your client has saved $27.500 to contribute to his superannuation fund. Assume that the contribution is...
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your client has saved $27.500 to contribute to his superannuation fund. Assume that the contribution is a non-concessional contribution (meaning that there is no tax deducted on the contribution by the superannuation fund). Assume the superannuation fund receives no other contributions at any time. The $27,500 is invested in a diversified share fund that mirrors the market. The client expects to achieve the market rate of return of 9% per annum, compounded monthly. At the end of his working life (30 years from today), can the client anticipate to have enough money sufficient to fund 25 years of retirement? You estimate that the client would need a minimum of $2,500 per month to live comfortably for these 25 years. For simplicity, assume that the minimum $2,500 per month payment will be made at the end of the month. The principal amount continues to gather a 9% per annum return, compounded monthly in retirement. Assume that the 9% p.a. return is an after-tax return. Identify, using applicable calculations, whether your client will have enough money (in the form of your superannuation fund) to support his $2.500 per month retirement allowance. your client has saved $27.500 to contribute to his superannuation fund. Assume that the contribution is a non-concessional contribution (meaning that there is no tax deducted on the contribution by the superannuation fund). Assume the superannuation fund receives no other contributions at any time. The $27,500 is invested in a diversified share fund that mirrors the market. The client expects to achieve the market rate of return of 9% per annum, compounded monthly. At the end of his working life (30 years from today), can the client anticipate to have enough money sufficient to fund 25 years of retirement? You estimate that the client would need a minimum of $2,500 per month to live comfortably for these 25 years. For simplicity, assume that the minimum $2,500 per month payment will be made at the end of the month. The principal amount continues to gather a 9% per annum return, compounded monthly in retirement. Assume that the 9% p.a. return is an after-tax return. Identify, using applicable calculations, whether your client will have enough money (in the form of your superannuation fund) to support his $2.500 per month retirement allowance.
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Related Book For
South-Western Federal Taxation 2018 Comprehensive
ISBN: 9781337386005
41st Edition
Authors: David M. Maloney, William H. Hoffman, Jr., William A. Raabe, James C. Young
Posted Date:
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