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Investment Planning 1 assitance needed!

Discussion in 'Financial Planning Study Group' started by wolverine, 13th Jan, 2010.

  1. wolverine

    wolverine New Member

    Joined:
    13th Jan, 2010
    Posts:
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    Location:
    Perth, WA
    Hi All

    Am new to this forum and have just spent some time reading over previous posts - what a great forum and the support and encouragement to each other is fantastic.

    Now doing Investment Planning 1 and this is my last unit. Have completed most of the assignment but have hit a real road block with question 3 - the question about Jenny and the 10 year bond. Have read previous threads and still struggling a bit with what calculations to complete - i'm sure it's staring me in the face but for some reason i just cant crack it!

    Any assistance would be greatly appreciated :)
     
  2. Christina76

    Christina76 New Member

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    7th Jan, 2010
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    Location:
    Sydney,NSW
    Hi, where you up to? I'm stuck with Case Study question f and g, have you done it?

    f. Comments on the investment ideas that clients have considered so far:
    a) selling all their share investments and putting the proceeds into a term deposit, or

    b) investing the money via a margin loan in three direct equities: WOW, WES and CBA shares. While you should briefly consider the merits of the individual investments in your response, emphasis should be placed on the appropriateness of these investments ideas in the context of the couple’s overall portfolio.

    g. A response to Joanna’s statement: ‘I am very worried about the recent downturn in the markets and am thinking that I will sell out and buy back when times are better. What do you think?’
     
  3. Christina76

    Christina76 New Member

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    7th Jan, 2010
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    Location:
    Sydney,NSW
  4. Sophi

    Sophi Member

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    12th Jan, 2010
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    Location:
    Brisbane
    hi Wolverine,
    not sure if you have already completed Q3, but I used the equation from page 6.13. I know the formula says it is for 3yrs bonds but the bond in the example is paid half yearly and it also says that 250days remaining which means that both coupon payments are still to be paid. and I just halved both the coupon % and interest % and used the parcel price of 100 for FV. hope this helps. How did you go with the case study?thanks
     
  5. netcentre4

    netcentre4 Member

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    9th Feb, 2010
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    Location:
    VIC
    Investment Planning 1

    I have just enrolled in Investment Planning 1 and planning to start my assignment soon. Any help with the assignment would be appreciated especially question 6. Any tips?
     
  6. kam86b

    kam86b Kam86b

    Joined:
    17th May, 2010
    Posts:
    2
    Location:
    Worrigee, NSW
    Investment Planning 1 - Case study

    Hi everyone,

    Im a newbie and I came across this site last night and think it is fantastic it helped me get a grasp on question 3 which i was having no luck at understanding before hand. I am now completing the case study questions and am wondering what others thought of the clients queries with the following:

    - selling all their shares and depositing the proceeds in a term deposit or

    - investing the money via a margin loan in three direct equities: WOW, WES & WPL.

    Now my thoughts are that the clients risk profile is conservative balanced which means that they are approx 80% cash/ fixed interest and 20% australian shares.

    This would mean that the margin lending idea is not an ideal strategy...? Im also not sure what to do with the share because selling the shares means they will be hit with CGT.

    For one of my strategies i have thought to pay out debt and invest the remaining in an conservitive investment fund and the other i thought to leave the funds in the CMA and pay out the debt???

    I dont think im being to inventive and i still need to account for the $62,000 surplus funds (i.e. regular savings plan??).

    Has someone done this question or currently completing this question to give me a shove in the right direction.

    Cheers :)
     
  7. gocats

    gocats Well-Known Member

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    13th Apr, 2009
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    50
    Location:
    Geelong, Victoria
    Hi, Ive just started the case study. Are you using the previous modules ie introduction to FP to work out their investment risk profile?
     
  8. kam86b

    kam86b Kam86b

    Joined:
    17th May, 2010
    Posts:
    2
    Location:
    Worrigee, NSW
    Hey gocats,

    I just submitted my assignment so fingers crossed. I worked out there risk profile based on there asset allocation as they have majority of their assets in cash they are more conservative. However you may want to look at the possibility of suggesting they move to a balanced investor in your strategy because they have made suggestions of investing in a margin loan so there is room for movement regarding the diversity of their portfolio.

    Hope this helps!
     
  9. gocats

    gocats Well-Known Member

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    13th Apr, 2009
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    Location:
    Geelong, Victoria
    thnks kam it does. I'm going back and forth between the questions and the case study at the moment cos I have not idea what I'm doing! Let me know how you go on your assignment - i might have some more questions for you!
     
  10. HOCFP

    HOCFP Active Member

    Joined:
    29th Aug, 2010
    Posts:
    27
    Location:
    adelaide
    Investment Planning 1 Assignment Question 4

    hi all quick question could someone please assist me in working out the IRR for 4c???

    something as easy as this, i cant seem to get my head around it