Task -
Based on the interview transcript 'Liam - Initial Client Interview' (below) you are required to prepare a detailed file note using the template provided. This file note should include an overview of the interview with Liam, including his goals and objectives and any issues raised; and then based on this information, your strategic recommendations based on these circumstances and goals. These recommendations should include wealth creation, wealth protection (insurance), and any debt management and lifestyle recommendations (as appropriate).
In practice, your file note would most likely go to a paraplanner who would use the recommendations (and reasoning) given in your file note to prepare a Statement of Advice (SoA) for Liam. However, you are not required to prepare a SoA.
Please note that a standard SOA template generally contains generic information such as what is a managed fund, total and permanent disability insurance etc. Accordingly, you are not required to include generic product information such as this in your file note. Instead, the focus of your file note should be your strategy recommendations (and reasons why etc) as indicated in the file note template instructions.
The purpose of this assessment item
This assessment item is a practical, real world assessment task. It has been designed to assist students in putting the course content into practice and increasing student's work-readiness.
This assessment task is also designed to assist students in preparing for latter courses, such as Financial Planning, Construction and Review which requires students to complete a full SOA, the next step in the financial planning process.
While your strategy for the holiday goal is sound at face value, you need to have a re-think of your strategy for the home goal. In particular, you have gone way over budget on Liam's savings, recommending monthly payments of $1000 for the holiday goal and then $851 for 6 years for the home deposit. The total monthly savings cannot exceed $1000 throughout the term of the strategies for both goals. Also limiting Liam to basically two bank account strategies is not going to work for his goals in the timeframe his has. Liam's risk profile is growth/aggressive so you can take on some more risk with product choice for the goal with the longer timeframe.
You have not stated the strategy you are recommending for the home goal, just that you want monthly compounding interest. You need to really consider how you will reach Liam's goal and what sort of product you are recommending eg if a managed fund, is it active or passive, growth or balanced?
Need to think of other, more realistic alternatives for each goal for part B E.g. in terms of other alternatives for the home deposit goal, did you consider a combination of MISs? Or some in a bank account? Why these weren't recommended? Just make sure your alternatives (and recommended strategies) are stronger for Part B.
Make sure for Part B that you reference the rates of return on different products. The home goal strategies in particular will need a major re-think for Part B which could also mean modifying your strategies for the holiday goal.
Attachment:- Assignment.rar