Financial Planning Issues - Essay Example

2.2 Needs of the client: The needs of any client are about setting lifestyle goals. To set a goal better than now and to sustain it. Clients Gavin and Joanne have a kid going to school and soon enter college. They have two homes one for each and a loan to repay. This makes them compulsory to plan the regular income to pay for the college of their kid in the future and to pay the bank loan on the home they own without disturbing the superannuation outcomes. This requires contingency planning with the available income. For this purpose, the incomes of Gavin and Joanne should be taken into consideration. This requires new investment in superannuation, income protection, and insurance schemes. It is better to have returned by the time of their son entering college to make him enable to study without working part-time.
2.3 Superannuation ending in June 2007: They are trying to contribute to superannuation to escape tax paying. By the year ending with June 2007, the superannuation funds are 2, 30,000 and they cannot be moved according to Gavin and Joanne’s intention to escape the tax net. Instead of taking them out, they can continue paying for it for one more year. By the year ending with June though, there are superannuation funds to come, they cannot be utilized for their payments as they can be deposited for one more year. This will give exemption of tax for an amount of $25,000 by contributing to superannuation. This puts the exemption amount at $35,000 from the amount of $2, 30,000. The tax they have to pay on it will be $15,000. This will result in the contribution of the superannuation fund at $2, 15,000.
While investing in superannuation funds, one can find the members who lost the funds as they are listed with the Australian Taxation’s office. $7billion is reported lost according to that register maintained by the government. As it is available to all the users, the investors can find out the members who lost the funds and can avoid investing in them. By using the ATO website, the investors can find the entitlements about the assets. There is a number of online tools are present to check the entitlements and the lost funds. By using your tax file number and date of birth, your file can be found and searched for entitlements or any loss. By knowing any loss in the superannuation funds and the reasons for the lost $7billion superannuation funds, the investors can avoid the companies that follow the same way as the lost members.