Unit convenor and teaching staff |
Unit convenor and teaching staff
Lecturer
Nicholas Callil
Contact via Email
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Credit points |
Credit points
2
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Prerequisites |
Prerequisites
(Admission to MAppFin or GradDipAppFin) and (AFCP801 or ECFS865)
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Corequisites |
Corequisites
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Co-badged status |
Co-badged status
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Unit description |
Unit description
This unit provides an in-depth knowledge of the challenge of understanding the nature of whole of life investing. A framework is developed to model the various risks followed with techniques to solve it whilst addressing the various complexities and uncertainties including longevity, inflation, and interaction with age pension. This unit will assist those involved in developing, managing and analysing any investment strategy for whole of life investing, particularly in the accumulation and retirement phases of the superannuation and retirement industry.
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Information about important academic dates including deadlines for withdrawing from units are available at https://www.mq.edu.au/study/calendar-of-dates
On successful completion of this unit, you will be able to:
To pass this unit (requires a Mark of 50 or better) the student must pass the final examination.
Name | Weighting | Hurdle | Due |
---|---|---|---|
In Class Group Exercise | 10% | No | Last day of class |
Assignment | 40% | No | Refer to iLearn |
Final Exam | 50% | Yes | Refer to Timetable |
Due: Last day of class
Weighting: 10%
Summary of Assessment Task
Individual / Group: Group
Due Date: Last day of class (details will be handed out in class)
Grading Method: Refer to 'Standards Required to Complete the Unit Satisfactorily' section
Submission Method: In class
Duration: Approx. 20 minutes for each group to be confirmed by lecturer
Extension Requests:
Due: Refer to iLearn
Weighting: 40%
Summary of Assessment Task
Individual / Group: A combination of individual and group work (refer to Assignment coversheet).
Due Date: Refer to the Unit's iLearn site
Grading Method: Refer to 'Standards Required to Complete the Unit Satisfactorily' section
Submission Method: Via Turnitin on iLearn.
Duration: Refer to Assignment coversheet
Extension Requests:
Due: Refer to Timetable
Weighting: 50%
This is a hurdle assessment task (see assessment policy for more information on hurdle assessment tasks)
Summary of Assessment Task
Individual / Group: Individual
Due Date: Refer to Timetable.
Assessments: Different Class Groups have different deadlines. Students should find the timetable and dates relevant to their group at www.mafc.mq.edu.au
Grading Method: Refer to 'Standards Required to Complete the Unit Satisfactorily' section
Submission Method: As per MAFC Program Rules & Procedures at www.mafc.mq.edu.au
Duration: 2 hours plus 10 minutes reading time
Examination Conditions:
Extension Requests:
Face-to-Face Teaching: Generally 22 hours
Timetable: Detailed timetable for classes are on the Centre’s web site www.mafc.mq.edu.au
Class Changes:
Students will only be permitted to change classes if authorised by the Applied Finance Centre.
Request for changes must be made:
Consultation Times:
Students who wish to contact any of the teaching staff may do so through:
Text: There is no text for this unit.
Additional Readings:
Lecture Notes: Available in printed form and electronically via iLearn.
Study Problems:
Pre-Unit Materials:
Calculators:
Assumed Access:
Unit iLearn Site:
Important Notice:
The sections are covered over 6 lectures.
TOPIC 1: INTRODUCTION TO LIFE CYCLE INVESTING
1.1. Introduction to Life Cycle Analysis
1.2. Life Cycle of liabilities?
1.3. Industry Background
1.4. What is the safe withdrawal rate?
TOPIC 2 : THE PROBLEM TO SOLVE
2.1. State as an asset-liability problem
2.2. Life cycle cash flows
2.3. Developing a Life Cycle Cash Flow Model
2.4. How do you solve this problem
2.5. Analyse investment volatility
TOPIC 3: TECHNIQUES TO SOLVE THE INVESTMENT STRATEGY PROBLEM
3.1. Solving the LCI problem
3.2. Case studies: Some known solutions introduction
3.3. Apply Monte Carlo technique
3.4. Using the Monte Carlo technique
TOPIC 4: APPLY TO VARIOUS CASES
4.1. Introduction
4.2. Estimated retirement outcomes for a young person
4.3. Is there time for an empty nester to improve their retirement outcome?
4.4. Now that I’m at my retirement date, what is my SWR?
4.5. Case studies: Safe withdrawal rates from various studies
TOPIC 5: ROUND OUT THE SOLUTION
5.1. Longevity risk
5.2. Impact of social security
5.3. Inflation risk
5.4. Analyse "sequencing risk"
5.5. Concepts to add additional features
TOPIC 6: MANAGING THE END GAME: TECHNIQUES TO MANAGE THE UNCERTAINTIES IN RETIREMENT
6.1. Recap
6.2. Monitor, assess and adjust
6.3. Products that manage some risks and what is given-up
6.4. In class exercise - monitoring
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Students should read the Unit Guide carefully at the start of semester. It contains important information about the unit. If anything is unclear, please consult one of the unit lecturers.
University Policy on Grading:
Specific Unit Grading:
Grade | Expectation |
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High Distinction | Provides consistent evidence of deep and critical understanding in relation to the learning outcomes. There is substantial originality and insight in identifying, generating and communicating competing arguments, perspectives or problem solving approaches; critical evaluation of problems, their solutions and their implications; creativity in application as appropriate to the discipline. |
Distinction | Provides evidence of integration and evaluation of critical ideas, principles and theories, distinctive insight and ability in applying relevant skills and concepts in relation to learning outcomes. There is demonstration of frequent originality in defining and analysing issues or problems and providing solutions; and the use of means of communication appropriate to the discipline and the audience. |
Credit | Provides evidence of learning that goes beyond replication of content knowledge or skills relevant to the learning outcomes. There is demonstration of substantial understanding of fundamental concepts in the field of study and the ability to apply these concepts in a variety of contexts; convincing argumentation with appropriate coherent justification; communication of ideas fluently and clearly in terms of the conventions of the discipline. |
Pass | Provides sufficient evidence of the achievement of learning outcomes. There is demonstration of understanding and application of fundamental concepts of the field of study; routine argumentation with acceptable justification; communication of information and ideas adequately in terms of the conventions of the discipline. The learning attainment is considered satisfactory or adequate or competent or capable in relation to the specified outcomes. |
Fail | Does not provide evidence of attainment of learning outcomes. There is missing or partial or superficial or faulty understanding and application of the fundamental concepts in the field of study; missing, undeveloped, inappropriate or confusing argumentation; incomplete, confusing or lacking communication of ideas in ways that give little attention to the conventions of the discipline. |
Fail Hurdle | Student has obtained a raw mark over 50, yet failed all available attempts of at least one hurdle assessment. |
Review of Grade and final examination Script viewing: