Join our investing community

Kaplan SRP May 2010 Question 5a

Discussion in 'Financial Planning Study Group' started by llanfachreth, 19th Sep, 2010.

  1. llanfachreth

    llanfachreth Member

    Joined:
    11th Apr, 2010
    Posts:
    18
    Location:
    Manchester, UK
    Has anybody done this May 2010 version?

    I have calculated Michael's Age Pension entitlement as $136.31 under the income test and $387.69 under the assets test, with the smaller figure being the one used.

    When calculating this I used Karen's income of $35,000 and deemed income from their combined investments. I didn't halve the combined income as the example on the case study doesn't do this.

    Not sure whether this is right or wrong or how to check. Any help would really be appreciated!!!
    cheers
     
  2. Choc Chip

    Choc Chip New Member

    Joined:
    4th Jul, 2010
    Posts:
    3
    Location:
    Sydney, NSW
    Hi I got the following but could be wrong??

    Assest test $320.63

    Income test $91.20

    Also this doesn't include the pension supplement amounts

    I included Karen's income and shares, I am not 100% confindent that it is correct, if anyone out there knows please shead some light for us :)
     
    Last edited by a moderator: 19th Sep, 2010
  3. llanfachreth

    llanfachreth Member

    Joined:
    11th Apr, 2010
    Posts:
    18
    Location:
    Manchester, UK
    Hmmm I just thought, I forgot to include the payments Michael receives on retirement. I'll try it with that included.
     
  4. llanfachreth

    llanfachreth Member

    Joined:
    11th Apr, 2010
    Posts:
    18
    Location:
    Manchester, UK
    Nope, still don't get the same figure as you...
     
  5. Choc Chip

    Choc Chip New Member

    Joined:
    4th Jul, 2010
    Posts:
    3
    Location:
    Sydney, NSW
    I didn't include the payment either?? Does this need to be included?? Opps

    I used

    Assets
    Family car
    House contents
    Bank Account
    Cash management trust
    Shares
    Michael’s Super

    Income
    Bank Account
    Cash management trust
    Shares
    Michael’s Super

    Karen’s assessable income
     
  6. Choc Chip

    Choc Chip New Member

    Joined:
    4th Jul, 2010
    Posts:
    3
    Location:
    Sydney, NSW
    I have just recalculated using the payout as well and realised that I deemed the income incorrectly!!! SORRY

    Asset test $346.02

    Income test $129.82

    Amounts include pension supplement
     
  7. elodie86

    elodie86 Member

    Joined:
    11th Jul, 2010
    Posts:
    7
    Location:
    Brisbane, QLD
    Just had a little question about the claculation of the asset value of the shares : it says on the subject notes that the value of the shares can be obtained through financial newspapers so I went on the ASX website to get the daily value.
    Did anyone do that ? Because the assignment paper just gives us the cost per share not its value...

    Anyone could help if I'm not going in the right direction...:confused:
    Thanks
     
  8. llanfachreth

    llanfachreth Member

    Joined:
    11th Apr, 2010
    Posts:
    18
    Location:
    Manchester, UK
    I passed, but they did comment that I should have used current share values from asx.com.au
     
  9. Sophi

    Sophi Member

    Joined:
    12th Jan, 2010
    Posts:
    21
    Location:
    Brisbane
    I got some values from ASX some from elsewhere, but make sure you get the values from the same day.when you do you assignment put down that Assumptions used: share prices as at dd/mm/yr - kaplan likes everything documented. :) hope this helps
     
  10. Sophi

    Sophi Member

    Joined:
    12th Jan, 2010
    Posts:
    21
    Location:
    Brisbane
    hi guys, got my assignment back and is competent, this is what I did for Q5
    assets test: contents+car+bank account+Michael's super=total assets

    Deemed income on total assets
    $0 to $70,000 deemed at 2%
    $70,001 to $balance deemed at 3%
    Total deemed income: ......

    (464.20+42.30) – (total assets-252500)x(0.75/1000)
    Michael’s income under the assets test is $x/ fortnight

    Income test:

    Michael’s deemed income is $Xpa and Karen’s income is $Xpa, their combined income is $Xpa, which is $X/fortnight.

    I used couple’s rates as they are a couple, but not calculating Karen’s entitlement as she is not at age pension age.

    Pension entitlement:
    464.20 + 42.30 – [(fortnightly amount-248) x0.25]

    Michael’s income under the income test is $...../ fortnight.
    Michael’s pension = maximum pension per fortnight – income under income test

    whichever is the less this it was he gets as an income

    hope it helps :)
     
  11. Kellie

    Kellie Member

    Joined:
    19th Apr, 2009
    Posts:
    5
    Location:
    Sydney
    Help! I'm stuck on Q5b). I'm not sure if I'm on the right track.
    I need to resubmit my Q1, 5 & 6 :eek: I can't believe I have done so bad =(

    For Q5b) I assume the strategy to use is use the money in Michael's super to purchase an allocated pension in order to minimise income test?

    I can't think of another strategy, in my 1st submission i put down term allocated pension and term annumity but I've received my comment that they are no longer eligible in 2010 so they are invaid =(

    Also with Q1, is the answer something similar to :

    Total Tax payable on employer payment = $ 8,500 + $ 1,275 = $ 9,775 ?

    Net payment to be received = ($68,000 + $22,500) - $ 9,775 = $ 80,725 ?


    Any help would be so much appreciated !! So lost !
     
  12. gan

    gan New Member

    Joined:
    6th Apr, 2010
    Posts:
    4
    Location:
    Brisbane
    SRP May 2010

    Hi All,

    I'm starting on the latest version of the SRP assignment, and it looks like it may take a while! I have completed the other 3 subjects but not sure where to start with this one. Anyone want to toss a few ideas around?
     
  13. nicksykes

    nicksykes New Member

    Joined:
    4th Jan, 2011
    Posts:
    3
    Location:
    DUBBO
     
  14. HOCFP

    HOCFP Active Member

    Joined:
    29th Aug, 2010
    Posts:
    27
    Location:
    adelaide
    MAY 2010 SRP Assignment Question 2 HELP please

    I dont feel using online calculators is the approach for me, as it just confuses me more:
    .
    Although i have made some slight progress with the following:

    For estimating the capital required all i have done is added all there investment assets to get a figure. After I have multiplied based on karen's life expectancy lets say 24 years and multiplied this by there desired income to gain a figure. This figure I believe in a perfect world what they would need to have as capital.

    Now when analysing the gaps with what they have to what they need i have subtracted what they have to what they need and used that as a starting point to devise potential strategies around boosting thier super balances.

    My only concern with this approach is they have a gap of over 500k, surely that is not correct. I mean part of the remainder of the question states that we need to advise on different types of contributions to boost thier balances and also the age pension factors.

    Am i on the right track?
    [/B]
     
  15. Emrah97

    Emrah97 New Member

    Joined:
    4th Apr, 2011
    Posts:
    4
    Location:
    Melbourne, VIC
    KAPLAN Superannuation & Retirement planning assignment May 2010

    Hello,

    Im struggling badly with this assignment.
    I totally confused as to how to answer question 6.
    The more I look at this the more I want to cry.
    Can anyone help me with some guidelines or tips please?
     
  16. Emrah97

    Emrah97 New Member

    Joined:
    4th Apr, 2011
    Posts:
    4
    Location:
    Melbourne, VIC
    Passed first time... phew!
     
  17. ren

    ren New Member

    Joined:
    30th Nov, 2010
    Posts:
    2
    Location:
    Newcastle, NSW
    Emrah97.... I like you am, struggling with the SRP assignment.
    I see you ended up passing first time. Any tips/guidance for Q2 and 6 ?

    Cheers
     
  18. Pooja123

    Pooja123 New Member

    Joined:
    19th Jul, 2012
    Posts:
    2
    Location:
    sydney
    Q5.is it looking correct

    Their assessable assets when applying for benefits will be
    car 46000
    contents 43000
    Bank account 6300
    Michael Super 135500
    Total Assets 230800



    Deemed income on total assets
    $0 to $70,000 deemed at 2% 1400
    $70,001 to $balance deemed at 3% 4824
    Total deemed income: .6224 .....

    Income test:

    Michael’s deemed income is $6224 and Karen’s income is $35000pa, their combined income is $41224 p.a, which is $1585.54/fortnight.

    I used couple’s rates as they are a couple, but not calculating Karen’s entitlement as she is not at age pension age.
    Yearly income = $4911.49
    Fortnightly income = $4911.49/26 = $1585.84.f.
    Pension reduction = ($1585.54 - $248) x 0.25= $334.39
    Pension Entitlement= $464.20 + $42.30 – $334.39 = 172.11
    Michael’s income test = $172.11 p.f.
    i.e 172.11*26= 4474.86


    and what are the two acceptable strategies?help needed
     
  19. freddy

    freddy New Member

    Joined:
    25th May, 2011
    Posts:
    4
    Location:
    Australia



    are you using the deeming and assets threshold rates from the stundy notes or are you using the rates provided in the quick refrence guide jan-mar 12 that was provided with the study notes. and do you calculate the cash management trust funds?