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Risk Management Case Study

Discussion in 'Financial Planning Study Group' started by bubblebobble, 18th Feb, 2010.

  1. bubblebobble

    bubblebobble Member

    Joined:
    30th Nov, 2008
    Posts:
    9
    Location:
    Perth
    Just wondering if anyone can help.

    I'm doing a CIMER plan for Simone. In working out her income I'm not sure how to treat the income from the Investment Property as it should be negatively geared, having trouble coming up with the right figure for her net income given tax treatment.
     
  2. red85

    red85 Member

    Joined:
    2nd Dec, 2009
    Posts:
    12
    Location:
    Brisbane
    I only included her salary in the "I" part of the CIMER plan. Did not include rental income at all. You only need to use info that is given to you, don't think too in depth. They mainly want to know your logic rather than arriving at the right answer.
     
  3. jaidiv

    jaidiv New Member

    Joined:
    8th Apr, 2011
    Posts:
    2
    Location:
    sydney
    hi.. query on case 1 RM

    Hi... I saw your reply sent to a seeker on information like me. Can you please help me. As when I submitted my case 1 they are asking for Husband's insurance. Also do I need to show any calculations related to funding for her children's edu. ?

    Thanks.






     
  4. 1975faz

    1975faz New Member

    Joined:
    3rd Nov, 2010
    Posts:
    4
    Location:
    Perth, WA
    I am as well confused with the case study. First time I've had something knocked back from them as I didn't do any calculations or assumptions. They gave me 16 then scribbled it out and downgraded it to 14.

    I am confused with the following (I am more than likely over analysing it):

    1. Did anyone do a complete tax analysis or just base it on the $145,000 (excluding bonuses or with the bonuses) with a simple calculated net income amount?

    2. With savings capacity, am confued with annual living costs. I have only based it on $36,000 + $4,800 Mothers allowance? I have only used a net income figure baed on the $145,000. Am unsure with investment unit outgoings and repayments. Simone may have already insurance to cover these amounts. I have ignored car lease as it has lease protection insurance.

    3. CIMER have assumed payout of loans is with Simone as sole income earner. The C section covers her equity loan whilst M section covers unit mortgage.

    4. Income have assumed its just $36,000 only for general living costs with mother's allowance added on with education amount for generating income. Assumed no husband shortfall, no earned income.

    5. Husband CIMER calcs a bit confused for income section. Would they take out a joint insurance policy?

    If anyone give me some advice I would appreciate it. I can give assistance with the rest of RM or FFP assignments if anyone needs some further help with their studies!
     
  5. Chandhani2012

    Chandhani2012 Member

    Joined:
    14th Apr, 2012
    Posts:
    10
    Location:
    Sydney
    Hi,
    My confusions match with few of your queries above. Hope you have completed and passed the assignment by now. Will you guide me solving few of my queries? :)