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 clients 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 todays 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.

Statement of Net Worth as at 31/12/2019 RM RM 1 3 Refer Sheet2 48,000 4 5 36,000 6 7 2 Cash/Cash equivalent Savings account Fixed deposits Life insurance cash value (for estate) Investment assets Quoted Stocks & Shares (for retirement) 8 Unit trusts (for retirement) 9 EPF balance (for retirement) 10 Condominium (for estate) Unquoted share (for estate) 12 Apartment (for retirement) 13 Foreign FD (for education) Personal used assets Residence (for estate) 75,000 Refer Sheet2 Refer Sheet2 325,000 11 180,000 250,000 100,000 14 670,000 15 365,000 16 Car 95,000 Jewelleries (for estate) 17 85,000 18 Home furnishing 75,000 19 50,000 Golf club membership (for estate) TOTAL ASSETS 20 21 22 Current liabilities... 112,000 23 LT liabilities 345,000 24 Total liabilities 457,000 25 Net worth 26 NET WORTH + LIABILITIES Client Current Age Retirement Age Current Annual Salary Investment Asset Existing Unit EPF@5.5% trust@8% 173,880 200,000 1 32 55 108000 Statement of Net Worth as at 31/12/2019 RM RM 1 3 Refer Sheet2 48,000 4 5 36,000 6 7 2 Cash/Cash equivalent Savings account Fixed deposits Life insurance cash value (for estate) Investment assets Quoted Stocks & Shares (for retirement) 8 Unit trusts (for retirement) 9 EPF balance (for retirement) 10 Condominium (for estate) Unquoted share (for estate) 12 Apartment (for retirement) 13 Foreign FD (for education) Personal used assets Residence (for estate) 75,000 Refer Sheet2 Refer Sheet2 325,000 11 180,000 250,000 100,000 14 670,000 15 365,000 16 Car 95,000 Jewelleries (for estate) 17 85,000 18 Home furnishing 75,000 19 50,000 Golf club membership (for estate) TOTAL ASSETS 20 21 22 Current liabilities... 112,000 23 LT liabilities 345,000 24 Total liabilities 457,000 25 Net worth 26 NET WORTH + LIABILITIES Client Current Age Retirement Age Current Annual Salary Investment Asset Existing Unit EPF@5.5% trust@8% 173,880 200,000 1 32 55 108000