Building on the fundamentals of financial planning undertaken in Applied Financial Planning (FPC002) or equivalent, this subject provides a comprehensive overview of issues relating to superannuation and retirement planning.
The subject addresses the different aspects of superannuation including contributions, benefits and income streams, as well as how superannuation is treated in death, divorce and bankruptcy. Retirement savings accounts, retail funds, industry funds, self managed superannuation funds, aged care and equity release schemes are also covered.
The subject covers the formulation of a statement of advice (SOA), concentrating on how to structure the various required elements and providing recommendations.
Relevant legal and regulatory requirements are detailed, along with examples and strategies that financial advisers can use to benefit their clients.
Prescribed text: There is no prescribed text for this subject. Students will be provided with key readings and access to Kaplan’s online data bases. Students are encouraged to research and read widely on the topic.
At the completion of this subject students should be able to:
- Analyse superannuation structures and strategies for various client situations.
- Explain the taxation implications of superannuation strategies for contribution, withdrawal and insurance at the fund level.
- Analyse superannuation retirement income stream strategies according to their benefits, tax implications and social security treatment as they relate to different client situations.
- Formulate strategies to maximise superannuation benefits and clients’ entitlements to social security benefits and aged care.
- Discuss the advantages and disadvantages of equity release schemes as a source of retirement income.
- Design superannuation strategies in respect of divorce, bankruptcy and death benefits.
- Develop a compliant statement of advice (SOA).