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ACBUS107A Financial Planning Fundamentals: Financial Goals

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After reviewing the summary FNA data, identify any further questions you would like to ask the client to assist in determining unidentified goals.  For each issue you would like further information on, explain why details on these issues may affect the recommendations.

While the client has specified some particular financial goals she wishes to achieve, from the data provided, what other goals do you think/can you identify that the client should try to achieve to improve their financial position?  In your answer, list all the goals from the Case Study and any others you can think of. 

Utilising the work done in class, and your answers from Q2, identify and prioritise your clients S.M.A.R.T goals including any goals you have identified from the client’s situation. ie Goal 1. should be the highest priority goal etc.

Utilising the work done in class, calculate the clients annual tax position for the current tax year, (include the Medicare Levy) to determine an after tax income for the client. Show working for the highlighted components below your table.     
Assessable Income     
    Salary    
    Bank Interest Received    
    Dividend Income Received    
    Add Franking Credits(30/70)    
    Other Income (if applicable)    
             Subtotal    
Less Allowable Deductions    
    Work Related Expenses    
    Interest Expense on   
             Subtotal    
Taxable Income    
     
Gross Tax Payable 1    
Less Low income Tax Rebate (2020/21) (if applicable)    
Add Medicare Levy    
Add Medicare Levy Surcharge (if applicable)    
Less Franking Credits (if applicable)    
Net Tax Payable    
After Tax Income    
Gross tax Payable:

Utilising the work done in class, the after tax income calculated in Q4, AND using the excel spreadsheet provided in the Moodle, prepare the clients (before budgeting):
a) Current Cashflow Analysis and 
b) Net Worth Statement.

Cashflow Analysis – Before Budgeting
    Current Amount p.a.
Income    
Your Total Gross Income     $101,310*
Your Total Tax Payable    
Your take home pay (Net)   
    
Expenses    
Debt repayments    
Mortgage / Rent    
Credit Card repayment    
Car Loan repayment    
Finance loan repayments    
Student Loan    
Other loan repayment    
Budget Period Total    
    
Utilities    
Telephone, mobile & internet    
Electricity    
Water and Sewer    
Council    
Other utilities    
Budget Period Total    
    
Insurance Premiums    
Life    
Auto    
Home & contents    
Health    
Other insurance premium    
Budget Period Total    
    
Miscellaneous    
Petrol (automobile)    
Car Registration    
Groceries    
Child Care    
Entertainment (movies dining out etc.)    
Clothing    
Credit Card Spending     
Commuting (parking etc.)    
Charitable Contributions    
Out-of-Pocket Medical Expenses    
Holidays    
Work Related Expenses    
Other miscellaneous    
Budget Period Total    
    
Saving Plans    
Savings & Emergency Fund    
Education Savings    
Retirement (Personal Super etc.)    
Med/LT savings plan    
Budget Period Total  

Using the same spreadsheet, prepare a Cash Flow Analysis for the next 12 months assuming the client will be prepared to follow a budget and limit her discretionary credit card spending.  Recalculate the Cash Flow Analysis planning for her to stick to a credit card spend of $700 per month to determine a new surplus/deficit. 

Cashflow Analysis – After Budgeting
    Proposed Amount p.a.
Your Total Gross Income     $101,310.00*
Your Total Tax Payable    
Your take home pay (Net)    
    
 Mortgage / Rent    
Credit Card repayment    
Car Loan repayment    
Finance loan repayments    
Student Loan    
Other loan repayment    
Budget Period Total   
    
Telephone, mobile & internet    
Electricity    
Water and Sewer    
Council    
Other utilities    
Budget Period Total  

Using the Cashflow Analysis spreadsheet on the Moodle (used in Q5 & Q6), prepare a:
a)  Cash Flow Analysis for the next 5 years, and a 
b) Net Worth Statement at the end of that 5 years. 
In this analysis, incorporate those recommendations that will assist the client achieve their goals.  Add any relevant notes to explain the timing of payments/savings, rates of return estimates and any other clarifying issues.

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