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Finance and mortgage broking management Essay Example
- Category:Finance & Accounting
- Document type:Assignment
- Level:Undergraduate
- Page:1
- Words:295
Background:
Joe and Carol Thomas have partially completed their personal budget (these details have been populated in the budget which you have downloaded).
Additional Information:
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Principal place of residence – Value $400,000
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Superannuation – Current value $60,000
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Home Loan on Principal Place of Residence — $245,000 (Variable Interest Rate 7.45%). Currently they have a Redraw of $4750 on this loan.
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Credit Card Limit — $20,000 (current balance $13,500)
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Car Lease – Balance $12,000 (2 years remaining with Residual)
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Children – ages 2 years and 4 years
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Their primary goal is to start saving for their children’s high school education at a private school. They estimate this will cost them $70-$80,000.
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They are finding they are not saving any money and actually run short some months. They currently have $6,000 in shares and $4000 in a savings account for emergency expenses.
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Carol and Joe do not have any life insurance, disability cover or a will.
Question 1
Complete the budgeting tasks
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Calculate the Net income – you will need to calculate the net income based on the gross income provided. Assume with tax free threshold and no leave loading. The ATO website will assist with calculations – www.ato.gov.au
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Gross Annual Income
Annual Tax
Net Income
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Add the following expenses to the client budget for Joe and Carol. Calculate the annual expense for the following:
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Monthly Plan and Usage
Annual Expense
Internet
$60.00 per month – fully utilised
Mobile Phone (1)
$80.00 per month – plan 50% utilised
Mobile Phone (2)
$40.00 per month – plan 20% utilised
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What is the annual net surplus or deficit income for this household?
$________________ Net Surplus/ Net Deficit
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