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George (aged 88) plans to retire at the end of this calendar year. He is married to Bella who is aged 57. Bella is semi-retired
George (aged 88) plans to retire at the end of this calendar year. He is married to Bella who is aged 57. Bella is semi-retired but works occasionally on and off throughout the year. She will retire herself in six months, but stated she might return to casual work perhaps. They provide you with the following details: Homeowner with a home worth $800,000. One Motor vehicle in average condition, worth $20,000. Home contents which have an insured value of $50.000. An online cash management account of $400,000, earning 1.1% An investment property held in George's name, on the market now to be sold for $450,000 and not rented. George's superannuation fund is worth $200,000 consisting of $15,000 tax-free and $185,000 taxable components and Bella's superannuation fund is worth $200,000 being 100% of fully taxed components. They desire $50.000 a year to fund their living requirements. They wish to cinimise any ongoing tax and also disxicoise the funds left to their estate. George would like to coaxicoise his age pension entitlements if any, as he feels this is a priority George is convinced there are benefits of adding to superannuation. He wants to Daxicoise their superannuation accounts. Outline to George and Bella a potential financial strategy to meet their retirement needs, taking into account George's desire to maximise his age pension whilst meeting their income needs of $50.000. List any issues you or they will need to consider. (5 marks) Outline to George how they could utilise superannuation taking into account concessional and non-concessional cap thresholds, to meet their goals, and again state any issues they will need to consider. In your answer point out any disadvantages or advantages of your strategy. Set out as manner issues as you can. (3 marks) George (aged 88) plans to retire at the end of this calendar year. He is married to Bella who is aged 57. Bella is semi-retired but works occasionally on and off throughout the year. She will retire herself in six months, but stated she might return to casual work perhaps. They provide you with the following details: Homeowner with a home worth $800,000. One Motor vehicle in average condition, worth $20,000. Home contents which have an insured value of $50.000. An online cash management account of $400,000, earning 1.1% An investment property held in George's name, on the market now to be sold for $450,000 and not rented. George's superannuation fund is worth $200,000 consisting of $15,000 tax-free and $185,000 taxable components and Bella's superannuation fund is worth $200,000 being 100% of fully taxed components. They desire $50.000 a year to fund their living requirements. They wish to cinimise any ongoing tax and also disxicoise the funds left to their estate. George would like to coaxicoise his age pension entitlements if any, as he feels this is a priority George is convinced there are benefits of adding to superannuation. He wants to Daxicoise their superannuation accounts. Outline to George and Bella a potential financial strategy to meet their retirement needs, taking into account George's desire to maximise his age pension whilst meeting their income needs of $50.000. List any issues you or they will need to consider. (5 marks) Outline to George how they could utilise superannuation taking into account concessional and non-concessional cap thresholds, to meet their goals, and again state any issues they will need to consider. In your answer point out any disadvantages or advantages of your strategy. Set out as manner issues as you can
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