1. As a financial planner you are required to design and recommend a retirement plan to your client. The appropriateness of the plan will usually depend on how well it serves the need and objective of the client. Based on the given data, extracted from the client's fact- finding sheet, you are required to analyze their financial data. Note: Rate of return during retirement is 5%. Inflation rate is 3.5% Salary growth rate is 4% EPF contribution is 23% of annual salary. The first-year retirement income (calculated in today's dollar) is 65% of the salary. All clients are assumed to remain in retirement period until age 75. QUESTION: Among the issue that should be included in your analysis are: A. The first year retirement income. B. The total lump sum needed for retirement under capital liquidation method. C. The value of the financial resources available for retirement. D. The retirement gap or surplus retirement fund. statement of Net worth as at 31/07/2021 RIVI RIVI Cash/Cash equivalent 163,000 Savings account 48,000 Fixed deposits 60,000 Life insurance cash value (for estate) 55,000 Investment assets Quoted Stocks & Shares (for retirement) Refer Sheet2 Refer Sheet2 Unit trusts (for retirement) EPF balance (for retirement) Refer Sheet2 Condominium (for estate) 325,000 Unquoted share (for estate) 165,000 Apartment (for retirement) 275,000 Foreign FD (for education) 250,000 Personal used assets 670,000 Residence (for estate) 365,000 Car 95,000 Jewelleries (for estate) 85,000 Home furnishing 75,000 Golf club membership (for estate) 50,000 TOTAL ASSETS Current liabilities........... 112,000 LT liabilities ......... 457,000 Total liabilities 569,000 Net worth Investment Asset Client Current Age Retirement Age Current Annual Salary Unit trust@8% Stock @ 10% Existing EPF@5.5% 131,100 Amin 31 55 95,000 115,000 135,000 1. As a financial planner you are required to design and recommend a retirement plan to your client. The appropriateness of the plan will usually depend on how well it serves the need and objective of the client. Based on the given data, extracted from the client's fact- finding sheet, you are required to analyze their financial data. Note: Rate of return during retirement is 5%. Inflation rate is 3.5% Salary growth rate is 4% EPF contribution is 23% of annual salary. The first-year retirement income (calculated in today's dollar) is 65% of the salary. All clients are assumed to remain in retirement period until age 75. QUESTION: Among the issue that should be included in your analysis are: A. The first year retirement income. B. The total lump sum needed for retirement under capital liquidation method. C. The value of the financial resources available for retirement. D. The retirement gap or surplus retirement fund. statement of Net worth as at 31/07/2021 RIVI RIVI Cash/Cash equivalent 163,000 Savings account 48,000 Fixed deposits 60,000 Life insurance cash value (for estate) 55,000 Investment assets Quoted Stocks & Shares (for retirement) Refer Sheet2 Refer Sheet2 Unit trusts (for retirement) EPF balance (for retirement) Refer Sheet2 Condominium (for estate) 325,000 Unquoted share (for estate) 165,000 Apartment (for retirement) 275,000 Foreign FD (for education) 250,000 Personal used assets 670,000 Residence (for estate) 365,000 Car 95,000 Jewelleries (for estate) 85,000 Home furnishing 75,000 Golf club membership (for estate) 50,000 TOTAL ASSETS Current liabilities........... 112,000 LT liabilities ......... 457,000 Total liabilities 569,000 Net worth Investment Asset Client Current Age Retirement Age Current Annual Salary Unit trust@8% Stock @ 10% Existing EPF@5.5% 131,100 Amin 31 55 95,000 115,000 135,000
