Jaden Zehler is 25 and works as an Accountant, a role he has been in for the past four years.
He has just had his annual performance review in August where he received a $5,000 pay
rise, bringing his salary to $75,000 per annum (including super). Jaden has been thinking
that he needs to start saving more and now with this pay rise he thinks it’s time to finally do
something, otherwise he risks spending it all. Jaden lives at home with his parents and pays
them board, but he would like to start building up his assets so he can purchase his own
place to live in a couple of years’ time. He’s trying to decide between a share portfolio or
buying an investment property somewhere in Brisbane’s CBD. Personal Financial Plan.
Jaden has some savings and was aiming to reach a total of $50,000 for either a deposit on a
rental property or to start his share portfolio by the end of next year (in 16 months). He is
interested in leveraging if he does end up buying shares, and would limit his risk by not
borrowing the maximum. He considers himself to have reasonably high risk tolerance and is
comfortable with an aggressive investment strategy. Personal Financial Plan.
Jaden is single and has no dependants. He enjoys travel and usually has a few trips each
year, at least one to the snow fields for snowboarding. He has had several jobs in the past,
which is why he has a few super funds, but he didn’t always keep track of these funds
regularly. Jaden has just transferred his savings into a high interest account earning 2.5%
compounded monthly from the start of September. He drives a 2014 Subaru Impreza, which
he purchased new 3 years ago as he has to drive to work, but has no other substantial assets
apart from his personal furniture and electronics. Jaden has a credit card which he pays in
full on the 9th of each month. He uses it to pay for his regular day to day expenses so he can
accumulate frequent flyer points. He also has an interest free store credit card which he
used to purchase his electronics on interest free terms. The interest free period expires in
six months’ time. Personal Financial Plan.
Jaden’s personal cash flow statement and balance sheet are included below. He has tried to
identify all of his cash flows and assets and liabilities, but he’s not entirely sure he was
successful in completing this task. While he does save, he knows he spends more than he
should and could improve his saving strategy, and he is open to recommendations. He is
also almost guaranteed to receive another $5,000 pay rise at the end of next August and he
intends to save the increase in his salary. Personal Financial Plan.
Personal Cash Flow Statement for the month of August, 2017
Salary (net of super) $5,708
Total inflows $5,745
Car payments 600
Gym membership 88
Personal food/eating out 300
Car registration 30
Car insurance (CTP) 30
Mobile phone + plan 90
Store credit card repayments 100
Tax and Medicare levy 1,265
Total outflows $4,603
Note: There is no outflow for the Visa as the associated outflows are attributed to the actual expense.
Personal Balance Sheet at 31 August, 2017
Savings account (earning 1.75% compounded
Home contents (includes furniture and electronics) 10,000
MLC Masterkey Super Fundamentals 8,000
Total assets $108,000
Car loan 15,000
Visa credit card 1,000
Store credit card 1,200
Total liabilities $17,200
Net Worth $90,800
Part A – Budgeting and cash flow (20 marks)
1. Clearly identify if Jaden is on track to meet his savings goal. If Jaden is not on track,
construct a monthly budget for Jaden that will enable him to achieve his financial
goals. Make sure you justify your recommendations. Demonstrate how this budget
will allow Jaden to achieve his goals. Include your workings in an appendix. Personal Financial Plan.
2. Review other aspects of Jaden’s finances. Make other recommendations based on
what you have learned in this unit so far. (10 marks)
Part B – Investment Research and Recommendation (20 marks)
You are required to make a recommendation on whether Jaden should work towards buying
an investment property or investing in shares. You must use research to inform your
recommendation. This should be in the form of industry or government reports, news
articles (not blogs), and peer-reviewed (academic) literature. Make sure you consider the
relative benefits and risks of each investment, the expected return (from research), and any
tax implications. Personal Financial Plan.
Professional Communication (20 marks)
• Your assignment must be presented using a business report format, including
specified section headings as shown below. It is not necessary to include an
executive summary or table of contents.
o Budgeting and Cash Flow
o Other Recommendations
o Investment Research and Recommendation
• In addition, your report should have:
o A cover page
o A brief introduction and conclusion
o A reference list (not a bibliography)
o Any appendices that are necessary
• You should prepare the report as though you are presenting it to Jaden.
• Your research report must be typed, appropriately referenced (APA style), and
professionally presented. The word count is 1,500 words, not including the reference
list. Tables do not form part of the word count if inserted as an image. Relevant
appendices may be attached and do not form part of the word limit. 10% above the
word limit is acceptable. Grading will be based upon the text that is within the word
limit (or 10% above). Words exceeding 10% above the word limit will not be
evaluated. Personal Financial Plan.
• The research project is to be completed individually by students. The work must
reflect your personal work and any outside sources should be appropriately
referenced. Plagiarism will be checked via Turnitin. Any plagiarism will be dealt with
in accordance with University policy. Personal Financial Plan.
• All questions should be posted on the Discussion Board.
• An electronic copy of the report must be submitted via Turnitin on Blackboard. Your
report should be in Word format and the file name should be your family name
followed by your first name initials (e.g. JonesS.doc).
• It is your responsibility to check online submissions have been uploaded correctly (i.e.
students should open the file from the online platform to check this, once it has been
uploaded). You must ensure the correct file has uploaded correctly prior to the due
date and time. Personal Financial Plan.
• You do not need to submit the CRA with your research project.
• The electronic copy of the report must be submitted by the deadline.
• Ensure you keep a copy of your assignment.
• You are not required to prepare a Statement of Advice. This is a research report and
should follow the instructions as listed above.
• You will not be recommending actual financial products. It is sufficient to identify the
broad product groups. Personal Financial Plan.
• Clearly state any assumptions. Provide references for assumptions where possible.
Personal Financial Plan
Jaden is an accountant to intend to start saving to accumulate wealth. He has received a $5000 pay rise bringing his salary to $75,000 per annum. Jaden intend to increase his saving by reducing his personal expenses. He intends to accumulate $50,000 to invest in shares or investment property. Jaden admit that he spend more than he save. He has welcome recommendation how to improve his saving. To achieve this goal, it is essential to look at his spending behavior. Jaden personal expenses indicate that he spend more money on holidays $500, entertainment $400 payment of board $600. This are the major expenses that can be reduced to increase saving. For instance, Jaden can reduce the amount of holidays to increase his saving…….
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