advice you are giving and the reason/s underpinning the advice, and be able to determine whether or not their goals have been achieved. There should be sufficient detail to allow the client to make a decision, taking into account any risk/s involved and your fees. It should be written without using jargon and in clear, unambiguous language, and be appropriate to their level of financial understanding. Your situation Summarise your clients’ current situation. Provide a brief statement about their family, employment, health, asset and debt position. (150 words) Answer here Assessor feedback: Resubmission required? No Your objectives List your clients’ objectives (i.e. their financial and non-financial goals, objectives and needs). Freddie and Sara expressed a desire to address their immediate needs and medium and long-term objectives. Summarise these in point form for Freddie and Sara to confirm. (100 words) Answer here Assessor feedback: Resubmission required? No Summary of our strategy and recommendations For the short term — up to one year Summarise your recommendations for your clients’ short-term goals. Present the strategies in point form to provide a quick picture of your intentions. Answer here Assessor feedback: Resubmission required? No For the medium term — two to five years Summarise your recommendations for your clients’ medium-term goals. Include strategies that cannot be considered immediately or require monitoring. Answer here Assessor feedback: Resubmission required? No For the long term — more than five years This is where you need to summarise your recommendations for your clients’ long-term goals. Answer here Assessor feedback: Resubmission required? No Summary of expected outcomes if you implement our advice For example: Should you proceed with the recommendations contained within this report, we estimate that: • You will reduce your debt by $XYZ and/or save $ABC. • You will build wealth in non-superannuation assets to $Y through regular contribution of $X. • Your objective of yyy will be achieved by… • Align the outcomes with the objectives. Answer here Assessor feedback: Resubmission required? No Risks in our advice Identify both financial and non-financial risks that can impact the desired outcome. Refer to the sample SOA for examples of relevant descriptions that should be included here and under each subheading below. Include risks that are specific to your strategies. Answer here Assessor feedback: Resubmission required? No Summary of our fees and commissions Answer here Assessor feedback: Resubmission required? No Your next steps Refer to the sample SOA for examples of relevant descriptions that should be included here. Answer here Assessor feedback: Resubmission required? No Body While this section contains similar headings as the executive summary, the information provided is more detailed and supports the recommendations made. As with the executive summary, it should be written without using jargon and in clear, unambiguous language, and be appropriate to your client’s level of financial understanding. Important information about you This section contains information about you that we used in preparing our advice, such as: • your reasons for seeking advice • what you would like to achieve • your personal and financial information. Present position Your reasons for seeking advice Outline why the clients sought advice. Answer here Assessor feedback: Resubmission required? No What you would like to achieve Summarise here what you understand to be your clients’ main objectives. Following our discussions, here is what I understand to be your main objectives and needs: Answer here Assessor feedback: Resubmission required? No Your personal and financial information Listed below is a summary of your relevant personal and financial details that you have provided. Personal information Personal details Fill the gaps Client 1 Client 2 First name(s) Freddie Sara Surname Rosenberg Rosenberg Age Marital status Married Married Health status Smoker status Non-smoker Non-smoker Employment status Permanent Part-time Employer name Occupation Sales representative Marketing consultant Annual salary $120,000 $90,000 Summarise the discussion points that could/need to be raised here. Answer here Assessor feedback: Resubmission required? No Children and dependant details Answer here Your existing insurance Fill any gaps. Personal insurance Answer here Car insurance Answer here Home contents Insurance Answer here Health insurance Answer here Your existing estate planning Summarise the clients’ existing estate planning provisions here. Answer here Assessor feedback: Resubmission required? No Financial information Current income and expenses details Income and expenses Complete the table: Freddie Sara Total Assessable income Answer here Answer here Answer here Net tax payable Answer here Answer here Answer here Yearly expenses Answer here Answer here Answer here Estimated surplus Answer here Answer here Answer here Discussion points: From the table you have prepared and your cash flow analysis, identify questions you will need to ask about their income, lifestyle, expenses and intentions, before you start preparing your strategies. What are the gaps? (100 words) Answer here Assessor feedback: Resubmission required? No Assets and liabilities Complete the table: Value Liability Net value Home Answer here Answer here Answer here Home contents Answer here Answer here Answer here Motor vehicles Answer here Answer here Answer here Personal assets Employer superannuation — Freddie Answer here Answer here Answer here Employer superannuation — Sara Answer here Answer here Answer here Savings account Answer here Answer here Answer here Investment assets Answer here Answer here Answer here Net worth Answer here Answer here Answer here Discussion points: Prepare discussion points you will use to obtain a better understanding about how your clients see their situation and future. What are their attitudes to debt, personal assets, investments and superannuation assets that can assist you with your advice? What are the gaps? (100 words) Answer here Assessor feedback: Resubmission required? No Incomplete and/or inaccurate information warning Note that if, for any reason, the information on which our advice is based is incomplete or inaccurate, then it may not be appropriate. Before acting on the advice, you should consider its appropriateness in light of your particular circumstances, needs and objectives. Your risk profile In this section, you need to provide: • an overview of the different risk profiles • the risk/return characteristics of various asset classes • the client’s risk profile including the appropriate mix of assets (the asset allocation) for the client’s risk profile, the appropriate investment return time horizon for that profile and any specific concerns. Discuss their attitudes to investing and any other experience or interests that can support your assessment. Answer here Assessor feedback: Resubmission required? No Strategy recommendations This section tells you: • what our advice is and why it is appropriate for you • reasons for our recommendations • what you need to consider and any risks associated with our advice. Read this section carefully and ask me if you have any questions. Recommended action — first year You will use your findings from the analysis you did in the assignment above as the basis for the information you will need to provide in this section. For each recommendation below discuss the reasons, risks, advantages and disadvantages. All recommendations should be listed here. They are to include investment and debt management recommendations. You are not required to provide specific advice to your client about their estate planning needs. However, if after analysis of their situation you believe that advice is required, you need to explain what advice they should seek and why. Concept. If you use technical terms or concepts in your discussion explain what the terms mean. For example, do not assume they know what ‘gearing’ or ‘franking’ means Note: You do not have to complete all of the recommendation boxes below. You can add more boxes if required. Recommendation 1 Answer here Assessor feedback: Resubmission required? No Recommendation 2 Answer here Assessor feedback: Resubmission required? No Recommendation 3 Answer here Assessor feedback: Resubmission required? No Recommendation 4 Answer here Assessor feedback: Resubmission required? No Things you should consider In this section briefly discuss strategies that you did not recommend that could be considered at another time and how they could benefit the clients. Refer to the sample SOA for examples of relevant descriptions that should be included here and under each subheading below. Answer here Assessor feedback: Resubmission required? No Retirement planning Briefly state what has been achieved with your strategies and highlight what still needs to be addressed or reviewed. Answer here Assessor feedback: Resubmission required? No Estate planning You have recorded the clients’ estate planning details for completeness of information gathered in the fact finder. You have explained that you cannot provide legal advice. However, if you see deficiencies in their current structure, discuss them briefly and suggest a course of action. (100 words) Answer here Assessor feedback: Resubmission required? No Taxation issues My strategies and recommendations have had the following impact on your tax position: Answer here Assessor feedback: Resubmission required? No Recommended asset allocation Proposed asset allocation Your investment assets are invested across various asset classes. The table below summarises: • weight: the proposed asset allocation resulting from our recommendations • risk profile weight: the recommended asset allocation for your investment risk profile • variance (weight): the variance between the recommended and proposed asset allocation. Asset allocation after implementation of recommendations Asset allocation Weight Risk profile weight Variance (weight) Defensive assets Australian cash Answer here Answer here Answer here Australian fixed interest Answer here Answer here Answer here International fixed interest Answer here Answer here Answer here Total for defensive assets Answer here Answer here Answer here Growth assets Australian equities Answer here Answer here Answer here Australian property Answer here Answer here Answer here International equities Answer here Answer here Answer here International property Answer here Answer here Answer here Total for growth assets Answer here Answer here Answer here Grand total Answer here Answer here Answer here Comments on proposed asset allocation versus your risk profile You need to explain the reason for any large (greater than 10%) variances here. Refer to the sample SOA for a discussion on variances. Discuss how the situation will change over time. Answer here Assessor feedback: Resubmission required? No Investment product recommendations Product recommendations Note that I can only recommend products on our recommended list, which has been approved by EANWB Financial Planning. Use the space below to list the products that you are recommending Freddie and Sara invest in and those that they already have that you recommend they keep. Freddie and Sara Rosenberg, following our investment strategy, we recommend that you invest in the following products: Answer here Assessor feedback: Resubmission required? No Relevant research material and product disclosure statements (PDSs) are attached for your attention. It is important that you read these documents carefully and contact us if you have any questions or if there are areas of the document that you do not fully understand. All of these products are on our approved recommended list. Note: You do not need to include these PDSs as part of your assignment. The above statement is a standard inclusion in an SOA. Cooling-off period Details on the cooling-off period for each product are provided in the PDS. Disclosure of remuneration, commissions and other benefits How are we paid? Commissions and fees — upfront, ongoing and financial planning advice fees If you are charging SOA preparation fees, implementation fees, ongoing advice fees, or any other non product related fees, you must provide the details here. You may need to source information outside of the subject notes to complete this requirement. However, you can use the examples of how fees are shared between advisers and licensees from the sample SOA if needed. If you are not charging these fees you may either delete the table below or fill it in with $0 as the fee charged to make it clear. Fee type Initial fee Initial fee paid to licensee Initial fee paid to adviser SOA fee Answer here Answer here Answer here Implementation fee Answer here Answer here Answer here Ongoing advice fee* Answer here Answer here Answer here Total Answer here Answer here Answer here *If the ongoing service fee is charged as a percentage of the product(s), you may use the table below instead. If you are charging a flat fee or an hourly fee you should use this table. Investment recommendations Summarise all of the products that you have recommended to the client here. Refer to the sample SOA for examples of what to include. You will need to source information outside of the subject notes to complete this table, based on the products you have used (or created). Assessor feedback: Resubmission required? No If you wish to implement the products I have recommended, there may be initial and ongoing fees applicable as detailed below. Product Initial fee Initial fee paid to licensee Initial fee paid to adviser Ongoing fees paid to licensee Ongoing fees paid to adviser Answer here Answer here Answer here Answer here Answer here Answer here Answer here Answer here Answer here Answer here Answer here Answer here Total Answer here Answer here Answer here Answer here Answer here Note: Please see the sample SOA for directions on completing the answers in the paragraphs below. Product providers will also charge a fee for the management of the funds invested in their products. The annual management fee charged by Answer here is Answer here%. The amount you will be charged will depend on the funds you have invested. For example, $ Answer here invested with them will incur a $Answer here annual management cost. Commissions Our policy on taking commissions from product and service providers is summarised below: Answer here Assessor feedback: Resubmission required? No Other fees and benefits EANWB Financial Planning and I may also receive additional benefits. Where the benefits received are greater than $300 in value, they will be recorded in a register that meets the requirements of the Financial Planning Association (FPA) Code of Professional Practice on alternative forms of remuneration. A copy of the register for EANWB Financial Planning is publicly available and can be provided on your request. Ongoing services You need to make sure that your client fully understands what you are offering in terms of ongoing service. Draft an outline of the level of ongoing service you intend to recommend to Freddie and Sara. In your outline, discuss the type of information that you would regularly provide to Freddie and Sara in relation to their financial planning needs. (250 words) Refer to the sample SOA for the sorts of services you could include here. Answer here Assessor feedback: Resubmission required? No Ongoing service fee What would you do to ensure that Freddie and Sara know the specific costs relating to an ongoing service? (100 words) Answer here Assessor feedback: Resubmission required? No Implementation schedule In order to ensure that your recommendations will be implemented efficiently, you need to ensure that all tasks that need to be completed by both you and the clients are itemised in the schedule. The schedule should highlight the priority of each task, as well as the order of completion. The time frame should be as specific as possible. Freddie and Sara Rosenberg, in order to proceed with our recommendations, you will need to complete the steps below: Action By whom By when Answer here Answer here Answer here Answer here Answer here Answer here Answer here Answer here Answer here Answer here Answer here Answer here Answer here Answer here Answer here Answer here Answer here Answer here Answer here Answer here Answer here Answer here Answer here Answer here Answer here Answer here Answer here Note: The recommendations contained in this SOA are current for 30 days only. Please contact me for further discussion if you are unable to act on our recommendation within this time frame. Assessor feedback: Resubmission required? No Authority to proceed By signing this authority to proceed, I/we Freddie and Sara Rosenberg acknowledge the following: • I/We acknowledge that the information I/we provided in the financial needs analysis has been used to arrive at the recommendations contained in this SOA. • I/We have read, understood and retained a copy of the SOA prepared by Your name dated Date . This document contains information which accurately summarises my/our current situation, investments and financial objectives. • I/We have been provided with an EANWB Financial Planning FSG. • I/We have read and understood the PDSs for the recommended products. • I/We acknowledge that the product(s) listed in the table below are to be implemented in my/our name/s: Product(s) Amount Answer here Answer here Answer here Answer here Answer here Answer here • I/We wish to make the following change/s to the recommendations within the SOA: Product(s) Amount Answer here Answer here Answer here Answer here Answer here Answer here Signed Date / / Client Name Signed Date / / Client Name Signed Date / / Financial Adviser Please note that a cooling-off period may apply to your initial investment or insurance policy. Refer to the PDS. Consent to ongoing contact I/We consent to being contacted by our adviser on an ongoing basis, in line with the agreed ongoing service review structure detailed within this recommendation. My/our preferred hours of contact are between __ an
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