Assignment help-AFAS200 Principles of Financial Literacy


Assignment help-AFAS200 Principles of Financial Literacy

AFAS200 Principles of Financial Literacy
Individual Assignment – Semester 3 -2016
Due to be submitted no later than 5PM Wednesday 18 January 2017
NO late assignments will be accepted, therefore students who fail to submit their
assignment by the above due date will be awarded a zero mark (NO EXCEPTIONS)
The assignment needs to be submitted online by the above date in a soft copy format via
Turnitin link placed on the Ilearn course website.
NO ASSIGNMENT WILL BE ACCEPTED VIA EMAIL OR ANY OTHER FORM/S
The work must be your own. Turnitin similarity reporting/rules are strictly applied
Penalties may be applied for similarities exceeding 20% and or where there is evidence
of plagiarism. Cases were systemic plagiarism is identified will be referred t the
university for further disciplinary actions
This assignment will comprise a total of 20% of the marks allocated for this Course.
Important Notes:
• The assignment must be typed (font 11, Arial or Times New Roman)
• Attempt ALL questions
• Where appropriate, the use of tables, graphs, flowcharts, etc. is encouraged to
help illustrate your point clearly
• Show workings and calculations where applicable
• Marks will be awarded for the presentation of your work
• Assumptions can be made, however, they need to be reasonable and logical and
cannot conflict with the facts in the question/s and must be clearly stated
• Always explain and justify your answer/s /recommendation/s
• Clearly state your source reference/s
• Total maximum word limit is 3,000 words
• Plagiarism by any student/s will render the student/s involved a zero mark and
possible further actions by the University
2 | P a g e
Case study – Couples information
Couple 1 Couple 2 Couple 3
Profile Wealth Accumulators Pre- Retirees Retiree
Names Tom & Gina Sean & Tina George & Rita
Ages Tom:29, Gina: 28 Sean:54, Tina: 52 George 68, Rita: 65
Marital Status Recently married Married (2 children ages
16 & 15)
Married (2 children and 2
grandchildren ages3&2)
Dependents 0 1 0
Occupation Tom: Lawyer
Gina: Accountant
Sean: General manager
Tina: Teacher
George: Retired
Rita: Retired
Household
Income (after
tax)
$185,000 $300,000 $110,000 (Pension and
investment income)
Living
Expenses
$135,000 $185,000 (including
mortgage)
$75,000
Assets (Total
assets owned
by the couple)
Home: Renting
Superannuation
$172,000 (3 accounts
for Tom and 2 for
Gina)
Cash at call: $12,500
Term deposit: $30,000
(matures 6 Jan 2017)*.
Car: $85,000
Home: $2.4Million
Superannuation
$670,000
Cash at call: $42,000
Term deposit: $77,000
(matures 5 Jan 2016)
Share & managed funds
$185,000
Cars: $130,000
Home $2.8 Million
Superannuation Pension
$1,750,000
Cash at call: $42,000
Term deposit: $175,000
(matures 8 January 2017)
Shares & managed funds
$500,000
Car: $95,000
Liabilities Credit cards $36,000
Personal loan:$22,000
Car Loan:95,000
Home Loan $ 650,000 Nil
Risk profile High Growth Growth Balanced
Goals &
objectives
Paying off debt,
saving a deposit to buy
a house and
going on a skiing
holiday to USA
Paying off a home loan,
saving ,
paying for private school
fees and
saving for retirement
Comfortable retirement,
going on a holiday to
Europe in the next 12
months and
starting a sinking fund for
their grandchildren
3 | P a g e
Assignment Questions (Total 100 marks)
IN YOUR OWN WORDS You need to prepare a report to answer the questions
below related to the 3 couples above. Your report needs to explain and discuss
issues asked in the questions below and related to the 3 couples, specific
circumstances.
1. Describe how budgeting and financial planning are important to help each of the
3 couples meet their goals and objectives. (20 Marks)
2. Discuss the key differences and the advantages and disadvantages of the
following investments. Comment specifically on the suitability of each of these
investments to each of the clients above. Explain and justify your answer.
a. Direct investment vs. investment via Mutual trust/Managed funds
b. Government vs. Corporate bonds
c. Use of Gearing (borrowing to invest) compare with not using Gearing
d. Defensive assets investment vs. Growth assets investment
(40 Marks)
3. Explain the concept of risk management and why it’s important to consider
insurance as part of risk management highlighting. List 1personal and 1 general
insurance recommendations to each of the 3 couples and explain why they would
be considered by each of the 3 couples (you need to list and explain 2
recommendations for each of the couples, 6 in total)
(10 Marks)
4. Explain why it’s important to consider superannuation as part of saving for
retirement and retirement palming. List and explain 2 possible
superannuation/pension recommendations or strategy and explain why they
would be considered by each of the 3 couples (you need to list and explain 2
recommendations for each of the couples, 6 in total)
(10 Marks)
5. Explain why it’s important to consider having a valid will and an appropriate
power of attorney as part of the couples’ estate planning highlighting the benefits
and risks as applicable. In your answer relate specifically to each of the 3 couples
individual circumstances.
Report Presentation (10 Marks)
Your report needs to be professionally presented and reader friendly
END OF ASSIGNMENT

Assignment help-AFAS200 Principles of Financial Literacy

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