How to deal with this assignment? And how to calculate?
E Y] Jerry and Jenny Jones 45 Trouble Street, Thornhnry JerryandJeonyJones approach youfor some nancialplanningadyice. Theoouple earns good level of combined income and enjoy a very oomthahle lifestyle. They have meuoudatedafew inveshnemshuthavenot Iakeomuehinterestiotheirsupemntmation balances. However,theyhavemda fewreportsoflatewhichpointontthatle acclnnulated supezlamuntion balances ofroany Australians will not be sufcient to support their rereroeot. 'I11e oouplenowfeelsthatperhapsle lime hasooroetoseeksomeprofessiona] advioebefore it is too late. INITIAL MEETING Mg' III-1'1" 1. Personal Details: Jerry Jones Address -45 Trmiole Street, Thornhory Age-45 HeaIr good{sl1oker} Employment Marketing roamger wit Stlppm't Beds -Salary of $105,060 pa. plus 9.5% suprelannual'ion guarantee contribution based on salary -Ernployer allows salary sacricing Jenny Jones Address - 45 Trouble En'ee't, 'I'hornbmy Age-45 Health good {non-smoker} Employment Fart-time mootmtant (4 days a week] at Creative Aeootntts -Salary of $50,\" p.a. FILE 9.5% superannuation glmJantee oonh'ibtrlion based on saIary -Ernployer allows salary sacricing The couple has 3 children; Jae]: [aged 14}, Jade {aged 12} and Jasmine {aged 3]. 1. l['lient objectives: In BtdldweaIHJbetweenoowaodwhentheyrere-expeetedtohewhenkrryand JI-yhirn I The couple estimate daey will require a combined real income of per annum ntpresentvahledollars'modoensupelannuaonmdswhenteyrere o Theywantaninveshneotplaothatismsytomanage I ThewantmmmremtdaeirmemllinveshneHBarewepmporonedhasedmieir riskproleandofasuimblequality I Tocontinuetohavetheirehildreoattendptivateschools. They 1would like a: roinitnise their tax liability as dumb as possible Theyudshtorednoetheirlevelofdebtasqoieyaspossible \fI Supummuaouearniugsaretobehasedupouleopeuing supeclaummlonaccouut balance I Anmmlloanrqsaymentstemaultesmnedollaxamoumeeehyearmadehmm ' off :- cash sm'plus {deeit} is accumulated in the eotqile's savings aecomlt. I The couple's eldest chin Iaelr. requires a lap-top computer for school expected cost oflequiredduriug semesterlllll. I Thecrediteardisusedtopayieilnurma] homeholdeitpenaes. I 'Ihecoupleedvisesthatdmiug'dlellfHnaucialyeaLthekitcheoulneed renovating at an expected cost ofil. The}.r expect to mtl this by wiidiawiug monies. 'om their term deposit I 'I'hecoupledonotbaveprivatehealthinsurauce I Usecmcmmmtesforataxcalculations SEEDS-ED MEETING end ol'Juue 201'? :- JmmyadviseSHIMshelsmhemmhedomheremploymeMeffecveomlJuly 1013 andthatshewi receivealump summiuatloupaymentfromheremployei'ef momlmacmsedamulandmaercelveandoleremployoem payments. Aasometlese are fully taxable. Jenuywautstonowstayathomeforaperiodmlookaerthechilth'enaudwinotaeelt temoneemploymen't until ] 11111..r 2.019 [expected pie-tax. salaJyofarouud $303111] pa. working 2.5 thysaweek; work related expeteesof]. I Tocovertllelostlucomeiutheeveotofareuenchmencteooupleadvisetatelmugh leywouldliketoretaiutheiIcunemlihtyleasouichaspossibleieyareprepaiedto redueetheixentertaiumemexpensestoauetSS,lZp.a.andrerlucetheirtraveland holzhyexpenses alsotoanetpaeommencluginlulyll. They-doom belleveleycouldcutbackonmuch else. Rguired: Theootqilerequestsiatyouanalyaetheh'cmemaudcuremucia] simatloubeaerlenie Wehrmmnmdpmesomecuggecdonsmhowtheymuimpmveteulongqeno uetwealtli. 'IhecoupleaJenotstuewltatieiruauccia] simatleuwillbeoneeJennyis reueochedalloughieyiealiseitwibeasouggle. Ymmrequkedmprqsmarqsmformeemmleamwermgmeiscuesdemiledbelow. The reponahouldbeaddremedandmittufortheootmle. 'l'herepocrtshouldeoutaiuaemreriug Irtteradimsedtoieeoupledetliliugthepurpoaelnrlgeneralcontmtoflereport. Theicarenospecierequirementsforiefonmtofierqiort ltshouldbeuaecrfriendlyfor iedieoLaoswerie followingquestionsuoughmeuaeofheadiogs, and make meof tables, charts etc where appropriate. h'ou are required to provide the following: i. CashmvstatementsfordieinandyenrsendingJDJuIeHIE-Illincluding detailed tan calculations [use current ran rates]. 2. BalanoesheetsfordreSi'mancialymrsendedJJtmeEl-ll 3. iAnexoelsprmdsheetofaccmmdatuisupmmuntionfmbomJerrymdimmyfor eechyearom l Julyll'itodieirretiiement iir3 erel. h'ou should use the following column headings in your spread sheet to illustrate the aecmnulation of their superannuation mds to retirement. Oink: Admpllju' [315% ddler Chin; llp' Iqu- eolll'ihou ear-hp Iqu- III-u.- m to: hell-e: dill-i. ii An excel spa-end sheet of aecunorlated superannuation for both Jerry and Jermy omlemmrnenoementoi'theirrerementon l .lulyleGEdetailinghow long theirsupesannmtionis likelytolast. To answer this part ol'the question, you are required to: e determinewhatamomrtofw ineome\"theco1.lpler1equireumthei.r superannuation acemmts at the time of retirement [see client ohjeelives}. I based on receiving the required level of\"real income" in retirement, determine how many years the couple's aoelnriulated supermuuntion is likely to generate an income e- withdraw a pension payment]. Youcanassmuediatreomrpleoomhinedlehaoemnulatedsuperhrmmre combinedpensionacunmtuponrethementandeemrerateol'retmn cto'rerltlyr received by Jerry. h'ou should use the following coannn headings in your spread sheet to il]ustrate thereductionof'dseirstmmamuiatinninds inretinemen'c 4. i. Determine 1rvhat you believe the risk profile ofthe couple to be based on the inibmralion provided in this case sludy (ie. conservative, balanced, growth, highly aggressive etc] and discres the reasons for yourview. ii Determine the couple's current asset aJJoeation [across al] their investments including super] inhoth Earrdl'irterrnsandprese'ntris intheformoi'the foliowing table. Dismtsstlleexnenttowhich the currentassetallocationis oonsistentwilthe couple's risk prole determined in (i) above. FINEIFFhIIndLEtiontthnncielenning Ernerl_2ll of
