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25796 Personal Wealth Management

Warning: The information on this page is indicative. The subject outline for a particular session, location and mode of offering is the authoritative source of all information about the subject for that offering. Required texts, recommended texts and references in particular are likely to change. Students will be provided with a subject outline once they enrol in the subject.

Subject handbook information prior to 2018 is available in the Archives.

UTS: Business: Finance
Credit points: 6 cp

Subject level:

Postgraduate

Result type: Grade and marks

Requisite(s): 25721 Investment Management
These requisites may not apply to students in certain courses.
There are course requisites for this subject. See access conditions.

Description

In this subject students study the investment and financial issues arising from the management of personal wealth. They examine the structure of the Australian financial planning industry and analyse the most important components of wealth management:

  • setting financial plans
  • budgeting and taxation planning
  • investment planning and strategies (including managed funds)
  • risk management and insurance
  • home ownership and property investment
  • superannuation and social security
  • leveraged investments
  • retirement planning
  • estate planning.

The subject is designed to provide students with the ability to develop and manage the financial plans of clients in a way that meets their specific goals and long-term objectives.

Subject learning objectives (SLOs)

Upon successful completion of this subject students should be able to:
1. evaluate the critical elements involved in developing and managing a personal financial plan including the range of products, services, and securities available to individuals
2. develop financial plans that meet the needs and wealth management objectives of different individuals
3. understand the ethical, regulatory and legal environments in which personal wealth is managed
4. evaluate and manage the impact that the ethical, regulatory and legal environments have on the financial planning process, including potential conflicts of interest

Contribution to the development of graduate attributes

This subject examines the investment and financial issues arising from the management of personal wealth. It commences with an introduction to the Australian financial planning industry and then explores the most important components of wealth management:

  • setting financial plans,
  • budgeting, taxation planning,
  • investment planning and strategies (including managed funds),
  • risk management and insurance,
  • home ownership and property investment,
  • superannuation and social security,
  • leveraged investments,
  • retirement planning and
  • estate planning.

Students will develop a financial plan that meets the specific needs of a hypothetical client. Successful completion of this subject will contribute to students’ acquiring the following graduate attributes:

  • critical thinking and analytical skills,
  • communication skills (reading/writing) to work with others and
  • business practice oriented skills.

The Subject earning Objectives (SLOs) also align the UTS graduate attributes in the following ways:

  • SLO 1: critical and independent thinking and disciplinary, professional and technical knowledge as students learn how to apply financial planning strategies to meet client needs.
  • SLO 2: critical and independent thinking and disciplinary, professional and technical knowledge as students learn how to apply financial planning strategies to meet client needs.
  • SLOs 3 & 4: ethical understanding in the context of financial planning. This is particularly important given recent scandals in financial planning industry and recent regulatory changes.

Teaching and learning strategies

The subject will be taught using a combination of lectures and integrated workshop questions. These classes will be supplemented with extensive electronic learning materials and resources. UTSOnline will be used to share information and encourage interaction between staff and students. Students will also use Word and Excel to complete the financial planning case study.

Students are expected to prepare for class by accessing relevant links to online material as well as going through assigned weekly readings uploaded via UTSOnline and in the prescribed textbook. Students should be prepared to discuss the material during class. Short examples are contained within each week’s lecture to demonstrate how theory is applied to real-world problems.

As a means of connecting the subject to professional practice and providing an active learning experience, a variety of guest lecturers from the financial planning industry are invited to speak about their professional practice. Their lectures provide real life examples on how they manage the impact of the ethical, regulatory, and legal environments in which they operate. These talks help reinforce concepts learned in class and from online materials. Students are encouraged to ask the guest lecturers questions.

There will be in-class multiple choice questions which students will participate in using Pingo, an interactive online application. The correct solutions will be uploaded to UTSOnline so that students can self-assess their knowledge.

There will be two in-class quizzes, in the form of a multiple choice quiz in Week 3 and a short answer quiz in Week 7. Students’ scores in these quizzes will form part of their overall assessment for the subject. The correct solutions will be uploaded to UTSOnline

Students will be required to submit a financial plan for a hypothetical client in Week 9 At the end of the lecture each week, time will be allocated for students to discuss how the concepts and strategies learned in class may be applied to this assignment. This will provide students with an important in-class collaborative learning experience.

Students are encouraged to use the Discussion Board on UTSOnline to interact with each other, and to enhance their understanding of the topics covered in the subject.

Content (topics)

  • Introduction and overview of the financial planning industry in Australia
  • Developing financial plans, budgeting; taxation planning
  • Investment planning including: direct investments; managed funds; manager/product selection; asset allocation;
  • Home ownership and property investing;
  • Risk management and insurance;
  • Social security;
  • Leveraged investments;
  • Superannuation planning;
  • Estate planning;
  • Retirement planning

Assessment

Assessment task 1: Case Study (Group)

Objective(s):

This addresses subject learning objective(s):

1, 2, 3 and 4

Weight: 20%
Length:

The entire assignment is to be 18 pages maximum (excluding title page and references but including appendices). Please check assignment for further instructions.

Criteria:

The assessment criteria for the financial plan are:

  • how accurate and complete is the analysis of the client’s current financial position,
  • the presentation and clarity of the financial plan and
  • how appropriate the advice is and whether the advice may be realistically implemented.

Assessment task 2: Quizzes (Individual)

Objective(s):

This addresses subject learning objective(s):

1, 2 and 3

Weight: 20%

Assessment task 3: Final Exam (Individual)

Objective(s):

This addresses subject learning objective(s):

1, 2, 3 and 4

Weight: 60%

Minimum requirements

Students must achieve at least 50% of the subject’s total marks.

Required texts

Australian Master Financial Planning Guide 2016/2017, CCH. (hereafter AMFPG)

Recommended texts

Diana Beal and Warren McKeown (2009), Personal Finance. Milton, Qld. : John Wiley and Sons Australia. ISBN: 9780470802397 (hereafter BM)

Warren McKeown, Mike Kerry & Marc Olynyk (2014), Financial Planning 2nd Edition, John Wiley and Sons. ISBN 9781118644836 (hereafter MKO)

Sharon Taylor and Roger Juchau (2012), Financial Planning in Australia, LexisNexis Butterworths. (hereafter TJ)

Some chapters of BM and TJ are provided at:

http://www.lib.uts.edu.au/drr/search.html?q=25796

Students are also encouraged to read the e-magazine Professional Planner (http://www.professionalplanner.com.au/) for the hot topics in financial planning. The latest issues are free online.

Some useful websites:

Australian Securities and Investments Commission: www.asic.gov.au

Australian Tax Office (ATO) website: www.ato.gov.au

Department of Human Services: www.humanservices.gov.au

Future of Financial Advice homepage: futureofadvice.treasury.gov.au