StrategyStrategyStrategy contributions tax $1,282 $2,782 Net super contribution

StrategyStrategyStrategy Investment• I estimate I can save about 50% of my income or $600 per month.• To build my wealth, I plan to invest an initial amount of $4,000 into a diversified portfolio and make regular deposits of about $350 per month.• The portfolio will be growth orientated (75% Growth) with an expected average return of 7% pa over the medium to long term.• I expect to double my savings every 12 to 18 months.• Australia companies pay dividends and franking credits to offset income tax. I intend to re-invest distributions if available. • See page 10 for Investment Projection.• When I secure full-time employment with a regular income, I may employ a margin loan to increase the investment capital and offset interest cost against my income tax. Superannuation• Rebel pays superannuation guarantee of 9.5% into my REST Super.• My super portfolio is mainly growth investments (90% Growth). • Currently I do not salary sacrifice into super but I expect to do so when in full time employment.• I know that by salary sacrificing I will save net tax and have more in super over a longer period to compound returns. See example below which is provided by the ASIC web site MoneySmart.Austin’s income Without salary sacrifice With salary sacrificeGross salary $90,000 $90,000 Less salary sacrifice to super $0 $10,000 Less tax + Medicare levy $22,732 $19,147 Take home (net) pay $67,268 $60,853 Crystal’s super  Employer super contribution $8,550 $8,550 Plus  salary sacrifice $0 $10,000 Less  contributions tax $1,282 $2,782 Net super contribution $7,268 $15,768    • If I have spare savings toward the end of the FY I will make an after tax contribution to super for the co-contribution.• I may use the First Home Super scheme in future to help contribute to a deposit for a property up to $30,000.Home loan• I will be eligible for the first home-buyers assistance from the NSW state government. • On a purchase price of $700,000, the stamp duty is approximately $10,500, a saving of over $16,000.• As mentioned above, I can access the First Home Super scheme in future to help contribute to a deposit for a property up to $30,000.• I will be eligible for First Home Owner Grant (new home) of $10,000.• On a home loan borrowing of $500,000 over 25 years, the expected principal & interest repayments at current home loan rates work out to be $2,800 per month. InsuranceInsurance Personal Insurance• I have $125,000 of cover in life insurance and a TPD cover of $71,500 through my REST Super, for a cost of $0.50 and $0.20 per week, respectively. • When I have secured my first full time position I will seek to obtain trauma and income protection insurance.• When I take on debt (home loan) I will increase my life & TPD cover to be able to pay off the debt.• I understand there are specialist insurers for the aviation industry.Health Insurance• I am on my family’s health insurance policy with HCF. As long as I am a full-time student I will be covered by this policy up to age 25.• HCF has Young Started Cover from about $115 per month. I will consider this cover at age 25. I can claim the private health rebate as a reduction to premiums. I know that if I don’t have private health insurance and I earn above the threshold of $90,000 pa as a single person, I will pay the Medicare levy surcharge of 1% on top of the Medicare levy (currently 2%). Car Insurance• I will comprehensively insure my car.• I understand that my driving record (demerit points) will have an effect on the cost of this insurance. Estate PlanningEstate Planning • My intention is to put a simple will in place to make it ease for my assets & liabilities to be dealt with in the event of my death.• I will nominate my estate to be the beneficiary of my superannuation & associated insurance.• While I am unmarried or not living in a de-facto relationship the intention is for my net assets to flow to my family.• When I enter into an on-going relationship I will change my will. On-going ReviewOn-Going Review & Monitoring • I plan to review my plan every 6 months to check to see that my savings and investing goals are being achieved.• I have identified applications to help me keep on top of my expenses (Pocketbook). I will use these to monitor my accounts.• Engage a financial adviser for a review every 12 months to get a third party independent view of progress towards my goals. Plan of ActionPlan of Action • Maintain current casual team member position at Rebel Sport and maintain a minimum of 12 hours of work per week to ensure $7,000 can be saved by August, 2018• Pay the $7,000 earned combined with $13,000 in current savings and put it all in conjunction with parents’ contribution of $20,000 to pay the $40,000 needed for the flying part of my degree (August, 2018)• Make continual monthly payments of $350 into the diversified management fund to foster greater capital growth generating a better return (0,1,2,3 – X years)• Endeavour for credit average in all university subjects to create better appeal for yourself when selling yourself to prospective employers in the future (November, 2020)• Commit to picking up university rowing as a sport this year. Demonstrates characteristics, values and community involvement which are desirable from the perspective of future employers (March, 2018)• Endeavour to save 50% of current income to build some capital to put towards a deposit on an investment property. Will also provide a buffer in case opportunities or unforeseen circumstances arise (0, 1, 2, 3 … X years)• Review plan every 6 months   Investment Strategy – Projection• Based on assumption of 7% baseline growth rate from Morningstar fund Austin Beins – 2nd Year UNSW – Investment Strategy  1 mth 2 mth 3 mth 4 mth 5 mth 6 mth 7 mth 8 mth 9 mth 10 mth 11 mth 12 mth  $ $ $ $ $ $ $ $ $ $ $ $Diversified Mgd Fund $4,000 $4,373.33 $4,748.84 $5,126.55 $5,506.45 $5,888.57 $6,272.92 $6,659.51 $7,048.36 $7,439.48 $7,832.87 $8,228.57Ave annual return pm (capital & distributions) 0.58% 0.58% 0.58% 0.58% 0.58% 0.58% 0.58% 0.58% 0.58% 0.58% 0.58% 0.58%Return pm $23.33 $25.51 $27.70 $29.90 $32.12 $34.35 $36.59 $38.85 $41.12 $43.40 $45.69 $48.00Regular mth deposit 350 350 350 350 350 350 350 350 350 350 350 350Balance at end of mth $4,373.33 $4,748.84 $5,126.55 $5,506.45 $5,888.57 $6,272.92 $6,659.51 $7,048.36 $7,439.48 $7,832.87 $8,228.57 $8,626.57 Referenceshttps://www.moneysmart.gov.au/investinghttps://www.superguide.com.au/

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