Personal financial planning Essay Example | Topics and Well Written Essays - 1500 words

Personal financial prep - raise ExampleBriefly explain what options are available to Jack with respect to the payment he volition receive upon termination of his employment, including his superannuation balance. Calculate the resultant tax treatment of the payment with respect to those options.One of the trump out options jack could plan is to pay a small amount of future pre-tax salary to the investments. The plan for much(prenominal) investments would also help to pay for personal insurance to protect the family income.During this period Jack would have fall out of deposits amounting to $ 8000 and the return from superannuation as $ 1350. This could be deposited on long term basis and as the 7 years are completed the amount could be added with the Marions return to meet their living expenses.At the present rate both Joe and Marion would require $ 55,000 to lead a very comfortable life. If this is the amount that the couples expect after their retirement then the they must h ave accumulated saving of $137500 at 4 % interest per annum. Their total nest egg is estimated as 4,36,000/- which doesnt include the superannuating benefits of both Joe and Morion.Even if these aspects are reputationed the current position would be enough if they expect to fight down in the same manner in future. The cost of living certainly would enhance and hence the gaps that inhabit between the current estimate and actual expense in future would be very huge.The major(ip) benefit of transformation to retirement provision is to receive a part of superannuation as pension off while being involved with it. It would help to sail smooth into the retirement period while enjoying rough tax related concessions available to pensions. The guideline for opting the transition to retirement varies from one scheme to another. As an example, almost of them specify that ones preservation age must be below 65 years and continues to be in workforce. And the government might not have speci fied the minimum or maximum hours that you might be working. One could collect the super as non-commutable account based pension. In some situations, the account holder is allowed to take a maximum of 10 percent only while being in a transition period. A minimum account balance, say $ 25,000/-, is to purchase some of the products designed for transition to retirement. Also, certain stipulations like minimum account balance of $ 1000/- is required in the account. Part DDescribe two current legally accepted strategies that could be employed by the couple to modify them to maximise any Centrelink benefits in their final retirement.The important areas that could be employed by the couple for planning the post retired life areAge pension This can chosen based on the passport age and also on certain test conditions like asset and income test. Allowances are related to the flock who are not presently in the workforce.Commonwealth Seniors Health Care Card is anothet option for those who proceed to qualify for the senior health care card. Part EIdentify the two methods of nominating a donee for superannuation members and the advantages and disadvantages of each. Outline the tax treatment of superannuation lump sum death benefits