Part A of Assessment 1 will require you to prepare a Strategy Paper outlining your key financial planning proposals. This is an important precedent

Assessment instructions

Part A of Assessment 1 will require you to prepare a Strategy Paper outlining your key financial planning proposals. This is an important precedent to your completion of Part B of the Statement of Advice (SOA) assignment, which will outline your financial planning recommendations in a Statement of Advice.

The strategy paper need to address all the question below:

Title slide

Scope of advice and advice limitations

Key Objectives

Risk profile

Proposed Advice Strategies - Superannuation (i.e. contribution recommendations and investment strategy recommendation)

Proposed Advice Strategies - Insurance (life, TPD and income protection recommendations)

Proposed Advice Strategies - Investment (i.e. their cash account, how to meet cash needs, and home loan objective)

Sources and application of funds table

Cashflow statement - current v. proposedWealth projection - for their superannuation assets only (but provide a separate projection for each client)

Any other relevant information, including references.

The suggested procedure to prepare you submission for Part A of Assessment 1 is as follows:

Read theFinancial Planning Case StudyprovidedSummarise the main financial planning objectives for the case study clients.

Outline a series of proposed financial planning strategies you will consider to address these objectives.

Consider the questions: What will the pre-and post cashflow analysis demonstrate? And how will it help your Strategy Presentation and your clients?

Outline your approach to the wealth projection. Asample projectionis available for you to access for this assessment.

Produce Powerpoint slides and detailed notes to each slide. The slides should be aimed at your fictitious clients, as if you were going to present your strategy to them in a meeting. The slide notes, however, should be written in an academic style, and demonstrate your ability to support your decisions with relevant financial planning concepts addressed during the course.

In terms of timing, please base your Strategy Paper and calculations (cashflows, forecasts) on the financial year commencing 1 July 2022.Please base your proposals and financial information using FY23 tax tables and superannuation legislation effective as 1 July 2022.Please refer to the CPA Superannuation and Tax Guide FY23 provided via learnonline.

Please refer to the strategy paper template provided via learnonline for guidance on what the content of your strategy paper should include.

You will need to include a forecast cashflow which reflects the household cashflow impact of your strategies. Please ignore any tax offsets, additional levies for the purpose of this exercise.

You will also need to include a 10-year wealth projection on their Superannuation Assetsonly.The wealth projection will need to reflect your proposed strategies. A template is provided via learnonline. Please note that you should prepare a wealth projection for each of their superannuation accounts.

The aim of the Strategy Paper is to provide your client with a summary of the financial planning strategies being proposed and the benefits of each recommendation. This is an important step in the advice process. It enables you, as their Financial Adviser, to educate your client on what is being proposed and why, and also provides your client with the opportunity to participate in the development of their financial plan before progressing with the more detailed recommendations in the SOA.

Assessment advice and resources

Before submitting your assessment, you may want to go through this checklist to ensure you have included all the required components:

Scope specified.

Objectives specified.

Proposed recommendations and reasons for each proposal.

Proposals address scope of advice and client objectives.

Reference to investment risk profile disclosure and evidence of discussion.

Sources and application of funds table

10-year projection(on their superannuation assets only) and assumptions.

Pre and Post high- level cash flow provided. Post cashflow to reflect proposals.

Outline of what was discussed with the client.

Supporting information included; referencing style followed appropriately; spelling and grammar checked throughout.