Newcastle Uni: Personal Finance and Wealth Planning Report

This report provides a comprehensive analysis of personal finance and wealth planning, focusing on a couple's financial situation. It covers key aspects such as inheritance through wills, income and expenditure management, and tax implications on investments, particularly capital gains. The report delves into pension schemes, including early retirement options and the management of pension funds. It addresses critical issues like life assurance, the 2015 pension freedom, and asset ownership, along with the consequences of early retirement. The conclusion emphasizes the importance of advance planning, proper will drafting, and timely tax remittances to avoid financial pitfalls. The report offers valuable insights into financial planning for retirement and beyond, making it a useful resource for students studying finance and investment management.

Personal Finance and Wealth Planning
Student Name
Date

INTRODUCTION
The report is base on:
 Inheritance of properties from the parents to their
children , spouses ,nieces, brothers and other
family members by having a will testament.
 Income and expenditure of the couple. That is
Richard and Stephanie.
 Investment Tax on the assets and liabilities of the
couples , their parents and children.
 Pension scheme for the couples and how it should
be managed in future when they retire.

1. INHERITANCE
 This is the a way of one owning the property of
another.
 This is shown in the context but not well
elaborated.
 In the report its well elaborated as it should be in
the normal circumstance.
 The inheritance is from the parents to the
spouses. The spouses themselves. The spouses to
their loved one.
 Inheritance facilitates reusability

2.WILL TESTAMENT
 A will is a document written to show how you
intend to pass inheritance from one class to
another or one generation to another voluntarily.
 You nee to write your will stating with “ Last will
and testament”.
 Write your full legal names and address.
 Designate an executor.
 Appoint a guardian. Designate the assets
 Sign and store your will safe.

3. INCOME AND EXPENDITURE
 Income is the money received on a monthly basis
for working or investments.
 Expenditure is the action of using what you have
earned from work or investment.
 In this context the spouse is working and they
spend all they earn.
 Its recommended that they should actually save
for eventuality or emergencies.
 Incase what you earn is not enough, one should
think of expanding their investments.

4. TAX ON INVESTMENTS
 This is the tax remitted to the government revenue
authority for investment incomes.
 On the sale of property, one should remit tax on
gain of sales of properties like house, car, land etc.
 This should be calculated on the latest government
tax rates on gain on capital investments.
 On the event of gain on income for investment
should also be summed up and calculated
accordingly.
 Stephanie should submit tax on capital gain after
selling her small flat.

5. PENSION SCHEME
 This is a fund into which a sum of money is added during
an employee’s employment years and from which
payment are drawn to support the person at his old age.
When he can’t do much.
 In our context Richard and Stephanie are in a
government pension scheme.
 They expect to be rewarded their fund which they have
been contributing at the retirement age of 60 years.
Richard is now 58 years and will be given his pension in
two years time.
 Stephanie want to retire early before the stipulated time
of 60years.

6.EARLY RETIREMENT
 This is actually leaving employment before the
stipulated time of 60 years given by the government.
 2015 pension freedom was introduced in 2015 April
to allow the employees access their defined
contribution pension before retirement age.
 This however seems to be a good idea but it has
coasted a lot of people for making wrong decisions
with their pension and regretting not having anything
at old age.
 It can be profitable if you make good choices with
the fund by investing on low risk business.

7.MANAGEMENT OF PENSION FUND.
 Before managing you have to plan.
 You cannot plan what you have not earned or saved.
 Richard and Stephanie are aware that they will
receive pension but they can’t tell how much they will
receive at 60 years.
 One need to plan after calculation and early planning
is the best scenario.
 Plan on investing the money on a short profitable
investment. If one cannot do investment, then plan
on how you will spend it wisely. And know the
duration it will take you to finish it.

8. ISSUES IN THE CASE STUDY.
 Will testament, inheritance and tax on capital
gain.
 Life assurance, 2015 pension freedom and
income and expenditure.
 Asset ownership, after retirement what next
and consequences on early retirement.
 Finally tax on capital investment.

9. CONCLUSION
 The report is concluded that planning in advance is a
good idea.
 Writing your will testament when you are sober is also
a good plan.
 Will can be adjusted when need arises. Re-written and
signed if need be.
 Assumption is not the best thing to do. This raises
more confusion if need arises or if accident occurs.
 Ensure correct and timely taxes are remitted to the
revenue authority to avoid loosing the asset and even
the whole investment.