Alex hasbeen working as a Sales Manager for a trading firm for 5 years. At age 40, he isdivorced with one child, Sunny, aged 10. Alex's annual salary is about $480,000.

You, as a wealth manager, had a meeting with Alex last month and that was the first time you met him. Based on the following data, preparea personal balance sheet, and an income statement for Alex (you should show both figures and percentages).

Which financial ratios seem to be useful to reflect his current financial position ?

What are your suggestions (including some SMART goals) for him ?

(In your answers, make assumptions as appropriate)

ASSETS (HK$) Amount Retirement benefits 150,000 Money market funds 70,000 Mutual funds on stocks 50,000 Checking account balance 30,000 Personal property 80,000 Automobile (after depreciation) 120,000

LIABILITIES (HK$)

Credit card outstanding 60,000 Other short-term loans 80,000

ANNUAL EXPENSES (HK$) Auto insurance 7,800 Rent 180,000 Utilities 12,000 Phone 4,000 Food 30,000 Uninsured medical/dental expenses 6,000 Personal care 4,000 Gas, maintenance, license 22,000 Clothes 15,000 Entertainment 18,000 Vacation travel 20,000

Child care 55,000 Gifts 3,000 Miscellaneous 3,000 Taxes 25,000 Health insurance 24,000

*Please elaborate. Thanks a lot!*