Personal financial planning Essay Example | Topics and Well Written Essays - 1500 words

Personal financial innovationning - Essay ExampleBriefly explain what options be available to Jack with paying attention to the payment he will receive upon termination of his employment, including his superannuation balance. Calculate the resultant tax treatment of the payment with respect to those options.One of the best options jack could plan is to pay a small issue forth of future pre-tax salary to the investments. The plan for such investments would besides help to pay for personal insurance to protect the family income.During this stop consonant Jack would have return of deposits amounting to $ 8000 and the return from superannuation as $ 1350. This could be deposited on long term basis and as the seven years are completed the amount could be added with the Marions return to meet their living expenses.At the present rates both Joe and Marion would require $ 55,000 to lead a very comfortable life. If this is the amount that the couples expect after their retirement then t he they must have accumulated saving of $137500 at 4 % interest per annum. Their total savings is estimated as 4,36,000/- which doesnt intromit the superannuating benefits of both Joe and Morion.Even if these aspects are accounted the current position would be enough if they expect to support in the same manner in future. The cost of living certainly would enhance and hence the gaps that exist between the current estimate and actual expense in future would be very huge.The major benefit of regeneration to retirement provision is to receive a part of superannuation as pension while being involved with it. It would help to sail smooth into the retirement period while enjoying some tax related concessions available to pensions. The guideline for opting the transition to retirement varies from one scheme to another. As an example, some of them specify that ones delivery age must be below 65 years and continues to be in workforce. And the government might not have specified the minimu m or maximum hours that you might be working. One could collect the super as non-commutable account based pension. In some situations, the account holder is allowed to pose a maximum of 10 percent only while being in a transition period. A minimum account balance, say $ 25,000/-, is to corrupt some of the products designed for transition to retirement. Also, certain stipulations like minimum account balance of $ 1000/- is required in the account. Part DDescribe 2 current legally accepted strategies that could be busy by the couple to enable them to maximise any Centrelink benefits in their final retirement.The important areas that could be employed by the couple for planning the post retired life areAge pension This can chosen based on the qualifying age and also on certain test conditions like asset and income test. Allowances are related to the people who are not presently in the workforce.Commonwealth Seniors Health parcel out Card is anothet option for those who fail to qu alify for the senior health care card. Part EIdentify the two methods of nominating a beneficiary for superannuation members and the advantages and disadvantages of each. draw the tax treatment of superannuation lump sum death benefits