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Superannuation and retirement planing KAPLAN

Discussion in 'Financial Planning Study Group' started by neerock, 23rd Jun, 2009.

  1. neerock

    neerock New Member

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    Is there anyone who is doing this assignment and want to discuss, I need some help on Q2 Q5 AND Q6...
     
  2. Nigel Ward

    Nigel Ward Team InvestEd

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    did the subject some time ago...what are your queries?
     
  3. neerock

    neerock New Member

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    Specially for Q5 CMT funds and how to calculate part pension?
     
  4. BB**

    BB** Member

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    vic
    super (kaplan)

    Hi

    I am doing this (kaplan assignment)
    are you doing the latest module from Feb 09?
    what help do you need?:)
     
  5. neerock

    neerock New Member

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    Great i am doing the same ...
    How you going with quetions?
    Maximising super through supperannuation contribution strategies in Q2 do we need to include this in Q6
     
  6. BB**

    BB** Member

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    Super & Retirement Planning Q's


    Hi

    sorry for my late reply, if you want to talk, email me direct cause I don't look on here reg enough

    Q2 is asking you to list the different ways that they can maximise their super balances i.e super spitting, co contribs, salary sacrifice, any personal contribs etc - all the various ways that you can maximise your super, list them and explain the reasons why its relevant to them or not, (as the case may be) as it asks in the question

    Q6, you are buliding a recommendation strategy on what you believe they should be doing with Richard retiring and Bernadette continuing work. So yes you need to work out whether she should salary sacrifice? government co contribs, personal contribs etc, where his ETP should go? what to do with all that money in the bank? This does follow on from Q2, but its more you're recommendation as to what they should do with their funds now.

    Q5, there is a part within the book that shows you how to do the calculation for the assets and income test and what centrelink pension they would be entitled to. follow that and you can't go wrong, remember to read the question fully to be able to answer the question how they want it answered. I'm not being a smart a@@ I've just learnt the hard way!

    I find that you must really read their questions and make sure that you fully answer what they are asking for. everything should go in there that has any relevance.

    hope that this assists

    kind regards
     
    Last edited by a moderator: 3rd Jul, 2009
  7. Mozzzza

    Mozzzza New Member

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    for BB!

    Hi BB!
    I'm doing the exact assignment now and am quite stuck on q 6!
    I'm not sure what startegies to recommend - I tried the TTR, but Bernadette is only earning 26k, so its not worth it for her to salary sacrafice her income since she'll be taxed on the way in at 15% and to draw on an allocated pension.
    All the other options ie: super splitting, super transfer, gifting will help increase Richard's age pension slightly, but will still not cover the shortfall (which I've calculated is 8 years @ $47500 pa)
    Any suggestions? how should I tackle this??
    Thank you so much!
     
  8. BB**

    BB** Member

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    how are you getting on mozz
     
  9. Jimm

    Jimm Member

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    Srp Q2

    Hi, can someone let me know what method we are meant to use to estimate the total capital they need to accumulate. Did you use an online tool (such as fido.gov.au) or is there a manual way?

    Thanks, Jimm
     
  10. banana1

    banana1 Member

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    Hi Jim, I used the calculator on fido. Thats also the recommendation mentioned in the book.
     
  11. BJMetallica

    BJMetallica BJ

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    Gold Coast, QLD
    Hi Jimm,

    i believe you can also refer to the method used in ELC Mod 7 to calculate a client annual income req in retirement..... the ANZ Super simulator is another tool our workshop tutor told us to use as it is straightforward and easy to use...

    BJ
     
  12. keshni

    keshni New Member

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    Brisbane, Qld
    Hi, need help in Q1. Richard is 66 so he has no tax on lump sum or TTR or roll overs correct or am I wrong ?
     
  13. chelseaC

    chelseaC Member

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    Melbourne, vic
    Hi, Guys,
    I need help on Q2. I used the retirement calculator on FIDO, but I can't work out total capital needed at their retirement to meet their goals. Which index in the calculator does show the total capital amount needed? Tks for your help.

    Chelsea
     
  14. plan

    plan Active Member

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    There's a Total amount below the first graph. You can also use Excel to calculate. Its a rough figure. Just explain the assumptions made. Can't go wrong with this part of the question.
     
  15. chelseaC

    chelseaC Member

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    hi plan,
    If i don't misunderstand, "Your total income payments (today's dollars)" showed under the first graph displays the total capital amount? it is over 3.1 millions? too big! I showed this figure in my first submit, I also made clear all related assumptions i made in the calculation. But i was told it was wrong. So i am confused!

    other than, regarding the gap between the capital requirement and actual condition, how did you analyze?

    could u give me more clear guidance?

    tks
     
    Last edited by a moderator: 12th May, 2010
  16. plan

    plan Active Member

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    nsw
    Hi Chelsea,

    Yeah...that's a large amount. Can you tell me what you included?

    It should be based on how much they will need for living expenses while in retirement, no. of years in retirement, what they have in Super (play around with this figure to get an estimation - i.e, the graph should show they are receiving the require income throughout retirement). Its just an estimation. Hope this helps.
     
  17. yipper

    yipper New Member

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    16th Jun, 2010
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    Superannuation assignment q3.

    Hey guys, this is my first time here and any help would be greatly appreciated. I have recieved my assignment back and I am just not getting the points I need to cover. They have suggested I need to focus on contributions tax, medicare, her investment income and tax offsets and credits.

    My submitted answer is below: (I just am having trouble with the TTR strat)

    Bernadette can utilise the transition to retirement strategy to increase her superannuation balance in the final years of her working life.

    If Bernadette did not implement this strategy her financial position would be as follows:

    Without TTR

    Income (gross) $26,000

    Tax payable + medicare levy $3,300

    SG contribution $2,340

    Contribution tax (15%) $351

    Increase to superannuation $1,989

    Income (net) $22,700

    Bernadette would pay tax and medicare of $3,300 throughout the year as well as receive $2,340 in SG contributions from her employer. This leaves a salary of $22,700 net for Bernadette.

    If Bernadette implemented a TTR strategy her financial position would be a follows.

    With TTR

    Income (gross) $26,000

    SG contribution $2,340

    Contribution to Superannuation $20,000

    Contribution tax (15%) $3,351

    Increase to superannuation $18,989

    Remaining income $6,000

    Pension 8.5% of Superannuation balance $16,707

    Income (net) $22,707

    I would recommend Bernadette implement a TTR strategy and contribute a concessional contribution of $20,000. The first $6,000 earned is tax free therefore this makes no sense to have this taxed at 15%.

    As a result of transitioning to a TTR strategy Bernadette has increased her superannuation balance by $18,989 compared to $1,989 if she did not proceed with this strategy. However to ensure that Bernadette can maintain her standard of living it is important to draw a pension from the super balance. I have assumed she draws 8.5% of her super balance ($196,550) to enable she maintains her current income. This ensures she draws an income of $6,000 salary + pension of $16,707 = $22,707.

    This results in a net increase to her superannuation balance of $2,282 ($18,989 - $16,707) by implementing the TTR strategy. This compares favourably with the option of doing nothing as the increase to superannuation is $1,989. Therefore the net increase of the TTR strategy to her super balance in year 1 is $293*.

    *These calculations do not factor in the impact of the low income rebate. This rebate allows an individual to earn up to $15,000 before having to pay tax. $6,000 is the first threshold on our marginal tax rates. The $293 figure has not factored in the low income rebate, the benefit of the TTR strategy will be slightly less once it has been.

    This strategy clearly has advantages for persons on higher marginal tax rates as the difference between the superannuation tax rates and those MTR provide greater savings within superannuation.