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Superannuation & Retirement Planning - Kaplan STUDY FRIENDS NEEDED!

Discussion in 'Financial Planning Study Group' started by Megs, 26th Sep, 2009.

  1. Megs

    Megs Member

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    Hi There,

    Just found this forum and so so nice to find people who are studying the same course! I work full time and have a 8 month old little girl at home. Desperately trying to finish my last subject in Financial Planning Diploma - Superannuation and Retirement Planning. Would love to discuss some questions...

    Have made a reasonable attempt at answering parts of the assignment that I understood (am yet to start question 6 but am leaving till last in the hope that completing the other questions will help).

    Is anyone free for me to pick your brains regarding some of the questions???? Not after answers to questions - just guidance in the right direction..
     
  2. AsxBroker

    AsxBroker Well-Known Member

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    Hi Megs,

    Welcome to InvestEd.

    You'll find that many forum members will try to help you understand the concepts.

    Ask away.

    Cheers,

    Dan
     
  3. Jimm

    Jimm Member

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    Keen to help

    Hi Megs, I am aiming to have the assignment wrapped up by the end of the week. I will be working during the days (and night) and am keen to discuss some of the ideas.

    Let me know the specific areas you want to discuss.

    Jimm
     
  4. Megs

    Megs Member

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    Shall we start at the beginning...

    Hi Jimm,

    Hopefully we can both finish up this week (will be a huge weight off my shoulders!).

    As I said, I've gone through the assignment and answered the basic questions (ie. regurgitating the text in the workbook and answering all the "identify" and "explain" parts of each question).

    I'm now back at the start and going to go through the questions 1 through 6.

    Question One - I'm a little confused with what they want in this question.. Are they asking what Richard should do with just the termination payment? (ie. contribute to super/invest outside of super??) OR do they want us to explain options in regards to his TOTAL superannuation balance (ie. asset allocation/risk strategy, pension/accumulation options)

    Question 2 - Is there a formula/calculation in the workbook for working out the capital the client's will need to accumulate? Or do we use an online calculator for this?

    I think I'll finish these two questions and then move to the others...

    If you have any questions I'm more than happy to TRY to help!

    Good luck :)
     
  5. banana1

    banana1 Member

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    Hi both,

    question 1 is asking what his OPTIONS are with the ETP payment, so yes, can hhe put it into super, put it into his wifes super, leave as cash , invest elsewhere. etc.

    and in regards to super once he retires... what can he do with his whole super, i.e withdrawal it, leave as it, split it with wife. etc. just explain each option in a bit more detail.



    Question 2. I used the online calculator from fido. This is also suggested in the book. Just remember with the figures you plug into the calculator you explain why you have used those figures.

    Hope that helps. I recently got my assignment back and passed. yipee :)
     
  6. Jimm

    Jimm Member

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    Question on capital requirements

    Hi Banana1,

    Thanks for advice. Can I clarify an issue with you regarding working out their capital requirements.

    I would have thought that to determine the capital requirements to support a given lifestyle would depend on their: current super holdings, eligibility for social security and use of other assets outside super. I then see these issues are addressed later in the assignment and I think I am overcomplicating the question.

    Did you just look at what super they would need to support an income of $47,500, and use this as a basis to answer the question? Did you also calculate each person indivudually, ie assume each of them needs an income of 0.5*47,500=23,750?

    BTW, I also put a simpler version of this question to Kaplan a couple of days ago and as of yet have received nothing. Although they say responses can take 72hrs this is disappointing considering the amount we pay. Makes this blog awesome though.

    Cheers, Jimm
     
  7. banana1

    banana1 Member

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    Hi Jimm,

    Yeah Kaplan are shocking, I emailed them and the response I got was neither here nor there so I was no better off.

    Yes I think you are complicating things slightly. Dont worry about their eligibility for social security as you should only base it on their situation as of now.
    If you consider the following points you'll be right.
    > their life expectancy... will bernie need the full living exp when richo dies?
    > all their income sources, investments, super, bernies salary, bankaccounts etc. you need to think about which ones are you going to include and which ones arent u going to include. No right or wrong as long as you justify.

    "Did you just look at what super they would need to support an income of $47,500, and use this as a basis to answer the question?" .....Ummm..no. the calculator allows you to make the projection based on a 'couple' ..so no need to halve the 47500 as the calc does this foryou.


    Hope that helps somewhat :)
     
  8. BJMetallica

    BJMetallica BJ

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    Hi All,

    I have recently just completed a workshop for SRP so will try and help out where i can. the assignment is sort of bamboozling me also but i think someone hit the nail on the head earlier, as long as you cover ALL the bullet points in the questions you shouldn't go too far wrong....

    i also really want to get this wrapped up way before Christmas and if mad enough may even try and start IP1.....

    i have only just come across this forum and am impressed so far

    BJ
     
  9. jdf81

    jdf81 Member

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    Just found this forum too, looks good.

    Edit: Not need to worry about my question.
     
    Last edited by a moderator: 28th Oct, 2009
  10. BJMetallica

    BJMetallica BJ

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    this may be a really silly question, but in question 1, when you need to calculate the resultant tax treatment of the payment, i have been told to assume an MTR of 30% and justify why i am using that MTR because you cant calculate unless you assume an MTR.

    but would i just be using the bulk amount of all the payments and apply the normal MTR ?
    $0 to $6000 - nil, $6001 to $35,000 - 15% etc etc etc.

    BJ
     
  11. AsxBroker

    AsxBroker Well-Known Member

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    Hi BJ,

    The Marginal Tax Rate (MTR) is the tax rate paid on the last dollar of income earnt.

    Cheers,

    Dan
     
  12. BJMetallica

    BJMetallica BJ

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    on the last dollar of income earnt ? sorry i dont follow ?
     
  13. AsxBroker

    AsxBroker Well-Known Member

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    Hi BJ,

    If your taxable income is $40,000 your MTR is 30%
    If your taxable income is $85,000 your MTR is 38%

    etc.

    Cheers,

    Dan
     
  14. BJMetallica

    BJMetallica BJ

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    right, got ya, thanks Dan
     
  15. H20

    H20 New Member

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    Question Thre...

    Hi

    I am currently completing the assignment for Super.

    I'm not sure if I'm missing something on Question 3...but given that Bernadette's MTR is 15%, and she does not want to reduce her working hours, isn't a TTR strategy rather pointless?

    Or am I missing something very obvious?

    Thanks in advance :)
     
  16. Jimm

    Jimm Member

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    You are right, the strategy is pretty marginal. The question wants you to work through the process to show you understand how it works
     
  17. H20

    H20 New Member

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    Thanks Jimm! Nice to have confirmation :)
     
  18. BJMetallica

    BJMetallica BJ

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    does anybody know how the deeming works with one couple of retirement age and one still working ?

    are they considered a non-pensioner couple ?

    i am presuming that her wages would have to included as income also ?
     
  19. BJMetallica

    BJMetallica BJ

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    dont worry, have worked it out..... those lovely people at Kaplan steered me in the right direction..... an email response only took about 2 hours !!
     
  20. Hogboy

    Hogboy Member

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    G'day all, first post. With regard to question 6. There asking what to do "now she wants to retire at 65" In the information at the start she's 62 and retiring in 3 years, 65. Am i missing something? Rang Kaplan got nothing, pretty piss poor i reckon. Appreciate any information.
    p.s. How many pages should this be?