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E Y] Jerry and Jenny Jones 45 Trouble Street, Thornhnry JerryandJeonyJones approach youfor some nancialplanningadyice. Theoouple earns good level of...

How to deal with this assignment? And how to calculate?


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E Y] Jerry and Jenny Jones 45 Trouble Street, Thornhnry JerryandJeonyJones approach youfor some financialplanningadyice. Theoouple earns
good level of combined income and enjoy a very oomfithahle lifestyle. They have
meuoudatedafew inveshnemshuthavenot Iakeomuehinterestiotheirsupemntmation
balances. However,theyhavemda fewreportsoflatewhichpointontthatflle acclnnulated
supezlamuntion balances ofroany Australians will not be sufficient to support their refireroeot.
'I11e oouplenowfeelsthatperhapsflle 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 HeaIflr —good{sl1oker} Employment Marketing roamger wiflt Stlppm't Beds
-Salary of $105,060 pa. plus 9.5% suprelannual'ion guarantee contribution
based on salary
-Ernployer allows salary sacrificing 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 sacrificing The couple has 3 children; Jae]: [aged 14}, Jade {aged 12} and Jasmine {aged 3]. 1. l[‘lient objectives: In BtdldweaIHJbetweenoowaodwhentheyrefire-expeetedtohewhenkrryand
JI-yhirnfifl I The couple estimate daey will require a combined real income offififlflfl per annum
ntpresentvahledollarsfi'modoensupelannuafionfimdswhenflteyrefire o Theywantaninveshneotplaothatismsytomanage I ThewantmmmreflmtdaeirmemllinveshneHBareweflpmporfionedhasedmflieir
riskprofileandofasuimblequality I Tocontinuetohavetheirehildreoattendptivateschools.
They 1would like a: roinitnise their tax liability as dumb as possible



I Supummuafiouearniugsaretobehasedupouflleopeuing supeclaummlonaccouut
balance I Anmmlloanrqsaymentstemaulfltesmnedollaxamoumeeehyearmflafldehmm
' off :- fl cash sm'plus {defieit} is accumulated in the eotqile’s savings aecomlt. I The couple’s eldest chin Iaelr. requires a lap-top computer for school — expected cost
offlfiflfllequiredduriug semesterllfllll. I Thecrediteardisusedtopayflieilnurma] homeholdeitpenaes. I 'Ihecoupleedvisesthatdmiug'dlelfilflfHfinaucialyeaLthekitcheoufllneed
renovating at an expected cost offlifllfl. The}.r expect to fimtl this by wiflidiawiug
monies. fi'om their term deposit I 'I'hecoupledonotbaveprivatehealthinsurauce I Usecmcmmmtesforafltaxcalculations SEEDS-ED MEETING — end ol‘Juue 201'? :- JmmyadviseSHIMshelsmhemmhedfiomheremploymeMeffecfivefiomlJuly 1013 andthatshewifl receivealump summiuatloupaymentfromheremployei'ef
momflflfifilflmacmsedamufllandmaerficelflveandoflleremployoem payments. Aasometlese are fully taxable.
temoneemploymen‘t until ] 11111..r 2.019 [expected pie-tax. salaJyofarouud $303111] pa.
working 2.5 thysaweek; work related expeteesoffififlfl]. I Tocovertllelostlucomeiutheeveotofareuenchmencflteooupleadvisefltatelflmugh
hofilzhyexpenses alsotoanetfiflflflpaeommencluginlulylfllfi. They-doom
belleveflleycouldcutbackonmuch else. Rguired: Theootqilerequestsfliatyouanalyaetheh'cmemaudficurefimucia] simatloubeaerlenflie
uetwealtli. 'IhecoupleaJenotstuewltatflieirfiuauccia] simatleuwillbeoneeJennyis
reueochedalflloughflieyiealiseitwiflbeasouggle. Ymmrequkedmprqsmarqsmformeemmleamwermgmeiscuesdemiledbelow. The
reponahouldbeaddremedandmittufortheootmle. 'l'herepocrtshouldeoutaiuaemreriug
Irtteradflimsedtoflieeoupledetliliugthepurpoaelnrlgeneralcontmtoffllereport. Theicarenospecifierequirementsforfliefonmtofflierqiort ltshouldbeuaecrfriendlyfor fliedieoLaoswerflie followingquestionsfluoughmeuaeofheadiogs, and make meof
tables, charts etc where appropriate.

h’ou are required to provide the following: i. CashflmvstatementsfordieifinandflyenrsendingJDJuIeHIE-Iflllincluding
detailed tan calculations [use current ran rates]. 2. BalanoesheetsfordreSi'mancialymrsendedJflJtmeEfllfl-lfllfl 3. iAnexoelsprmdsheetofaccmmdatuisupmmuntionfmbomJerrymdimmyfor
eechyearfiom l Julylfll'itodieirretiiement iir3fl erelflfl. h'ou should use the following column headings in your spread sheet to illustrate
the aecmnulation of their superannuation fimds to retirement. Oink: Afldmpllju' [315% fiddler Chin; llpfl' Iqu- eolll'ihflou 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 fiomfllemmrnenoementoi'theirrefirementon l .lulyleGEdetailinghow long
theirsupesannmtionis likelytolast. To answer this part ol‘the question, you are required to: e determinewhatamomrtofw ineome”theco1.lpler1equirefiumthei.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 fie- withdraw a pension payment]. Youcanassmuediatflreomrpleoomhinedlehaoemnulatedsuperhrmmre
combinedpensionacunmtuponrethementandeemflrerateol'retmn cto'rerltlyr received by Jerry. h'ou should use the following coannn headings in your spread sheet to il]ustrate
thereductionof'dseirstmmamuiatinnfiinds 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'ntflris intheformoi'the
foliowing table. Dismtsstlleexnenttowhich the currentassetallocationis oonsistentwifllthe couple’s risk profile determined in (i) above. FINEIFFhIIndLEtiontthnncielenning Ernflerl_2flll fioffl

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