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personal financial planning (Individual Project)
Pages 6 (1506 words)
Briefly explain what options are available to Jack with respect 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 amount of future pre-tax salary to the investments.
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 the they must have accumulated saving of $137500 at 4 % interest per annum. Their total savings is estimated as 4,36,000/- which doesn't include 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 transition 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 one's preservation age must be below 65 years and continues to be in workforce. And the government might not have specified the minimum or maximum hours that you might be working. ...
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