Assignment 2: Strategizing Superannuation

The Australian health care system is not a very complicated one, it is solely based on two main sectors which are the ‘public’ and ‘private’. The public sector allows one to claim health care benefits and payments through the universal health coverage developed by the Australian government, called Medicare. Medicare is completely free and paid by the government through income tax received to help pay for medical, optical and hospital care (Humanservicesgovau, 2016). It also has a sub-division called the ‘Medicare safety net’ which is more so given to those on significantly low incomes to aid in financial distress. Similarly, the private sector is made up of different companies entitling different benefits, usually consisting of two plans, ‘hospital’ and ‘generic’ (Privatehealthgovau, 2016). The private health care system is more so for people who need immediate attention as the public health system has a waiting list for many different types of operations. Private health system is also customisable in circumstances such as

The one financial goal that I plan to accomplish within the next two years is to buy a house. The first resource on achieving this goal that I would change is to take my food to work everyday instead of eating out. Another resource that would help me stay focused is by getting a check register book to help me keep track of what I am spending on a daily basis. I expect to put four hundred fifty dollars in savings every two weeks to help me save for my dream home. Minimizing my wants and only buying my actual needs will make an enormous difference. Within the first year of savings my goal is to have a nice down payment of $10,800. During the approach of the second year, I would look for a home that is in the price range of $80,000-$100,000 and

The impact of all of these options are huge because they affect every American. The options provided here are the 6 biggest options when it comes to Social Security. Now that everyone knows what might happen, lets talk more about the when. In 2010, the amount of money coming in was to small to pay back to people. Interest from the trust bonds was collected to help aid in maintaining full benefits. As a temporary solution, shaving the interest off the bonds would have been a great fix, but the original problem still exists. Nothing has been done to balance the money in to money out ratio. Unless Congress makes some big calls, in 2020, the SSA will be forced to sell their bonds. With the interest already being collected, and now the bonds being sold, the amount of money earning interest would severely drop.

John and Janet Baker are husband and wife and maintain a household of 7, including Janet and John. Calvin and Florence Carter are Janet’s parents, who are retired. During the year, they received $19,000 in nontaxable funds (disability income, interest on municipal bonds and Social Security benefits) from which $8,000 was equally spent between them on clothing, transportation, and recreation. The remaining $11,000 was invested in tax-exempt securities. Janet Baker paid $1,000 for her mother’s dental work and $1,200 premium on her father’s own life insurance policy. Janet’s father,

-Spouse B’s $8,000/month for 11 months of income from work because these are taxable wages that are paid to Spouse be for employment.

The other option afforded to the Ouray’s is to file separately as a married couple. Filing separately can be advantages under special circumstances. However, if the couple was to file separately, there are several restrictions. First being, that if one spouse cannot demonstrate more than one-half of a child’s support is provided by them, a multiple-support agreement must be filed. Next, if one taxpayer itemizes their deductions they must both take itemized deduction and same goes if one person takes a standard deduction, the other must as well. If filing status was to be separate, neither spouse can claim the earned income credit and the credit for child and dependent care expenses. Next, no deduction is allowed for the interest paid on educations loans, and only $1,500 of excess capital losses can be claimed by each person.

Our paychecks are direct deposited into these individual accounts. We also have a joint savings and checking account. This joint savings is our emergency fund. The joint checking account is our “family fun fund”, which covers miscellaneous family activities, vacations, and holiday/birthday expenses. My husband has a full time job so he covers the big-ticket expenses such as our mortgage, insurance, transportation, clothing, and daycare expenses. The one benefit of the Coast Guard’s pay system that we take advantage of is allotments. Through an allotment, my husband can automatically direct a portion of his earnings each month to our joint savings account and our children’s college saving accounts. He also uses an allotment to direct funds to our Thrift Savings Plan for our retirement savings. It’s a quick and easy way to ensure our future is secure without much effort. When my husband’s paycheck is deposited, he uses that money to cover his portion of our expenses. Half of any funds that are leftover are deposited into our joint checking account and he keeps the rest. My paycheck is not nearly as big as my husband’s; therefore, I am responsible for only utilities, cable, internet, and groceries. Like my husband, I direct half of any leftover money each month to our joint checking account. Fortunately for me, attending college does not create a financial burden because my tuition

After one year, all superannuation strategies offered returns between -0.20 per cent and 0.15 per cent, and are exemplified in the graph below (Figure 4).

My parents receive an earned income, meaning they work for it, unlike unearned income like child support and disability. My mom works as a Human Resources Director; she over sees all investigations in her facility and hires and fires people. My dad works as an Operations Sales Manager, so he over sees all of the different sales. They both have salary wages, so their income isn’t based on hours.

There are over a million residents living in Rhode Island between the ages of 21 to 65. The majority of the Rhode Island population is not employed by the state nor does an individual concern oneself with state issues (Randazzo, 2013). The Employee Retirement System of Rhode Island (ERSRI) was originated to cover state employees and teacher’s retirement, disability, survivor, and death benefits (Randazzo, 2013). In 1987 and 1989, the State Police Retirement Benefits Trust and the Judicial Retirement Benefits Trust were established (Randazzo, 2013). All pension plans in Rhode Island are managed by the state and the funds are commingled for investment purposes in determining the actuarial value

His annually income includes $65000 from self-employed business and $20000 from part-time job totally worth $85000. After contributing to superannuation, the taxable income is $80000; there is no Medicare levy since they have private health insurance. So the total tax is $17550, his take home income is $62450. Her take home pay is $601*52 equals $31252 per year, which is after tax amount. So their total take home income is $93702 per year ($7808.5 monthly)

Superannuation is when portions of an employee’s earnings are paid to a specified fund by the employer at least every three months. When the employee has reached retirement age and is no longer working full time, they can receive this money either as a lump sum or in the form of a pension to support them in their old age. As an employer, you will need to make this payment on behalf of your employees and yourself.

Super funds are either accumulation funds or defined funds, accumulated contribution funds are the most common type of superannuation fund and they act as a bank account, however the benefits made by them are not capital guaranteed which means that the benefits may be depreciated due to negative investment returns. These are the sorts of investment risks that comes with superannuation. Administration charges, policy fees, insurance premiums and taxes are deducted from members account. Defined benefit funds are based off a formula using the member’s final salary and the years of their employment. This fund also holds investment risk as if the investment is too high the amount that the employer is required to contribute to the fund can reduce and contributions may not be needed.

a. For instance, for the best case scenario, a married couple with two children and a single earner receives only 4.74 percent if the earner was born in 1932 (Heritage Foundation, 2000).

First we need to get the present value of the annuity for the 1,500 semiannual PMTs at year 14