Question
On June 2015 Bill is 55-year-old self-employed builder with a spouse and two kids (age 10 and 15). Bill has never had a professional financial
On June 2015 Bill is 55-year-old self-employed builder with a spouse and two kids (age 10 and 15). Bill has never had a professional financial advice due to cost. his gross income is $200,000 a year and he is paying off a $300,000 mortgage in his $800,000 which he owns jointly with his spouse Lara. Bill is conservative and regularly contributes 15% of his gross income to his superannuation account as concessional contribution and keeps $20,000 cash balance for emergency money. His superannuation account has a balance of$200,000 as of Dec 31, 2014. Lara is a full time home maker and does not earn a separate time income. Bill's family relies on Medicare for health benefits.
Insurance, Superannuation, and Taxation
1.Propose and explain 2 tax effective insurance arrangement for Bill
2.Despite contributing to superannuation regularly, Bill lacks of knowledge in terms of maximizing his superannuation balance. Explain to Bill the associated benefits of contributing to superannuation
Estate Planning and family breakdown
1.Bill has no estate plan. Explain to Bill what would happen to his assets according to NSW intestacy law
2.Besides working as a builder, Bills has also set up a retail business selling both men's and women's clothing. He hired Susah to oversee his business on daily basis. Due to recent economic downturn, Bill discovered that he is making $10,000 losses per month with debit owing to creditors of $150,000. Discuss the importance of estate planning for Bill and advise him in ways to better manage his estate and non-estate assets
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