1. Define 'term' and 'cash value' insurance policies and discuss the advantages and disadvantages of these two types of policy from the insured party's point of view. 2. Discuss the preferred retirement benefit plan (defined benefit or defined contribution) from employer's and employee's perspective. 3. Setting up a trust is essential and justified for some people to handle their estates. Explain a typical trust and discuss how a trust provides benefits to these people but not everyone. 4. a. Thomas is a System Analyst aged 40 and plans to retire in 15 years. His current portfolio includes $7 million cash and mutual funds (international stock and bond funds which can be liquidated easily into cash) plus a free-of-mortgage property with a current market value of $10 million. He predicts that $25 million should be sufficient for his retirement to cover the living, medical, entertainment and emergency expenses etc. Assume that he can contribute at least $150,000 every year to his retirement fund, use the financial calculator to calculate the approximate annual rate of return he must get from his $7 million funds and future contributions (excluding the property) to achieve his retirement goal. (Show your calculations clearly and keep your answer in 2 decimal places). (10 marks) b. Based on your answer, what is/are the investment products that may be suitable to him ? (15 marks)