Eddie And Gail Case Study

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FIN252 Eddie & Gail: - Live in Blue Mountains, NSW - have three married children, seven grandchildren - They keep around $4,000 in their cheque account and $15,000 in an emergency savings account earning 4% p.a. - Sold off their investment property for $235,000. This amount is now in term deposits earning 6%. - Their home is valued sat $450,000, that is where they will live during retirement. - Their home is insured for $400,000 - They have two cars aged five and six years old and both are fully insured - They have private hospital over and intend to keep it as long as they can afford it. They pay $213 per month for this cover. - They believe they will need $50,000 p.a. in retirement Gail: - Part-time nurse…show more content…
Superannuation guarantee amount paid by her employer - Current balance is $225,000 invested in a balanced fund earning 5.5% p.a. - Considering retiring in two years - to spend more time at home and in her garden with her grandchildren - Has life and total and permanent disability insurance within her super Eddie: - Repair and Maintenance work. - Earns $30,000 from contract work, also earns $15,000 from personal work - Will stop doing contract work when Gail retires, will only do the repair and maintenance work for long-standing clients. - Wants to travel around Australia when Gail retires - They will need $35,000 for a camper van, and $40,000 for a new, powerful car to pull it - $285,000 super in a balanced fund earning 5% p.a. and the contractor makes contributions into it each year. Expenses: - $160 per week on food - $50 per week on petrol - $500 quarterly on electricity - $213 per month on private hospital cover - $150 per month on telephone - $3,000 per year on rates and water - $4,000 on car registration, insurance and repairs - $200 per month on pay-TC and internet - $10,000 a year on entertainment, vacations,

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