New Prosperity

The service of New Prosperity allows, you the Primary user to create, control and then make informed decisions about the current financial status of your household. To establish the current financial status of your household, it involves quite a complex calculation.

The calculation goes through several steps. “New Prosperity” steps through and collects the various financial numbers of your Household. Firstly New Prosperity will calculate the Households tax Position. Then depending on types of tax deductions will establish your household cashflow. All of New Prosperity logic is based on the current financial year.

Below we will map out a general view, with limited examples of how “New Prosperity” collates the various financial numbers in order to calculate the Household cashflow.

Gross Income:

 All sources of income 

  • you and your spouse salaried income  
  • bank interest income
  • Income from any assets like shares, investment property
  • Pension income

Tax deductions:

 A few examples of your tax deductions considered: 

  • Salary sacrificed superannuation contributions
  • Employer contributions
  • Percentage of any Household Expenses
  • Depreciation on any vehicles
  • Interest costs on any investment properties
  • Interest cost on any borrowings related to Managed funds or shares
  • Income Protection

Government matters:

At this point we investigate some government rebates and Medicare cost:

  • Medicare
  • Low income rebate
  • Senior tax offsets

Tax free income:

A few examples of tax free income: 

  • Gifts of financial monetary nature
  • Inheritance from a deceased estate
  • Certain sourced foreign pension income

CREATE YOUR CHOICES

Once the “New Prosperity” calculation has established the financial position of the household and all information has been satisfactorily inserted at levels that reflect the household’s income and expenses for both the husband and wife.

You can start to Create scenarios to look at the impact on your household financial position:

How much can mortgage interest rates rise, before you cannot service your mortgage :

  • What is the affordable level of Salary sacrifice to contribute through your employer super fund
  • Investigate the impact of buying an investment property with deposit and borrowings.
  • Look at what rental income is required to service the Investment property loan after tax
  • Fine tune the affordability of private education schooling for you and your spouse
  • Helps with investigating Salary packaging offered by your employer

These being just a few of the scenarios that can be modeled, there are many more I am sure you will think of once you have all of your household information inputed to the New Prosperity service. Once setup the combination of scenarios you can model for your family future is unlimited. 

The “New Prosperity” service allows you to make financially informed choices about your financial position in this current tax year.

NETWORTH

The “New Prosperity” services extends to establishing the net worth of your household. This is the very reason we all work to improve our net worth year on year. Unless your absolute net worth position is improving year on year all the hard work can amount to nothing at the end of a long working career. Your hard work should be manifesting itself as an increase in your wealth position. The value of all your assets less your liabilities, need to be increasing ahead of the rate of inflation CPI 

Your real wealth in absolute terms is not increasing unless it is increasing more than the CPI expressed to all Australians by the head of the Reserve Bank of Australia each month. The reason it must be the case is that inflation (CPI) erodes the purchasing power of our money.

Below we have itemised a few assets and liabilities “New Prosperity” collates in order to calculate your Networth

ASSETS – held jointly or on a personal basis:

  • Your Home
  • Term Deposits
  • Investment portfolio’s
  • Managed funds
  • Superannuation
  • Life Insurance

LIABILITIES – held jointly or on a personal basis:

  • Home Loan
  • Personal Loan
  • HECS debts
  • Car Loans
  • Margin Loan

These are just a few examples of the Assets and Liabilities that your household may own,

New Prosperity then articulates ownership and the value of all assets and liabilities you have inputed for your Household. Calculates the Networth for each individual and compiles the individuals Networth to a combined netwoth for the Household. 

YOUR CONTROL 

The power of New Prosperity service is in the way Summary reports are collated for you:

  • Calculates your tax position through out the financial year with YTD & EOY
  • Provides a  “Regular Expense Summary” of all entered expenses
  • Provides a “Income Summary”  for all Income from all sources
  • Provides a “Income Summary”  articulating all Tax deductions
  • Provides Asset & Liability Summary to calculate your networth
  • New Prosperity summary page then summarises all of the above summaries

Summary reports are presented in spreadsheet format easy to read, and provide a very simplistic way to look at and review a multitude of financial information, all relating to you and your partner household overall wealth position.

This is where the control is created for you and your family, New Prosperity empowers you to approach any financial decision with confidence knowing what impact the decision will have on your current financial position.

A few examples of the need for New Prosperity service

  • Planning a baby, how long can my spouse be off work before financial impact is severe
  • How much do interest rates go up before we cannot afford the mortgage payment
  • Modeling a new salary package offer from your employer
  • Can we afford a second investment property
  • How much can we commit to a savings plan for the kids
  • Investigate different costs of private schooling for your children

The points above give an idea of the many uses of New Prosperity service for you to contemplate whilst making a decision to sign up.  

PRIMARY USERS

As a Primary user of New Prosperity service, you can give a trusted friend or your professional service provider access with a Login and password. Allocated by you and totally controlled by you. With the ability to give access for certain time frames with expiry dates.

SUB USERS

You can provide them with access to any or all of the pages filled with your information. You have total control over what they can do whilst logged in:

Full Edit capabilities

  • Confine the Sub User to Read Only
  • Print none, any or all of the pages you give access to

This is a great service to help you check information with a trusted friend and provides a web based mechanism that can be checked or communicated as you see fit in your total control. Saves so much time for both you and any professional you maybe working with. You can have multiple Sub Users all managed through the administration section of the New Prosperity service once you are logged in as the Primary User.