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Assignment 2: 25775 – Superannuation and Financial Planning

Spring Session 2025

Due: 11.59 pm, Sunday, 12 October 2025

Value: 40 marks

Overview

This assignment requires you to prepare a scaled financial plan for your clients, David and Grace Wilson. The plan is to be presented as a scaled Statement of Advice (SoA), focusing on their retirement planning adequacy, superannuation, and the funding of their granddaughter Lily’s living expenses while she studies at university.

You are expected to demonstrate your ability to apply financial planning knowledge and professional judgment in developing recommendations suitable for the Wilsons’ circumstances.

Assignment Requirements

1. Format and Structure

• Prepare an SoA that complies with industry standards and professional guidelines.

• Clearly label different sections with sub-headings to highlight the structure of the SoA.

• Reference the sample SoAs provided in class as a guide.

• Keep the scope limited to retirement planning, superannuation, and living expense adequacy.

2. Content and Analysis

Your SoA should:

• Assess the Wilsons’ retirement adequacy.

• Analyse their current financial position and provide strategies to optimise it.

• Consider their risk profile and current superannuation investment choice.

• Address the funding of Lily’s anticipated living expenses while at university.

• Provide advice on the most appropriate choice of superannuation fund and investment option in light of their goals and preferences.

Guidelines

1. This assessment task is an individual assignment.

2. Refer to course materials, including topic slides, sample SoAs and other provided sources, for analysis techniques.

3. Include a properly formatted reference section to acknowledge all sources of information, including products, tables, and statistics.

4. Use clear, concise language throughout the SoA and presentation.

Meet the Clients – David and Grace Wilson

David (58) and Grace (55) Wilson live in Newcastle with their granddaughter Lily, aged 14, for whom they have been guardians since the passing of their daughter three years ago. While this role has been deeply fulfilling, it has also added financial responsibilities at a stage of life when many of their peers are preparing for retirement.

David is a self-employed electrician who now works fewer hours due to recurring back problems. He earns around $36,000 per year. As a sole trader, he does not receive compulsory superannuation contributions unless he makes them voluntarily, and his contributions have been irregular.

Grace has worked as a high school teacher for over 25 years. She earns $95,000 per year and receives 12% SG contributions. She has recently developed a strong interest in ethical and ESG-focused investments and would like to see these reflected in her superannuation.

The Wilsons reside in their family home in Newcastle, which is valued at $1.6 million, with a remaining mortgage of $150,000. They also own an investment property valued at $900,000 with a $300,000 mortgage. The property generates $24,000 per year in gross rental income. In addition, they hold a joint share portfolio valued at $180,000, mainly invested in large ASX companies.

Their combined superannuation balance is $720,000 — Grace $400,000 and David $320,000. Both currently hold their superannuation with AustralianSuper, invested in the High Growth option. A risk assessment shows they are both Balanced investors.

They estimate their current living expenses at $85,000 per year. Lily’s living expenses while at university are expected to add around $20,000 per year for four years. They also carry $15,000 in high-interest credit card debt.

Financial Situation – Assets and Liabilities

Assets

- Family home: $1.6m (mortgage $150k).

- Investment property: $900k (mortgage $300k), rental income $24k pa.

- Superannuation: $720k combined (Grace $400k; David $320k).

- Shares: $180k (blue-chip ASX portfolio).

Liabilities

- Home mortgage: $150,000 remaining.

- Investment property mortgage: $300,000 remaining.

- Credit card debt: $15,000 at 18% p.a.

The Wilsons' Aspirations

During your initial consultation, you discover that Alex and Samantha have several specific goals they wish to achieve:

- Retire at age 65 with an annual retirement income of around $90,000.

- Provide for Lily’s living expenses while she studies at university.

- Ensure their superannuation strategies are aligned with their needs and preferences.

- Consider investment options that reflect Grace’s ESG values.

Submission Details

• Deadline: 11:59 PM, Sunday, October 12, 2025

• Submit your SoA as a soft copy via Turnitin on UTS Canvas.

Evaluation

Your assignment will be assessed based on:

• The quality and accuracy of your retirement adequacy analysis.

• The depth of your assessment of superannuation arrangements.

• Professionalism and clarity of your scaled SoA.

Please refer to the marking rubric for detailed assessment criteria.