Finance and Accounting Essay: Personal Finance

Finance & Accounting
Pages 12 (3012 words)
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Personal Finance Table of Contents 1. Current Situation 3 2.Objectives and Goals 9 3.Analysis and Problem Identification 9 4.Strategies and Recommendations 10 Overall Recommendations 13 Overall Improvements 13 1. Current Situation An integral part of knowing what an individual would like to attain is identifying his/her current position.


1.1. Personal Details Name of Client: Joan Waterson, DOB: 01/01/1961, Age 51, Status: Single. 1.2. Value of Shares The Share Portfolio of Ms. Joan Watterson comprises of 2500 Telstra & 1000 AMP shares which she has been holding for more than a year. However, it may be noted that Ms. Watterson is not a very keen equity investor and theses investments were accidental. The Capital gain that Ms. Watterson can earn (if these shares were sold now) is equivalent to $3000. Company Numbers of Shares Share Price (as on April 27, 2012) Value of Shares Telstra 2500 3.511 8775 AMP 1000 4.252 4250 All shares were bought and have been held for over one year. The total value of shares: $13025. Telstra paid dividend worth 0.14 (both 100% franked)3 twice during last one year, which is the period Ms. Watterson was holding its 2500 shares. During the same period, AMP paid dividend worth 0.15 (30% franked) and 0.14 (50% franked)4. We can compute the franking credits for Joan Watterson as follows: Franking Credits = Dividend * (3 / 7) * Franking Percentage5 Franking credits for Telstra = $300 and Franking credits for AMP =30 + 19.28 = $49.28 Total Franking Credits = $349.28. 1.3. ...
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