FPE011 Debt Strategies

This subject introduces students to the concepts and principles of debt as it relates to wealth creation. An introduction is provided of the various types of debt used to acquire assets and the related taxation, regulatory and estate considerations. The subject then explores the relationship between debt and building wealth and examines the various aspects of geared investments. The subject aims to equip students with the ability to analyse cash flows, manage risk and use their knowledge to assess the performance of various types of debt strategies.

For more information, please refer to the subject outline.

  • Learning outcomes
    • At the completion of this subject students should be able to:

      1. Examine the role and suitability of debt products in a wealth management strategy
      2. Compare the various types of debt products available
      3. Examine the cash flow and tax impact of various debt strategies
      4. Compare returns and risk profiles of various debt strategies
      5. Analyse different debt strategies to various investment scenarios
      6. Integrate relevant legislation related to debt products and strategies into client advice
      7. Recommend appropriate debt strategies
  • Subject content
    • Up to Study Period 2 2019

      Topic Title
      Topic 1 Introduction to debt products
      Topic 2 Relevant regulations
      Topic 3 Building wealth with debt
      Topic 4 Mortgage debt
      Topic 5 Cash flow management
      Topic 6 Margin lending
      Topic 7 Debt and estate planning
      Topic 8 Risk management and tax considerations

      For more information, please refer to the subject outline. 

       

      Study Period 3 2019 onwards

      Topic Title
      Topic 1 Introduction to debt products
      Topic 2 Relevant regulations
      Topic 3 Building wealth with debt
      Topic 4 Mortgage debt
      Topic 5 Cash flow management
      Topic 6 Margin lending
      Topic 7 Debt and estate planning
      Topic 8 Risk management and tax considerations
      Topic 9 Superannuation borrowing arrangements

      For more information, please refer to the subject outline. 

  • Assessment
  • Pre-requisites
  • Reading list
    • Up to SP2 2019

      Taylor, S, & Juchau, R, 2016, Financial planning in Australia – Advice and wealth management, 7th edn, LexisNexis Butterworths, Chatswood, NSW. ISBN 9780409341775.

       

      SP3 2019 onwards

      Taylor, S & Juchau, R, 2017, Financial planning in Australia – Advice and wealth management, 8th edn, LexisNexis Butterworths, Chatswood, NSW.​ ISBN 9780409347609.

       

      Retailers of educational books include Co-op Bookshop and Boffins Bookshop. Texts can also be borrowed from the Kaplan library or other libraries. Details of required and further reading are provided in the subject room.  Purchase of any text other than a prescribed text is not required.