Question 3 As a prospective financial advisor studying MAA255 Financial Planning, before you start coming up with financial plans for others, it might be worthwhile to start a financial plan for yourself Thus, in this task you will take on the role of both the client and the planner and will be thinking about your retirement If you do make any additional assumptions along the way do state them explicitly Here are some assumptions to start you off A graduate in financial planning on average, earns about $57,000 a year You can assume that this amount is your starting salary package (i e it includes the superannuation guarantee contribution) Your salary package is expected to increase by 1 8 per year and that this will account for any increases due to the inflation and any promotions throughout your lifetime To make your age years invested calculation easier, you can assume you have your birthday the day you start working You can assume the tax rates to remain constant, and that inflation (CPI) is 1 5 per annum Superannuation Guarantee Contributions are set to increase from now until 2025 at which time you can assume it to stay constant at 12 per annum Your superannuation funds are invested in a balanced option The balanced option is expected to generate a net return of 4 0 p a (net of tax and fees) for the foreseeable future Required a) You aim at building wealth between now and when you retire within your superannuation fund One of your goals is to retire on your 67th birthday Prepare a spreadsheet showing the amount of accumulated superannuation for each year through till retirement (you should use the headings in the table below as a sample on how to format your own table) Assume that you make no further contributions or savings towards retirement and that your superannuation balance begins at $0 You will also need to state your age at the time you commence working Year Age Salary ($) Opening Superannuation Balance ($) Superannuation Guarantee Contributions ($) Contributions Tax (15 ) Add Earnings (Net of tax fees) Closing Superannuation Balance 2021 21 57,000 0

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Question 3 As a prospective financial advisor studying MAA255 Financial Planning, before you start coming up with financial plans for others, it might be worthwhile

Question 3

As a prospective financial advisor studying MAA255 Financial Planning, before you start coming up with financial plans for others, it might be worthwhile to start a financial plan for yourself. Thus, in this task you will take on the role of both the client and the planner and will be thinking about your retirement. If you do make any additional assumptions along the way do state them explicitly. Here are some assumptions to start you off:

A graduate in financial planning on average, earns about $57,000 a year. You can assume that this amount is your starting salary package (i.e. it includes the superannuation guarantee contribution).
Your salary package is expected to increase by 1.8% per year and that this will account for any increases due to the inflation and any promotions throughout your lifetime.
To make your age / years invested calculation easier, you can assume you have your birthday the day you start working.
You can assume the tax rates to remain constant, and that inflation (CPI) is 1.5% per annum.
Superannuation Guarantee Contributions are set to increase from now until 2025 at which time you can assume it to stay constant at 12% per annum.
Your superannuation funds are invested in a balanced option. The balanced option is expected to generate a net return of 4.0% p.a. (net of tax and fees) for the foreseeable future.

Required:

a) You aim at building wealth between now and when you retire within your superannuation fund. One of your goals is to retire on your 67th birthday. Prepare a spreadsheet showing the amount of accumulated superannuation for each year through till retirement (you should use the headings in the table below as a sample on how to format your own table). Assume that you make no further contributions or savings towards retirement and that your superannuation balance begins at $0. You will also need to state your age at the time you commence working.

Year	Age	Salary ($)	Opening Superannuation Balance ($)	Superannuation Guarantee Contributions ($)	Contributions Tax (15%)	Add Earnings (Net of tax & fees)	Closing Superannuation Balance
2021	21	57,000	0	...	...	...	...