Hi there

This is my major assignment and its due in next 12 hours. obtaining high distinction is very important to me and the Harvard style referencing is the most.

Thanks in advance

BFA204assignment RWC2016 UNIVERSITY OF TASMANIA Tasmanian School of Business and Economics Financial Planning BFA204 Semester 2 2016 ASSIGNMENT: Due Date: No later than 2 pm on 12th September2016 Assessment: 22% This Assignment is designed to familiarise you with the work undertaken by financial planners in relation to the important 'key areas' of the financial planning process, risk/diversification and budget/investment decisions including analysing different product categories. The assignment will allow you to become familiar with the financial planning process that applies in these areas. ___________________ Required: In your answer you should consider the following: 1. Ensure that you answer all the requirements of each question. 2. On campus students only: Please note new submission rules and submit on MyLO plus a hardcopy to be submitted to the drop box at L3 in the TSBE building. 3. This assignment consists of THREE (3) questions of unequal weight. 1 BFA204assignment RWC2016 Question 1 Jarryd works with the local council as a parks services manager. He is aged 42, married with two young children and earns a salary of $75,000 p.a. Jarryd's wife is not currently employed. Jarryd would like to start investing into quality investments outside of his superannuation account to fund his children's education, to pay for a home extension that will be required in the next few years as the children get older, and to put some money aside to support his retirement. Jarryd believes he has a moderate risk profile. He has little investment experience and is busy with his job and family .He does not have much of an interest in managing his finances. He is prepared to take on some risk in order to chase higher returns but would not want to borrow or invest into high risk products. He owns a few shares in the Commonwealth Bank and has $10,000 in a cash account. Jarryd will shortly inherit a sound investment portfolio from his grandmother consisting of $30,000 cash and $40,000 in three managed funds as follows: Australian Share Index Fund $20,000 (MER 2.5%) Australian Bond Fund $10,000 (MER 1.6%) Australian Infrastructure Fund $10,000 (MER 2.7%) Jarryd is looking to sell all three managed funds and invest the money into a share portfolio. He does not know anything about managed funds but believes he has the ability to successfully select and trade in ASX listed shares in order to make reasonable gains. Required 1. Determine the type of investments that an Australian infrastructure fund would invest into. (200 words) (3 marks) 2. Would it be worth Jarryd holding his investments within a master fund or wrap account structure? What are the advantages and disadvantages of this approach? (300 words) (3 marks) 3. Would you recommend that Jarryd sell the three funds in order to trade in direct shares? (300 words) (3 marks) 2 BFA204assignment RWC2016 Question 2 Claire and Daniel, who are both aged 60, have owned a drafting business for the last 20 years. All their children are grown up and self-sufficient and hence the couple think this is a good time for them to make some plans for their retirement, which they hope to be at around age 65. Neither Claire nor Daniel have any specific knowledge as to what a financial adviser does, nor do they understand what is involved in the financial planning process. Claire is particularly concerned about privacy issues and is reluctant to answer any specific questions. Discuss with Claire and Daniel what services you offer and explain to them the financial planning process. Additionally, discuss with them what information they will need to supply and how this information will be used. (1000 words) (8 marks) Question 3 Following your advice a few years ago, Paul Sandilands took out an income protection insurance policy which provided for indemnity cover equivalent to 75% of his earnings payable monthly in arrears. Unfortunately, about 3 months ago, Paul was injured in a workplace accident and is only now getting back to full physical fitness. Prior to his accident, Paul's before-tax monthly income was $5,000 ($3,800 after-tax). Paul is feeling bored staying at home and is considering going back to work on a part-time basis (3 mornings per week) as long as he is better off financially from doing so. His employer has offered him a before-tax monthly salary of $2,500 ($2,100 after-tax) if he goes back to work part-time. Required 1 Calculate Paul's monthly claim under his income protection insurance cover if he decides not to take up the offer to return to work on a part-time basis. (1 mark) 2 Calculate Paul's monthly claim under his income protection insurance cover if he decides to take up the offer to return to work on a part-time basis. (2 marks) 3 Is Paul financially better returning to work on a part-time basis? Provide relevant calculations to justify your response. (2 marks) 3 BFA204assignment RWC2016 Further notes for assignment completion. Please read these notes thoroughly. It is your responsibility to meet the requirements. Marks will be deducted for 1, 2, 3, 4 & 9 below. Show workings, include all relevant steps and ensure that your final response is expressed in simplified form. You will not be penalised for consequential errors in calculations. You will be penalised for poor interpretation and presentation of workings e.g. missing $ signs and 2 decimal points. Assignments will not be accepted if not typed (including formulae and graphs). We recommend that you use computer software for word-processing and spreadsheet modelling. Interpretation of calculations where requested will require a minimum of one paragraph. Unless otherwise advised in writing, all work submitted for assessment must be completed by the student alone. While discussion of the topic is encouraged, no student is permitted to use any work of any other person and any material used from any publication must be acknowledged in full. You must use the official TSBE cover sheet for the assignments. Your student number and student name should be included in the header or footer of every page of the assignment. Any applications for extensions must be received by the unit coordinator before the due dates. Such applications will be treated on their merits. Work and family commitments do not normally constitute sufficient reason for the granting of extensions. Please do not put your assignments in any type of folder. Just attach the coversheet to the front of your assignment with one binding e.g. one staple. Bibliographies are required for assignments. You should acknowledge all references you used to assist you in completing the assignment. This includes your textbooks and your study notes. 4