Assignments that do not comply with the submission requirements will be assessed.The assignment can be completed individually or as a group of two or three.Only needs to be submitted. The hard copy will be the copy used for marking. The hardcopy should not rely on the marker accessingthe electronic copy in order to make sense of the hardcopy.of the group must submit an electronic copy via D2L/Cloud.Please ensure that each page is clearly numbered and includes your name(s)and student ID number(s) in the footer.All text based/Word information in the assignment should be doublespaced using a 12 point font. The assignment should have standard left,right and top, bottom margins.Due date for the assignment is: 1May 2014.The answer should be directed to the clients, Antonia and Mark, in the firstperson.The answer needs to be client-friendly and client-ready.All financial modeling should be done in and the impact ofmodelling in real terms needs to be made clear to Antonia and Mark.Students should be in a position to commence he assignment after they have completed Topic 2 of the study materials. Topics 3, 4 and 5 will also assist.not one hardcopies per groupAll members real terms1 of 4MAF311 Superannuation Planning Assignment Semester 1, 2014Antonia and Mark BurgessMark and Antonia and Mark have come to you for some advice about their superannuation.Antonia is 42 years old. She is a graphic designer working for an online publishing house. Antonia is in an accumulation scheme and her employer contributes the standard 9.25% superannuation guarantee into her account.

Antonia’s superannuation balance has been highly volatile commencing seven years ago Antonia had three years of terrible returns however over the last four years the returns have improved considerably – six months ago her superannuation balance was almost back to where it was 7 years ago so Antonia decided to shift out of her high growth investment selection into the cash investment selection. She currently remains in the cash investment selection.In 2013 Antonia earned $82,000. She has a balance in her superannuation account as at 31 December 2013 of $168,750. She does not currently salary sacrifice. Mark has suggested that a long term nominal rate of return of 4.15% on a cash investment selection is realistic and Antonia is happy for you to commence your modelling on this basis. Antonia also intends at this stage to work for another eighteen years before retiring at age 60.Mark is also 42 years old and works as a high school teacher. He is a member of his employers defined benefit superannuation scheme. His final superannuation payout on retirement is a function of three factors which are ultimately multiplied together to produce the payout amount. The factors are:Final average salary (FAS) which is an average of the last three years of salary. In 2011 Marks salary was $84,200, in 2012 it was $86,950 and in 2013 it was $91,720.The number of full time years worked (n). Mark has worked for his employer for the equivalent of 19 years full time. It is Marks current intention to work for another eighteen years full time by which time he will be 60 years of age.The employee contribution percentage which is generally denoted on the statements that Mark gets as the FAS%. Employees have the choice of how much they salary sacrifice into their defined benefit scheme, the choices are:o0% salary sacrifice = FAS% of 8.5% o5% salary sacrifice = FAS% of 17.5% o7% salary sacrifice = FAS% of 21%For the past 19 years Mark has salary sacrificed 5% of his salary into his defined benefit fund and he is happy to continue to contribute at least this amount into the future.Marks last superannuation statement dated 31 December 2013 stated that he had a notional $291,348 in superannuation however he would like you to check the accuracy of this figure before you go too much further with your superannuation modelling.Mark has done a bit of research and he is keen for you to incorporate some of his ideas into your modelling. Mark believes that if he were to open a separate superannuation2 of 4MAF311 Superannuation Planning Assignment Semester 1, 2014accumulation account and use a balanced investment strategy that he could generate nominal returns of 6.48%.Antonia and Mark have $300,000 in liquid assets outside the superannuation environment. They also have a mortgage on their home of $175,000. They have no children and have no plans to have children. They estimate that based on current expenditure they would generate a cash surplus of about $20,000 per year. They also estimate that they would spend approximately $30,000 per year on travel.Retirement seems a long way off however they have decided to set themselves a target. A friend has suggested that if you can generate a retirement income of 65% of your pre- retirement income then you should have a fairly comfortable retirement. Antonia and Mark have no idea whether this is an achievable target or not that is why they have come to you for advice.Other assumptions:The rate of inflation is 3%.A nominal increase in income of 4.72% per annum for both Antonia and Mark.The interview with Antonia and Mark has been conducted at the end of 2013 sothat all modelling would be done in calendar years commencing 01/01/2014.Funds invested in retirement are expected to generate a nominal return of 5.80%.All superannuation contributions are made in December of each year andtherefore do not attract earnings in the year in which they are made.The Abbott Government currently has pending legislation which will delay theincrease to the SGC. For the sake of simplicity assume that the SGC is 10% for each year of the financial projections this will lead to a slightly conservative estimate.RequiredMark and Antonia would like a report which models and displays the following information:A.Howmuchtheycanexpecttoaccumulateinsuperannuationbythetimethey retire at age 60 based on their current superannuation settings. You will need to model Mark and Antonias superannuation separately.Part A for Mark should display on a single A4 spreadsheet page.Part A for Antonia should display on a single A4 spreadsheet page. (Hint: Use a landscape approach combined with the Hide rows function) Therefore Part A = maximum of two spreadsheet pages.3 of 4MAF311 Superannuation Planning Assignment Semester 1, 2014Theretirementincomestream,expressedasapercentageoftheircombinedpre- retirement income, that they can expect in retirement based on the accumulated amount you determined in part A above. This should be based on Antonias life expectancy. [Pleasenote that this can be calculated using the Payment PMT function in Excel we are not asking you what type of income stream they should choose this is discussed in topic 8 of the study guide which we will consider after the assignment has been completed and handed in.]BrieflyexplaintoAntoniaandMarktheimpactofmodellinginrealterms.Whatfivestrategiescanyousuggestforboostingthecouplesretirementincome? Antonia and Mark thought they could kick-start this process by suggesting two strategies:Antonia is worried that she was too hasty in moving to the cash investment selection and wonders what would be the impact of changing her investment selection again.Mark wonders whether he should increase his contribution to his defined benefit plan to 7% or whether he would be better off by setting up a separate accumulation account and salary sacrificing the extra 2% into that account instead.[Youare required to explain and discuss your strategiesandprovide some financial modelling results.]A separate spreadsheet should not be included for each strategy you might consider in this part.If you have a preferred scenario (a single strategy or combination of strategies) and you want to demonstrate to Antonia and Mark the thinking behind your strategies, you can include one spreadsheet in this part it must however print on one A4 page.If you wish to show Antonia and Mark the results of other scenarios then this must be done through the use of tables, graphs, charts etc. Effective communication is the key.Your written commentary to parts C and D combined should not exceed 1800 words (please include a word count).Assignments which do not comply with the submission requirements will be assessed.The assignment can be completed individually or as a group of two or three.Only needs to be submitted. The hard copy will be thecopy used for marking. The hardcopy should not rely on the marker accessingthe electronic copy in order to make sense of the hardcopy.of the group must submit an electronic copy via D2L/Cloud.Please ensure that each page is clearly numbered and includes your name(s)and student ID number(s) in the footer.All text based/Word information in the assignment should be doublespaced using a 12 point font. The assignment should have standard left,right and top, bottom margins.Due date for the assignment is: 1May 2014.The answer should be directed to the clients, Antonia and Mark, in the firstperson.The answer needs to be client friendly and client ready.All financial modelling should be done in and the impact ofmodelling in real terms needs to be made clear to Antonia and Mark.Students should be in a position tocommencethe assignment after they have completed Topic 2 of the study materials. Topics 3, 4 and 5 will also assist.notone hardcopy per groupAll membersreal terms1 of 4MAF311 Superannuation Planning Assignment Semester 1, 2014Antonia and Mark BurgessMark and Antonia and Mark have come to you for some advice about their superannuation.Antonia is 42 years old. She is a graphic designer working for an online publishing house. Antonia is in an accumulation scheme and her employer contributes the standard 9.25% superannuation guarantee into her account. Antonias superannuation balance has been highly volatile commencing seven years ago Antonia had three years of terrible returns however over the last four years the returns have improved considerably – six months ago her superannuation balance was almost back to where it was 7 years ago so Antonia decided to shift out of her high growth investment selection into the cash investment selection. She currently remains in the cash investment selection.In 2013 Antonia earned $82,000. She has a balance in her superannuation account as at 31 December 2013 of $168,750. She does not currently salary sacrifice. Mark has suggested that a long term nominal rate of return of 4.15% on a cash investment selection is realistic and Antonia is happy for you to commence your modelling on this basis. Antonia also intends at this stage to work for another eighteen years before retiring at age 60.Mark is also 42 years old and works as a high school teacher. He is a member of his employers defined benefit superannuation scheme. His final superannuation payout on retirement is a function of three factors which are ultimately multiplied together to produce the payout amount. The factors are:Final average salary (FAS) which is an average of the last three years of salary. In 2011 Marks salary was $84,200, in 2012 it was $86,950 and in 2013 it was $91,720.The number of full time years worked (n). Mark has worked for his employer for the equivalent of 19 years full time. It is Marks current intention to work for another eighteen years full time by which time he will be 60 years of age.The employee contribution percentage which is generally denoted on the statements that Mark gets as the FAS%. Employees have the choice of how much they salary sacrifice into their defined benefit scheme, the choices are:o0% salary sacrifice = FAS% of 8.5% o5% salary sacrifice = FAS% of 17.5% o7% salary sacrifice = FAS% of 21%For the past 19 years Mark has salary sacrificed 5% of his salary into his defined benefit fund and he is happy to continue to contribute at least this amount into the future.Marks last superannuation statement dated 31 December 2013 stated that he had a notional $291,348 in superannuation however he would like you to check the accuracy of this figure before you go too much further with your superannuation modelling.Mark has done a bit of research and he is keen for you to incorporate some of his ideas into your modelling. Mark believes that if he were to open a separate superannuation2 of 4MAF311 Superannuation Planning Assignment Semester 1, 2014accumulation account and use a balanced investment strategy that he could generate nominal returns of 6.48%.Antonia and Mark have $300,000 in liquid assets outside the superannuation environment. They also have a mortgage on their home of $175,000. They have no children and have no plans to have children. They estimate that based on current expenditure they would generate a cash surplus of about $20,000 per year. They also estimate that they would spend approximately $30,000 per year on travel.Retirement seems a long way off however they have decided to set themselves a target. A friend has suggested that if you can generate a retirement income of 65% of your pre- retirement income then you should have a fairly comfortable retirement. Antonia and Mark have no idea whether this is an achievable target or not that is why they have come to you for advice.Other assumptions:The rate of inflation is 3%.A nominal increase in income of 4.72% per annum for both Antonia and Mark.The interview with Antonia and Mark has been conducted at the end of 2013 sothat all modelling would be done in calendar years commencing 01/01/2014.Funds invested in retirement are expected to generate a nominal return of 5.80%.All superannuation contributions are made in December of each year andtherefore do not attract earnings in the year in which they are made.The Abbott Government currently has pending legislation which will delay theincrease to the SGC. For the sake of simplicity assume that the SGC is 10% for each year of the financial projections this will lead to a slightly conservative estimate.RequiredMark and Antonia would like a report which models and displays the following information:A.Howmuchtheycanexpecttoaccumulateinsuperannuationbythetimethey retire at age 60 based on their current superannuation settings. You will need to model Mark and Antonias superannuation separately.Part A for Mark should display on a single A4 spreadsheet page.Part A for Antonia should display on a single A4 spreadsheet page. (Hint: Use a landscape approach combined with the Hide rows function) Therefore Part A = maximum of two spreadsheet pages.3 of 4MAF311 Superannuation Planning Assignment Semester 1, 2014Theretirementincomestream,expressedasapercentageoftheircombinedpre- retirement income, that they can expect in retirement based on the accumulated amount you determined in part A above. This should be based on Antonias life expectancy. [Pleasenote that this can be calculated using the Payment PMT function in Excel we are not asking you what type of income stream they should choose this is discussed in topic 8 of the study guide which we will consider after the assignment has been completed and handed in.]BrieflyexplaintoAntoniaandMarktheimpactofmodellinginrealterms.Whatfivestrategiescanyousuggestforboostingthecouplesretirementincome? Antonia and Mark thought they could kick-start this process by suggesting two strategies:Antonia is worried that she was too hasty in moving to the cash investment selection and wonders what would be the impact of changing her investment selection again.Mark wonders whether he should increase his contribution to his defined benefit plan to 7% or whether he would be better off by setting up a separate accumulation account and salary sacrificing the extra 2% into that account instead.[Youare required to explain and discuss your strategiesandprovide some financial modelling results.]A separate spreadsheet should not be included for each strategy you might consider in this part.If you have a preferred scenario (a single strategy or combination of strategies) and you want to demonstrate to Antonia and Mark the thinking behind your strategies, you can include one spreadsheet in this part it must however print on one A4 page.If you wish to show Antonia and Mark the results of other scenarios then this must be done through the use of tables, graphs, charts etc. Effective communication is the key.Your written commentary to parts C and D combined should not exceed 1800 words (please include a word count).