accounts

FAQs

1. Are my calculations OK?

a. Your calcs should be as accurate as possible but I am only looking for reasonable figures, not grading you on the pinpoint accuracy of them. You should be consistent in you assumptions eg his date of birth, his actual retirement date etc. You should regard the calcs as a groundwork to underpin your recommendations, they are not the ‘answer’ on their own.

2. Are the pensions contracted in or contracted out ?

a. Private and workplace pensions are more normally contracted out other than in the public sector , but I don’t mind which you use so long as you are consistent

3. Do I need to account for inflation in all figures?

a. Depending on your recommended course of action in relation to each of the products, you may have to account for inflation and growth - assume a reasonable figure in the light of current economic indicators and apply it consistently where used.

4. Can I put my calculations in the appendices ?

a. I would expect most of the calculations to appear in the appendices – the word limit is tight and should concentrate on the summary recommendations and the rationale for them.

b. Please ensure that the appendices are appropriately linked to your discussion eg his take home pay is ... (app2)

5. Do I need to reference my sources in part 1 as well as part 2?

a. Yes – if you eg. decide to change his savings account you need to reference the new recommended product with a date.

6. The Britannia account has been discontinued. What should I do ?

a. The account is still in force for existing customers and the rate can be found on the full interest rate list on the Britannia website

b. Alternatively you can use the Select Access 3 account instead or recommend an alternative account .

7. I am confused about the mortgage – it says they have no mortgage but then there is a mortgage on their rental property?

a. The couple live in their own home which is mortgage free, but they have a second property that they rent out to tenants. They have an interest only mortgage on this property, that must be repaid in 2014.

8. What about capital gains on the rental property if they sell it?

a. You do not have enough info to calculate whether a capital gain charge arises. You can proceed on the assumption that there is no gain arising.

9. Is the format a report or an essay?

a. The first section is a client facing plan. You can write it in the first person as an adviser if you wish (eg in the light of your circumstances, I recommend.....) or you can advise the adviser )eg the clients circumstances suggest that their recommended course of action should be to .........)