Tuesday 16 January 2018

Originally posted on Facebook - Scenario Planning 2017-10-11-001:

Jennifer is the holder of 4 winning Cash Pot Tickets of $30,000 each.


She plans to cash them in and place 30 fixed deposits of $4,000 (or less*) each at the bank.


Each month two deposits will be placed. In some months an additional two deposits will be placed.


The bank accepts deposits for periods of 1 month, 3 mths, six months and 1 year.

Taking into account that Jennifer intends to:

Pay Green Fund Levy and Business Levy (local qrtly taxes) on the income generated from the fixed deposits*, and

Pay the above taxes as late as possible while still meeting the statutory deadlines,

Hold some of the deposits so that at a point in time there is flexibility, what terms would you suggest that the deposits be placed for?

A starting plan to the above will be provided in another post.

Feel free to try the above out, as the $4000 amount can be $400 or more, depending on where you are with your savings.

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