Essays on Wealth Creation Recommendation - Outside Superannuation Case Study

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The paper “ Wealth Creation Recommendation – Outside Superannuation” is an affecting example of a case study on finance & accounting. Objective: Set up a house deposit account, provide capital for helping Brain and Bella on their first home in a few years’ time (medium priority). The amount required approximately $100000 with a timeline of 5 to 6 years’ time. Both of them get $ 50000 each. Recommended strategyInvested share for $30000, on 1 July 2005, now worth $40000, the maturity of the investment bond after 5-7 years’ time should be worth $100000.Sufficient maturity, we have an investment bond with growth asset allocation. Advantages of strategyAccording to the results of the (HILL 32) FV calculations in Appendix 1, the client should be able to achieve the above objective. Amounts $100000 for both Bella and Brain are a good-sized deposit. Investment bonds are useful for capital growth, according to (Nielsen 33) and long-term returns, with a timeframe maturity of 7years. Investment bonds are considered less risky compared to various investment options. When left to mature investment bonds can generate lump sums of money. During this long-term period, (Skousen and Walther 22) states that the return on your investment can increase significantly compared to a savings account of course considering the interest rate. Investment bonds once sold there is no obligation to pay the investor any amount. currently, the mortgage market estimates the amount be around 23% of the value of the property. This is a surplus amount almost double of a confident 10% deposit, sufficient for quite some mortgage deals.   Most importantly is that money given to children have no immediate tax implication.

This means you can provide as reported (Hill 22) as much as financial support to your children tax-free. Capital gained from investment bonds is taxable, but Jake can withdraw up to 5% of the initial amount every year without any tax burden. Jake can nominate Bella and brain as beneficiaries so if he is to pass away children would receive the fund's tax exempted.  

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