Sue, aged 48 and Paul, aged 49 have two daughters- Leena aged 17 and Reena aged 15. Sue works as a part-time teacher in a secondary school and earns a $26,000 p.a. salary (plus minimum superannuation guarantee contribution).Paul works as a dentist and earns $145,000 (plus minimum superannuation guarantee contribution). Paul is anxious about their post-retirement financial situation. The couple has approached you for financial advice in respect of reducing the tax payable and their retirement planning. Superannuation Sue    (20% Tax Free) 270,000   Sue’s Superannuation asset allocation   Investment   Asset Allocation   Performance p.a. after tax   Australian Share   50%   4%   Cash & Fixed Interest   15%   1.4%   International Shares   30%   10.80%   Property   5%   3.10% Calculate the expected return for Sue’s superannuation portfolio using the return for the year ended 2022. Explain to Sue why her superannuation portfolio balance fluctuates more than she would like it to

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Sue, aged 48 and Paul, aged 49 have two daughters- Leena aged 17 and Reena aged 15.

Sue works as a part-time teacher in a secondary school and earns a $26,000 p.a. salary (plus minimum superannuation guarantee contribution).Paul works as a dentist and earns $145,000 (plus minimum superannuation guarantee contribution). Paul is anxious about their post-retirement financial situation.

The couple has approached you for financial advice in respect of reducing the tax payable and their retirement planning.

Superannuation

Sue

 

 (20% Tax Free)

270,000

 

Sue’s Superannuation asset allocation

 

Investment

 

Asset Allocation

 

Performance p.a. after tax

 

Australian Share

 

50%

 

4%

 

Cash & Fixed Interest

 

15%

 

1.4%

 

International Shares

 

30%

 

10.80%

 

Property

 

5%

 

3.10%

  1. Calculate the expected return for Sue’s superannuation portfolio using the return for the year ended 2022. Explain to Sue why her superannuation portfolio balance fluctuates more than she would like it to.
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