Guidelines for the project

The project will enable the students to prepare their personal budgeting and investment planning in the long run. Students are expected to come out with their long-term financial planning including insurance plan, children education plan, retirement plan and others. Before making their financial planning, students must answer the following questions:

1. How old are you now?
2. Are you a male or a female?
3. At what age do you expect to graduate?
4. At what age do you expect to start your career?
5. How much is the monthly salary you expect to get on your first job?
6. How much is the yearly salary increment that you anticipate?
7. How much of your basic salary will be contributed to the Employee Provident Fund (EPF)?
8. How much of you basic salary goes to Income Taxes?
9. How much do you expect to spend on housing, food, transportation and other living expenses per month?
10. Do you plan to buy a car? At what age do you think you will buy a car?
11. Do you plan to buy a house? At what age do you think you will buy a house?
12. Do you have any plans to get married? At what age do you plan to get married?
13. How many children do you plan to have?
14. How old will you be when you children are in college or university?
15. At that time, how many years to retirement do you have?
16. At what age do you expect to retire?
17. How many years after retirement you expect to live?
18. Do you believe that there is a possibility that you will meet a premature death?
19. Hove you ever thought of what would happen to your spouse and children if you died?
20. Do you have enough savings and asset for them? If you dont, how do you go about it?

Answer that has been answered for the rest 20 questions are below: INTRODUCTION

For this assignment, we will be portraying the personal budgeting and investment planning of a 23 year old male student. He is expected to graduate when he is 25 years old and is aiming to start working at 26 years old.

Once he graduates, he aims to be a junior executive finance. After doing some research, it is found that an entry level junior executive finance with less than one year experience can expect to earn an average of RM30,000 annually. This includes cost of living allowances, tips, bonuses, and overtime pay. However, junior executives in Malaysia observe a salary increment of 12% every 14 months on average. Therefore, he can expect a monthly salary of RM2,000-RM3,000 on his first job with a salary increment of 12% every 14 months.

1. 23 years old

2. Male

3. 24 years old expected to graduate

4. 25 years old to start career

5. Monthly salary expected 2,800

6. Salary increment 12% every 14 months

7. EPF 24% (Employer, 13% Employee, 11%)

Employer (13%) monthly	RM364
Employee (11%) monthly	RM308

8. Income tax rate for the first year - 3% from RM20,000. For the next year 3% from RM15,000

9. Housing expense (Rent) - RM600, Utilities expense - RM100, Food & Groceries expense - RM400, Transportation expense - RM150, Insurance expense (AIA) - RM180, Entertainment expense - RM150

10. Yes. He plans to buy Perodua Axia. (RM38,000) Down payment 30% (RM11,400). Monthly car payment includes a 3% interest rate - RM238.91 for 9 years. He expects to buy the car when he is 26 years old.

11. Yes he plans to buy a house when he turns 30 years old.

Location	Selangor, Salak Tinggi
Type of house	Apartment (Rumah SelangorKu)
Property price	RM230,000-RM250,000
Down payment	RM23,000 (10% from house price)
Loan period	25 years
Interest rate	4.5%

12. Yes he has plans to get married by the age of 28 years old. Once he gets married, he and his spouse will share the commitments such as the monthly expenses, housing loan and car payments.

13. He plans to have two children.

14. He will probably be around 48 years old when his children go to college.

Children Education Planning (Tabung Haji)

Start age	30 years old
Monthly allocation per child	RM100
Yearly amount	RM1,200
Average expected dividend per year	8%
Total amount after 18 years (Future Value)	(RM1,200 x 18 years) x [(1 + 0.08)^18] = RM86,314.02

15. He will probably have around 10 years left to retire.

16. 58 years old

17. 12 years after retirement to live

18. Probably not. (Healthy lifestyle, safe neighbourhood etc.)

19. Yes

20. Yes, they will have enough savings because he has life insurance. The insurance company will pay a lump sum known as a death benefit to your beneficiaries after your death. He also has savings from EPF and SOCSO.

for the next questions, followed by above information :

students should be able to grasp the importance of short and long- term personal financial planning. Students are reminded to put more emphasis on the short-term financial planning and justifications are needed for each financial plan that he or she has made. Each couple is expected to write the report based on the relevant questions above and also, on the financial products that are available in the market. It is very important for student to obtain information on:

the following questions are do a study for Unit Trust (use Malaysia unit trust) & Health Insurance (use Malaysia Insurance) Please answer it with long explanation......