Covering Letter To Mark and Susan Saunders 48, Mayo Street Melbourne Sub: Retirement and Estate Planning 21 RETIREMENT AND ESTATE PLANNING

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

1RETIREMENT AND ESTATE PLANNING
Covering Letter
To Mark and Susan Saunders
48, Mayo Street
Melbourne
Sub: Covering Letter for the Report
Date: 21/09/2017
Respected Mr and Mrs Saunders,
In view of the interview we had earlier during our appointment, we had undergone interactions
regarding the various aspects with respect to the financial information in order to establish an
effective retirement planning investment portfolio. In line with the discussions we had
previously, the underline paper consists of the report in which every question has been answered
in view to the answers desired. Please have a go through it and feel free to revert in case any
doubt arises.
The report has tried to cover every aspect in lieu of the retirement planning.
Regards
Malcolm Johnson
Financial Consultant

2RETIREMENT AND ESTATE PLANNING
Table of Contents
Answer to Question No 1................................................................................................................3
Answer to 1 (i).............................................................................................................................3
Answer to 1 (ii)............................................................................................................................4
Answer to 1 (iii)...........................................................................................................................8
Answer to 1 (iv)...........................................................................................................................9
Answer to 1 (v)..........................................................................................................................12
Answer to Question No 2..............................................................................................................13
Bibliography..................................................................................................................................19

3RETIREMENT AND ESTATE PLANNING
Answer to Question No 1
Answer to 1 (i)
Statement 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 $ $ $

4RETIREMENT AND ESTATE PLANNING
13,269.00 9,156.20 22,425.20
Answer to 1 (ii)
Statement Showing Accumulation of Income from shares
Ye
ar
Opening Balance Growth Accumulated closing
Value
20
17
$
100,000.00
$
6,000.00
$
106,000.00
20
18
$
106,000.00
$
6,360.00
$
112,360.00
20
19
$
112,360.00
$
6,741.60
$
119,101.60
20
20
$
119,101.60
$
7,146.10
$
126,247.70
20
21
$
126,247.70
$
7,574.86
$
133,822.56
20
22
$
133,822.56
$
8,029.35
$
141,851.91
20
23
$
141,851.91
$
8,511.11
$
150,363.03
20
24
$
150,363.03
$
9,021.78
$
159,384.81
20 $ $ $

5RETIREMENT AND ESTATE PLANNING
25 159,384.81 9,563.09 168,947.90
20
26
$
168,947.90
$
10,136.87
$
179,084.77
20
27
$
179,084.77
$
10,745.09
$
189,829.86
20
28
$
189,829.86
$
11,389.79
$
201,219.65
20
29
$
201,219.65
$
12,073.18
$
213,292.83
20
30
$
213,292.83
$
12,797.57
$
226,090.40
Statement showing accumulated Income From rent
Yea
r value of Property Rental Income
2017 $ 320,000.00 $ 16,000.00
2018 $ 332,800.00 $ 16,640.00
2019 $ 346,112.00 $ 17,305.60
2020 $ 359,956.48 $ 17,997.82
2021 $ 374,354.74 $ 18,717.74
2022 $ 389,328.93 $ 19,466.45
2023 $ 404,902.09 $ 20,245.10
2024 $ 421,098.17 $ 21,054.91
2025 $ 437,942.10 $ 21,897.10
2026 $ 455,459.78 $ 22,772.99
2027 $ 473,678.17 $ 23,683.91
Mark
Statement showing Accumulation and income in Superannuation Account