Principles of Retirement and Estate Planning

Running head: PRINCIPLES OF RETIREMENT AND ESTATE PLANNING
Principles of Retirement and Estate Planning
Name of the Student:
Name of the University:
Author’s Note:

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PRINCIPLES OF RETIREMENT AND ESTATE PLANNING
Covering Letter
To: Mark and Susan Saunders
41 Super Street Diamond Creek 3089
Melbourne
Sub: Covering Letter for the Report
Date: 14 May 2019
Respected Mr and Mrs Saunders,
In view of the conversation we had earlier during our appointment, we had gone through
interactions regarding the various aspects with respect to the financial resources and information
in order to build up an effective retirement planning and investment portfolio. According to our
discussions we had previously, the following paper consists of the report in which every question
has been answered in view to the answers desired. Please have a go through it thoroughly and
feel free to revert back in case any doubt arises and in need of any clarification.
The report has been prepared to cover every aspect in lieu of the retirement planning.
Regards
Malcolm Johnson
Financial Consultant

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PRINCIPLES OF RETIREMENT AND ESTATE PLANNING
Table of Contents
Answer to question 1:......................................................................................................................3
Sub part (i):..................................................................................................................................3
Sub part (ii):.................................................................................................................................3
Sub part (iii):................................................................................................................................6
Sub part (iv):................................................................................................................................7
Sub part (v):...............................................................................................................................10
Answer to question 2:....................................................................................................................11
Bibliography:.................................................................................................................................16

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PRINCIPLES OF RETIREMENT AND ESTATE PLANNING
Answer to question 1:
Sub part (i):
Statement of Cash flow for the Year 30 June 2017
Particulars Mark Susan Total
Income
Salary $ 32,000.00 $ 32,000.00
Superannuation contribution $ 3,200.00 $ 3,200.00
Net Income from Business $ 125,000.00 $ 125,000.00
Income from term deposit $ 1,000.00 $ 1,000.00
Dividend Income $ 4,000.00 $ 4,000.00
Total Income $ 125,000.00 $ 40,200.00 $ 165,200.00
Expenses $ -
Work related expenses $ 700.00 $ 700.00
Donation $ 100.00 $ 120.00 $ 220.00
Total Expenses $ 100.00 $ 820.00 $ 920.00
Net Income/ Taxable
income $ 124,900.00 $ 39,380.00 $ 164,280.00
Tax Payable $ 33,845.00 $ 4,024.20 $ 37,869.20
Medicare Levy $ 2,498.00 $ 787.60 $ 3,285.60
Gross Tax Payable $ 36,343.00 $ 4,811.80 $ 41,154.80
Franking credit $ 1,200.00 $ 1,200.00
Net income after tax $ 88,557.00 $ 33,368.20 $ 121,925.20
Adjustments $ -
Living Expenses $ 45,400.00 $ 14,600.00 $ 60,000.00
Mortgage and loan repayment $ 29,888.00 $ 9,612.00 $ 39,500.00
Expected Cash Surplus $ 13,269.00 $ 9,156.20 $ 22,425.20
Sub part (ii):
Statement Showing Accumulation of Income from shares
Yea
r Opening Balance Growth Accumulated
closing Value
2017 $ 1,00,000.00 $ 6,000.00 $ 1,06,000.00
2018 $ 1,06,000.00 $ 6,360.00 $ 1,12,360.00
2019 $ 1,12,360.00 $ 6,741.60 $ 1,19,101.60
2020 $ 1,19,101.60 $ 7,146.10 $ 1,26,247.70
2021 $ 1,26,247.70 $ 7,574.86 $ 1,33,822.56