财务分析个人财务与投资分析 精品.docx

1、财务分析个人财务与投资分析 精品Suggestions on Andrews investment1. IntroductionTo have fortable life, it is important for one to earn more, but no less is the right management of money, as acclaimed by Carlos (20XX). Andrew is facing the problem of managing his money effectively, so this report is written to give

2、him some suggestions. Before writing, the work of referring to the introduction of his situation and the checking of the internet for information of proper financial products and services has been done carefully.As was written to illustrate the fact that how to schedule your finance and how to inves

3、t efficiently, this report is not only fit Andrew very well but will also be helpful for someone who is unfamiliar with financial services and products but want to manage their wealth more efficiency.The report firstly analyzed the financial structure of Andrew; in addition, It worked out the future

4、 financial needs of Andrew; then, It checked to find proper financial products or services mainly by internet; and finally, It e up with a conclusion which includes a series of financial products and services that fits Andrew well, also It helped him on how to deal with it effectively.2. Analysis of

5、 financial services2.1 Current financial structure of AndrewTable 1. Andrews financial structureForm table 1 we can clearly know what Andrew has and how much are they to investment. The calculation of his assets and net ine in detail is as following:As he has buy a personal pension for five years, a

6、nd he does currently pay 6% of his gross salary into it, so in total he has put $14400 into the personal pension schedule.According to the Tax relief on personal pensions, he ends up to have $ 18000 in his pension pot.His assets include some ordinary shares of three panies, money in bank accounts an

7、d a flat. The number of ordinary shares is as following:Aberdeen Asset Management30,000Prudential6,000Royal Bank of Scotland60,000Money in his current account is 1,800 and in his easy-access savings account is 5,000. The flat is a 2-bedroom flat near the centre of Edinburgh.His debt is the mortgage

8、of his flat to pay in five years.He may pay tax include ine tax and tax on saves and investments.According to the rule from the website of UK (20XX), to calculate his tax on ine, we should firstly calculate out the taxable ine which is gross ine of salaries and investment; then less debt and pension

9、 contributions, and lastly to find the right basic rate to do the final calculation. The process of calculation is illustrated as following, Andrew and calculates it out by himself with further information on his financial condition. He can also search for online help by visiting the website of HMRC

10、 Online Services.Taxable Ine 48,000 Less Personal Allowance ? ? ? Less Pension Contributions 3,600 Ine tax chargeable on ? ? ?Basic Rate at the fittest level ? ? ? Tax payable = ? ? ? Tax rate on earnings by different way or on different financial products are usually different from each other. Any

11、interest earned (on savings accounts, certain types of OEIC etc.) is usually taxed at 20%, while investment ine in the form of dividends from pany shares, for example, is only taxed at 10% (Arthur, 20XX). When he sell his assets, such as his flat or his ordinary shares he has to pay for a Capital Ga

12、in Tax at the tax rate of 18%.His ine includes his after-tax salary, dividends and interests from his banking account. But more attention should be pay on about his net ine or to say the cash flow he can moister to invest. He has $500 per month left over from his salary that he can save or invest el

13、sewhere, so it add up to $6000 every year he can collect to save or invest elsewhere, this is his net ine via his salary. He can also receive some dividends by his ordinary share though stocks he own and interests though his current account and easy-access savings account. Interests of his current a

14、ccount and his easy-access savings account are various from different banks and time to time, but Andrew and easily find them from the website of the government of UK.2.2 future financial ambitions of AndrewHe wishes to use the funds he has available to travel the world for at least two years when h

15、e retires, so the investment terms supposed to be totally 10-12 years and of course he suppose the much reward the better.He has to pay for mortgage for his flat in the next five years, so he should be clarify in the first 5 years while in the last 5 to 7 years. In the last 5 to 7 years he can inves

16、t into some financial products which is more risky besides remains some money for his living. After backing from his travel around the world, Andrew has to plan for his rest life, as he has to have a flat to live in, but do not need one after his death, I suggest him using Reverse Annuity of Real Es

17、tate and life insurance. So this report suggests him to divide his investment term into three. The first one is his first five years, the second one is his other 5 to 7 years, and the third one is from his back of travel to his death.2.3 Range of products available to Andrew The financial sector inc

18、ludes banks, insurance panies, finance houses, investment trusts, fund managers, the stock exchange and so on. They provide many financing tools include investor shares, bonds, and warrants and so on. As he has no obvious inclines that all these financial products and their portfolios can be availab

19、le to Andrew.Information in details of financial products which may fit Andrew is as following,Pensions: Pensions are designed to provide regular ine for people when they retired. Blackburn (20XX) had discussed a global pension plan which includes a various kinds of pensions which suggested that The

20、re are really many different types of pensions, and they are traditionally been managed by pension funds and insurance. Now, let us practice to find how the tax relief on personal pensions works: if Andrew put 80 pound in to his personal pension schedule, he can ends up with the right to claim that

21、he can get 100 pound in his pension pot. That is to say the investor of the pension can claim tax back from the government at the basic rate of 20%.To check whether you can get a state pension, you can find more information in details by the website of UK government. You can also find information on

22、 personal pension investment there. You can buy pensions though two ways: getting one through your job, or setting up your own. Also, you can choose both.Reverse Annuity of Real Estate: It is a financial product mainly designed for retire persons. It works in the following way: when a person retires

23、, he can get a payment from the bank for a certain year, or until his death. Then in the final of the term, or when the investor dies, the bank will get the real estate.Life insurance is the most important way to deal with uncertain situations, especially for old people who are really easy to be ill

24、. Also it fits Andrew well when he having the travel all over the world. He can get information easily from the insurance panies or online services of insurance institutions.Suitable tax-free products include: fixed rates fund and premium bands of banks and ISAs and National Savings & other Investme

25、nts. They are always serve by the bank, or have close relationship with the government. They are always financial products with low risk and low reward.As the very fast development of financial products, now days just like Baddepudi (20XX) es up with, other important financial products such as ITs,

26、UTs and OEICs are playing a more and more important role in the portfolio.IT here is short for investment Trust which is a public limited pany to sell its assets by shares in the secondary market, it mostly used in the UK. ITs are close-ended fund. In fact IT is not in fact a “trust” but a separate

27、legal person or a pany in the sense of law. It operates and trades like any other quoted pany. People hold it by shares which are traded in the secondary market and the share price is determined by supply and demand monthly. It has low risk but high reward when pared with UTs and OEICs.UT is the abb

28、reviation of Unit Trust which is equal to Unit Investment Trust. In fact, UT is a Trust which broken down a portfolio which includes lots of money into unit, this is where the differences lies between UT and mutual fund, according to Sharpe (1996). It is sold by unit and it is easy and cheap to trad

29、e. For its average risk is equal to the portfolio it es from which is low, its reward is also low.The management pany plays a very important role for a unit trust to be successful. The management pany gets shares form panies and they put them together to form a capital pool, then they create UTs by

30、divided the capital pool into unit. The management pany burdens the responsibility to advertising and selling the UTs, and they make money by selling UTs. There are lots types of UTs, among which the most mon are cash equivalents, property, mortgages and securities. Expenses for investing UTs includ

31、e operating expenses and sales charges and entrance or exit fees. The operating expenses of UTs are low because they are not buying or selling by shares. But different from many other financial products namely ITs or OEICs, UTs always has a sale charges and entrance or exit fees. It is also called p

32、articipate Trusts for both the investor and the owner of the capital of unit trusts shares the rewards and risks. OEIC is equal to its full name-Open-Ended Investment pany. It operates and trades by shares like IT, but it is an open pany. It is also trades like a stock. The shares of OEIC of a certain pany are listed and traded by the London Stock Exchange, and how the price of the Open-Ended Investment pany is same when pared with a stockits price formed by bide of sellers and buyers, and its price changes from day to day mainly decided by the supply and dem