Alfred Lee (45 years) and Alison Cheng (42 years) have been married for the past eight years. They have a child, Jonathan Lee, aged 6 years old. The couple would like Jonathan to have an overseas education at a reputable university. Both Alfred and Alison are currently employed. Mr Lee and his wife adhere to a strict budget and after all considerations assume that the household cash surplus that the couple is able to set aside RM3,500 per month. They plan to allocate this equally for their childs education and retirement fund.

Other information available are as follows for the year ending 31 December 2021:

	RM (per month)	RM (Per annum)
Mortgage loan	See note below
Car instalment (2 cars)	3,000
Insurance and road tax		2,500
Food	1,500
Utilities (Electricity and water)	300
Astro and Internet	200
Clothing		1,000
Petrol, parking and toll	350
Household expenses	600
Family entertainment Quit rent and assessment	700	500

Balance outstanding as at 31 December 2021:

	RM
Savings account	15,300
Fixed deposit	36,780
Credit card outstanding	6,450
Mortgage loan outstanding	xx
Car loans outstanding (2 cars)	56,720

Note: The property they are residing in was purchased via a 25-year mortgage loan. The current value as at 31 December 2021 of the landed property located in Puchong was RM560,000. The initial amount of loan taken was RM465,300 and the value of the property when it was purchased 10 years ago was RM517,000. The interest rate of the loan was 4%. The first instalment of the loan was paid on 5 February 2012. The current re-sale value of the cars that they own is RM37,630. The current Employee Provident Fund balance for Alfred Lee is RM95,500 and for Alison Cheng is RM65,000. Mr Alfred holds 5,000 units of Public Bank shares valued at RM20,700 and 8,000 shares of Sunway Construction Group valued at RM12,480. At the moment Mr Alfred would like to send Jonathan to Australia or England to further his university studies while Ms Alison differs in opinion. Ms Alison would like Jonathan to be closer to home and do his studies in Malaysia.

Required: (i) Net worth and Pre-investment planning (20 Marks) Evaluate whether the Lees currently have adequate amount of emergency funds. Determine the net worth of the Lee household. Discuss three (3) important factors that the Lee household must consider before they embark on longer-term financial planning besides having adequate emergency funding. Explain your answers clearly. All calculations must be supported with proper breakdown and rationales.