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Kaplan SRP May 2010 Assignment Question 5

Discussion in 'Financial Planning Study Group' started by kwakker, 21st May, 2012.

  1. kwakker

    kwakker Active Member

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    Location:
    Sydney, NSW
    Hey,

    Like many people on this thread I have a few questions in relation to the SRP assignment for Michael and Karen.

    For question 5a I was wondering if we only need to calculate the Age Pension entitlements of Michael (seeing as he is the one who is retired and Karen is still working)?

    I know we're to calculate it all based on their current situation when Michael retires, however I was wodnering if we only need to do it for when Michael retires, or do we need to do a running calculation for every years Age Pension entitlement for both Michael and Karen until their life expectancy?

    All help is appreciated.

    Kwakker
     
  2. snazzy

    snazzy New Member

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    Melbourne
    Hi kwakker,

    RE: 5A, looking at the table in our notes (5:3), Karen is not eligible for Age Pension yet due to her age. I guess you could make a mention on this in the question? I haven't, but I suppose it might be worth mentioning that until she is age ... she is not eligible for Age Pension.

    For Q5, I have only calculated the figures based on their current situation.
    I'm still going through Q6 at the moment, assignment is due on Monday :eek:, I'm not sure about calculating Age Pension entitlements until life expectancy?

    Cheers,

    Snazzy
     
  3. kwakker

    kwakker Active Member

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    Location:
    Sydney, NSW
    Thanks for replying snazzy.

    I understand that Karen is not entitled to the Age Pension as she is not yet of age and did make a mention of it.

    In the end I just calculated Michael's Age Pension entitlements based on the current situation for year in which he retires only. I was a bit confused as to how to include Karen's employment salary under the income test, however thanks to the trusty old internet I managed to find some info about it all.

    One thing I wouldn't mind knowing is how to easily calculate the Age Pension entitlements for their life expectancies (which will help towards cashflow in question 6). So far I'm using excel and having to adjust at every year.

    Also what capital requirement did you get? From all the posts I've read on here I'm either roughly spot on or way off. I got between $600k - $800K shortfall.

    I don't know about you but I keep finding all little things that I need to add in to make sure I answer each question entirely. I really don't want to have to resubmit this assignment after the shocking way Kaplan handled my last assignment. I had a few questions marked incompetent when in fact they were competent. It only took about 2 months to fix that error.

    So far I have done about 27 pages, but that's me over doing it a bit and trying to make sure I cover every possible angle. How much do you have?

    kwakker
     
  4. snazzy

    snazzy New Member

    Joined:
    28th Oct, 2011
    Posts:
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    Location:
    Melbourne
    Hi kwakker,

    I'll PM you my email, shoot me an email and we can discuss if you like?!
    My assignment is due on Monday so I'm crazily trying to finish off Q6!

    Snazzy