Finance and mortgage broking management Essay Example

finance and mortgage broking management

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:

  • Principal place of residence – Value $400,000

  • Superannuation – Current value $60,000

  • Home Loan on Principal Place of Residence — $245,000 (Variable Interest Rate 7.45%). Currently they have a Redraw of $4750 on this loan.

  • Credit Card Limit — $20,000 (current balance $13,500)

  • Car Lease – Balance $12,000 (2 years remaining with Residual)

  • Children – ages 2 years and 4 years

  • 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.

  • 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.

  • Carol and Joe do not have any life insurance, disability cover or a will.

Question 1

Complete the budgeting tasks

  1. 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

Gross Annual Income

Annual Tax

Net Income

  1. Add the following expenses to the client budget for Joe and Carol. Calculate the annual expense for the following:

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

  1. What is the annual net surplus or deficit income for this household?

$________________ Net Surplus/ Net Deficit

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