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.

Among the issue that should be included in your analysis are:

1. The first year retirement income.
2. The total lump sum needed for retirement under capital liquidation method.
3. The value of the financial resources available for retirement.
4. The retirement gap or surplus retirement fund.

Note:

1. Rate of return during retirement is 6%.
2. Inflation rate is 4%
3. Salary growth rate is 4.5%
4. The first year retirement income (calculated in today's dollar) is 70% of the salary.
5. All clients are assumed to remain in retirement period until age 75.

it must show all the calculations including the table for finding the future value of the current and future resources, EPF projection, capital liquidation, determining whether retirement gap exist and your chosen method to fill up the gap (if necessary).

it also required to prepare a retirement plan adopting capital conservation approach, whereby the client prefer to have a minimum sum of RM500,000 available for their dependent.

sheet 1