Life Online Advice Tool Guide (LOAT)

LOAT Process Guide

SOA Test Case

Calculations

• Income & Expenses

  • A: Total Gross Income: Sum of Income Total Gross Income Column

  • B: Net Rental Income: (Sum of (Rental Income x Frequency) - Rates - Insurance - Other Expenses)

    • Entered under Assets & Liabilities > Property

  • C: Net Other Income: Sum of Annual Income

  • D: Annual Taxable Joint Income: A+B+C

    • Total Gross Income + Net Rental Income + Net Other Income

  • E: Monthly Taxable Joint Income: D / 12

    • Annual Taxable Joint Income / 12

  • F: Monthly After Tax Income: (D - (Tax + ACC)) / 2

    • Tax:

      • Individual Income > $180,000 x 0.39 + $50,320

      • Individual Income > $70,000 x 0.33 + $14,020

      • Individual Income > $48,000 x 0.3 + $7,420

      • Individual Income > $14,000x 0.175 + $1,470

      • Individual Income < $14,000 x 0.105

    • ACC:

      • Individual Income > $128,470 = $1,785.73

      • Individual Income < $128,470 x 0.0139

  • G: Total Expenses: ((Expense x Frequency) + (Expense x Frequency, etc...)) / 12

  • H: Unallocated Monthly Income: F - G

    • Monthly After Tax Income - Total Expenses

• Risk Analysis

  • Life, Disability, TPD & Critical Illness: 

    • A: Current Income: (Total Gross Income - (Tax + ACC))/12

    • B: Surplus/Shortfall: Unallocated Monthly Income - Lost After Tax Income Per Month 

  • Life, Disability & TPD: 

    • C: Updated Monthly Surplus/Shortfall: Surplus/Shortfall + Expenses that would start - Expenses that would stop

  • Life & TPD:

    • D: Projected Monthly Surplus/Shortfall: Updated Surplus/Shortfall + Total Loans - Sold Assets

    • E: Annual Surplus/Shortfall: Projected Monthly Surplus/Shortfall x 12