Personal Financial Palnning

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Part A A1 Current monthly income and expense budget for Matilda Current monthly income budget | | $ | Wages and Salaries (85 hours per month @ $30 per hour) | | 2550 | Total income | | 2550 | | | | Current monthly expense budget | $ | | Rent | 900 | | Public transport fairs | 160 | | Food | 500 | | Utility bills | 130 | | Entertainment | 300 | | Mobile phone | 60 | | Clothing | 50 | | Miscellaneous expenses | 100 | | Total expenses | | 2200 | | | | Savings (per month) | | 350 | A2 Matilda’s goals and objectives on timelines Timeline 1: Goal of travelling overseas in 3 years when she finishes her degree Month | 0 | 1 | 2 | 3 | …… | 34 | 35 | 36 | Cash flows…show more content…
Once she starts working full-timely, she invests in the shares, managed funds and bonds. The returns and savings would be helpful in accumulating capital before she buys the property after worked for 5 years. A5 Issues that Matilda needs to consider: * How much is the cost for each of her current superannuation accounts? * How many prospected benefits would be brought by each account? * Which account is her employer currently contributing to? (Things to consider before consolidating, 2013) * Will any loss incur if she quit some of the super accounts? * How much are exit fees and entry fees? * What are the tax implications of transferring? * Which one of these current accounts is the most suitable for her? Advice I advise that Matilda could consolidate her superannuation accounts. Multiple superannuation accounts make her pay more than one set of fees. It also influences her choice of the most appropriate investment strategy for all of her retirement savings. By consolidating these accounts, she just needs to pay one set of fees. She would receive only one statement and it is easier for her to keep track of her retirement savings. (Consolidating your super, 2012) Part B B1. Risks faced: * Joseph and Christina may be ill; * Lose income because of illness; * Premature death, critical illness and disability; * Risk of inability to pay off debt; * Risk that

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