Gary and Cynthia age 32 & 30-year old respectively and have a son aged 3.

Gary and Cynthia's Financial Needs :

Completely fund the university education for their son.

Probably buy a new car for HK$450,000 in about 3 years.

Maintain their current living standards after retirement.

Establish an investment portfolio and/or other arrangements for their retirement.

As a Wealth Manager, how do you write a wealth management plan for the couple with full analysis of risks and returns in order to achieve their goals. You should analyze the situation, address related issues and give appropriate recommendations.

Assets and Liabilities of Gary and Cynthia as at December 31, 2021

Liquid Assets HK$

Cash & Checking A/C balance 250,000

Savings A/C balance 600,000

Investments

Mutual Funds 300,000

Local Stocks 500,000

Retirement Plan

Mandatory Provident Fund 700,000

Housing

Apartment at Kwun Tong (market value) 6,500,000

Automobile

Car at market value 50,000

Personal Property

Watches & Jewelry 150,000

Furniture & Appliances 80,000

Current Liabilities

Current Bills (unpaid balance) 0 (Pay their bills on time)

Long-term Liabilities

Mortgage Loan 2,200,000

Other Loans

Personal Loan 80,000

Insurance Coverage Gary Cynthia

Life Insurance $1,500,000 $1,500,000

Income & Expenses Data of Gary and Cynthia for the year 2021

Income (annual)

Salary (after tax) Gary 600,000

Salary (after tax) Cynthia 150,000

Expenses (annual)

Mortgage payments 100,000

Utilities 24,000

Management Fees 24,000

Taxes 42,000

Other household expenses 30,000

Food and supplies 80,000

Restaurant Expenses 25,000

Clothing 50,000

Personal care 6,000

Car Loan payments 30,000

Gas, Tolls, Parking 65,000

Repairs 10,000

Entertainment and Vacation 30,000

Medical Expenses 15,000

Insurance Life, automobile 36,000

Education expenses 40,000