Unsettling

religion is lies Personal Finance

1. What lump sum would you need when you retire to generate the return required to continue to live in the style you are accustomed to?

10 times your annual salary.

2. What percentage of your annual salary would you need to retire comfortably?

60 %

3. Define complimentary wants?

Where two things go together, so you have to have both of them eg. Cereal and milk

4. What is superannuation? What is float?

superannuation:

- compulsory form of savings for employees

- 65 and over- tax free- lump sum

- over $450 per month

- 30 hours or more per month

- conservative, balanced, growth

- written statement each year

- you can roll over to a new account with new employer, or keep the same

Float

shares that companies sell within themselves ,

5. What are two ways you can earn income from shares?

- buying share for very low price and selling them more

- sell for capital gain more than you brought for

- dividends- portion (part) of company TT profit

6. Disposable income?

The amount of money you can spend after tax

Real income?

After taking inflation into account

7. What is the document called that you receive from your employer at the end of the financial year that states your income and tax withheld?

PAYG Payment Summary- pay as you go certificate. (group certificate)

8. What are tax deductions (work related expenses)? Give examples.

Expensive the person gets no benefits from, stuff from work, charity. The more deduction they have the less taxable income they have to pay. Eg. For a teacher -Laser, pens, computer.

9. Explain when donations can be claimed as tax deductions.

Deductions can be claimed when are not getting any benefits, (e.g. charity's, just out of the goodness of your heart.)

10. Describe some methods of wise spending

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