Course Title: Wealth Creation and Preservation

Part A: Course Overview

Course Title: Wealth Creation and Preservation

Credit Points: 12

Course Code




Learning Mode

Teaching Period(s)


City Campus


625H Economics, Finance & Marketing


Sem 1 2006,
Sem 2 2006

Course Coordinator: Warren McKeown

Course Coordinator Phone: +61 3 9925 5904

Course Coordinator

Course Coordinator Location: 108.12

Pre-requisite Courses and Assumed Knowledge and Capabilities

BAFI 1032 Superannuation and Retirement Planning 1
BAFI 1034 Insurance and Social Security

Course Description

The course deals with general principles of Wealth Creation. This component of the course of study will introduce students to different theories and strategies of Wealth Creation, the attributes required to accumulate wealth and an understanding of the importance risk profiling. Students will consider the value of various aspects of investment opportunities, assets and vehicles, the impact of borrowing to invest, home ownership and salary packaging as Wealth Creation strategies.

The second part of the course will concentrate on Estate Planning and Preservation and its role within the financial planning process. The general aim of the course is to help students analyse a client’ s situation, identify Estate Planning needs and then facilitate achieving a solution in conjunction with appropriate professionals.

To achieve the required understanding, structured grounding in basic concepts of Wealth Creation and Estate Planning is necessary, combined with practise in the use of these concepts.

Objectives/Learning Outcomes/Capability Development

The course is designed to provide an overview of benefits Wealth Creation and Estate Planning strategies in Australia. The course enables students to develop a working knowledge of Wealth Creation and Estate Planning. This essential understanding is to ensure a financial planning client’s Wealth Creation and Estate Planning needs are identified and adequately addressed. The course also aims to develop an understanding of how Wealth Creation and Preservation forms an integral part of the financial planning process.

The area of Wealth Creation and Estate Planning is dynamic in nature as new rules and legislation are introduced regularly. Students are expected to read widely on issues relating to the course and familiarise themselves with the relevant contents of the prescribed texts and suggested references. Students should avail themselves to the various articles presented in the media and throughout the course especially in newspapers and professional publications to keep abreast of changes.

At the conclusion of the course, the student should be able to:

Gain an appreciation of the general principles of Wealth Creation
Demonstrate an understanding of some of the theories of Wealth Creation
Identify the attributes required to accumulate wealth
Understand the risk profile required of individuals seeking to accumulate significant wealth
Investigate the effects of gearing (borrowing) when investing in share and property related investments
Display an understanding of the methods used to value a business and the issues related to a successful transfer of a business to a successor
Gain an appreciation of the retention of value of wealth created through the development of a business
Identify various concepts and components of Estate Planning
Outline the role and importance of Estate Planning as part of the financial plan construction process
Understand the specific terminology, basic regulations and strategies of Estate Planning
Display an understanding of the importance and implications of making a will and the role of the executor
Discuss the rights of beneficiaries and impact of their rights on Estate Planning
Demonstrate an understanding of the operation of trusts and their role in Estate Planning
Understand concepts associated with deceased estates and superannuation upon a persons death
Understand how a deceased assets are taxed and develop strategies to minimise the effect of tax on those assets

Overview of Learning Activities

To achieve the objectives listed above, this course requires you to participate in various learning activities. These activities comprise the following:

Attendance at, and note-taking during, scheduled lectures.
Reading of, and note-taking from, prescribed texts and references.
Completion of distributed tutorial questions prior to each tutorial.
Attendance at, and participation during, tutorials.

Overview of Learning Resources

Recommended Text
Australian Master Financial Planning Guide (latest edition) CCH Australia Ltd ISBN 186468530 1

Overview of Assessment


Final Examination