Learning to Produce a Financial Plan: Student Perceptions of Integrating Knowledge and Skills
| 19 mar 2024
O artykule
Data publikacji: 19 mar 2024
Zakres stron: 29 - 54
Otrzymano: 10 maj 2018
Przyjęty: 03 sty 2019
DOI: https://doi.org/10.2478/fprj-2019-0002
© 2019 Michelle Cull, published by Sciendo
This work is licensed under the Creative Commons Attribution 4.0 International License.
Features and functions of the financial planning process
|
Define scope of advice and relevant circumstances Investigate client’s relevant circumstances Set prioritised, specific measurable goals Consider potential strategies and options to meet objectives and needs Consider all aspects of impact of advice such as tax and social security consequences f. Ensure good communication so that advice and recommendations are understood Make strategic and product recommendations appropriate to client circumstances |
Collect required information and identify related facts by making required calculations and arranging client information for analysis. Analyse: identify and consider issues, perform financial analyses, assess resulting information to develop strategies. Synthesise information to develop and evaluate strategies to create a financial plan. |
Student suggestions on learning
| Comments | Frequency |
|---|---|
| More assistance/time required with developing strategies | 29 |
| More discussion of each section and coverage of all topics required before SOA due | 29 |
| More examples of SOA required | 20 |
| More feedback required | 16 |
| More examples and calculations required in class | 15 |
| More examples required | 14 |
| SOA template should be provided | 12 |
| More detailed explanations and examples required for SOA | 11 |
| Need more progress checks or more information on topics, such as Estate Planning and Insurance, after final progress check on investment strategies | 7 |
| More details needed to be covered in lectures | 6 |
| Would have liked to explore and discuss SOA in entirety in class | 6 |
| Need to be shown how to compile SOA | 4 |
| More practical questions need to be done | 2 |
| Need qualified financial or para-planner to explain SOA | 2 |
| Further explanation needed of concepts not covered in text | 1 |
| More consultation hours required | 1 |
| Site visit or movie of real practice required | 1 |
| 176 |
Analysis of variance: perceptions of difficulty by PFP-relevant employment, no employment and other employment
| Employment | N | Mean | Std. Dev. | F | ||
|---|---|---|---|---|---|---|
| S1: Interrelationship of topic areas | PFP employment | 227 | 3.35 | .982 | 4.922 (2, 607) | .01 |
| No employment | 267 | 3.61 | .883 | |||
| Other employment | 116 | 3.43 | 1.006 | |||
| S2: Formulation of investment and retirement strategies | PFP employment | 229 | 3.33 | 1.061 | 11.181 (2, 607) | .00 |
| No employment | 265 | 3.75 | .899 | |||
| Other employment | 116 | 3.59 | 1.071 | |||
| S3: Meeting a client’s short and long-term goals | PFP employment | 228 | 3.32 | .996 | 5.647 (2, 607) | .00 |
| No employment | 266 | 3.61 | .885 | |||
| Other employment | 116 | 3.51 | 1.051 |
j.fprj-2019-0002.tab.009
| Professional six-step financial planning process (ISO 2005; FPSB 2006) | Australian Regulatory Guide 146 on Skill Requirements ( |
|---|---|
| 1. Establish and define the client-planner relationship. | 1. Establish relationship with client |
| 2. Gather client data, including goals. | 2. Identify client objectives, needs financial situation |
| 3. Analyse and evaluate client’s financial status. | 3. Analyse client objectives, needs, financial situation and risk profile |
| 4. Develop and present financial planning recommendations and/or alternatives. | 4. Develop appropriate strategies and solutions |
| 5. Present appropriate strategies and solutions to client | |
| 6. Negotiate financial plan with client | |
| 5. Implement the financial planning recommendations. | 7. Coordinate implementation of agreed plan |
| 8. Complete and maintain necessary documentation | |
| 6. Monitor the financial planning recommendations. | 9. Provide ongoing service (at discretion of client) |
Independent samples t-tests of perceptions of difficulty: by gender
| Gender | Sex | Number | Mean | Std. Dev. | ||
|---|---|---|---|---|---|---|
| S1: Interrelationship of topic areas | Male | 311 | 3.47 | .929 | -0.44 (605) | .66 |
| Female | 296 | 3.50 | .978 | |||
| S2: Formulation of investment and retirement strategies | Male | 310 | 3.39 | 1.045 | -4.45 (605) | .00 |
| Female | 297 | 3.75 | .952 | |||
| S3: Meeting a client’s short and long-term goals | Male | 311 | 3.37 | .968 | -2.57 (605) | .01 |
| Female | 296 | 3.57 | .964 |
Comparison of perceptions of difficulty: by age group
| Age | N | Mean | Std. Dev. | Median | |
|---|---|---|---|---|---|
| S1: Interrelationship of topic areas | 18-21 | 206 | 3.38 | .984 | 3.00 |
| 22-25 | 247 | 3.59 | .962 | 4.00 | |
| 26-30 | 69 | 3.46 | .901 | 4.00 | |
| 31-45 | 73 | 3.41 | 1.070 | 4.00 | |
| 46 + | 14 | 3.79 | .693 | 4.00 | |
| S2: Formulation of investment and retirement strategies | 18-21 | 205 | 3.43 | 1.006 | 4.00 |
| 22-25 | 246 | 3.76 | 1.041 | 4.00 | |
| 26-30 | 70 | 3.54 | .958 | 4.00 | |
| 31-45 | 74 | 3.35 | .957 | 3.50 | |
| 46 + | 14 | 3.43 | .938 | 3.50 | |
| S3: Meeting a client’s short and Long-term goals | 18-21 | 205 | 3.43 | .961 | 4.00 |
| 22-25 | 247 | 3.61 | .977 | 4.00 | |
| 26-30 | 70 | 3.40 | .907 | 3.50 | |
| 31-45 | 73 | 3.22 | 1.070 | 3.00 | |
| 46 + | 14 | 3.43 | .938 | 4.00 |
Demographics of sample
| Student demographic | Percentage of Sample | |
|---|---|---|
| Gender | Male | 51% |
| Female | 49% | |
| Age | <25 yrs | 75% |
| >25 yrs | 25% | |
| First Language | English | 45% |
| International student | 20% | |
| Study mode | Full-time | 75% |
| Part-time | 25% | |
| Full-time work experience | 56% | |
| PFP-relevant work experience | 38% | |
Comparison of perceptions of difficulty: by first language
| First Language | S1 | S2 | S3 | |
|---|---|---|---|---|
| English | N | 273 | 272 | 272 |
| Mean | 3.31 | 3.24 | 3.28 | |
| Std. Dev. | 0.98 | 1.07 | 1.02 | |
| Median | 3.00 | 3.00 | 3.00 | |
| Asian | N | 130 | 129 | 129 |
| Mean | 3.72 | 3.82 | 3.68 | |
| Std. Dev. | 0.8 | 0.84 | 0.84 | |
| Median | 4.00 | 4.00 | 4.00 | |
| Indian | N | 38 | 38 | 38 |
| Mean | 3.76 | 4.05 | 3.74 | |
| Std. Dev. | 0.94 | 0.7 | 0.72 | |
| Median | 4.00 | 4.00 | 4.00 | |
| Middle Eastern | N | 30 | 30 | 30 |
| Mean | 3.27 | 3.67 | 3.63 | |
| Std. Dev. | 1.11 | 1.06 | 1.07 | |
| Median | 3.00 | 4.00 | 4.00 | |
| Other | N | 141 | 143 | 143 |
| Mean | 3.55 | 3.79 | 3.55 | |
| Std. Dev. | 0.93 | 0.92 | 1.07 | |
| Median | 4.00 | 4.00 | 4.00 |
Independent samples t-tests of perceptions of difficulty: international and local
| International and Local students | N | Mean | Std. Dev. | |||
|---|---|---|---|---|---|---|
| S1: Interrelationship of topic areas | Intl | 126 | 3.62 | .828 | 1.82 (610) | .05 |
| Local | 486 | 3.45 | .976 | |||
| S2: Formulation of investment and retirement strategies | Intl | 126 | 3.87 | .867 | 4.36 (610) | .00 |
| Local | 486 | 3.48 | 1.033 | |||
| S3: Meeting a client’s short and long-term goals | Intl | 126 | 3.61 | .867 | 1.91 (610) | .06 |
| Local | 486 | 3.45 | .990 |