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Introduction: Peter Pan was born in Hong Kong and is now 28 years old. Peter is currently a nutritionist working at a private nutritional diet
Introduction: Peter Pan was born in Hong Kong and is now 28 years old. Peter is currently a nutritionist working at a private nutritional diet centre with a monthly salary of $35,000 (No double pay or bonus). Meanwhile, his monthly personal expenditure is around $18,000. Peter is covered by a group medical insurance policy (basic plan) offered by his employer. Other than that, he does not have any other personal insurance policy on hand. Peter is living with his parents but he will get married very soon. His fiance is an assistant marketing manager working in a listed corporation in Hong Kong with a monthly salary of $30,000 (No double pay or bonus). Peter does not own any property; he wants to buy a second-hand residential property valued at around $7,000,000 and pay a 10% down payment after marriage. As a financial planner for Peter, you have collected his personal information and will conduct an initial assessment of his financial situation. You have drawn up a simple personal balance sheet for him as follows: The following shows the other information or assumptions: 1. Peter plans to retire at 65 years old and his life expectancy is 22 years after retirement. 2. Peter's risk tolerance level is moderate. 3. The long-term average inflation rate in Hong Kong is estimated to be 3% per annum. 4. The normal rate of return on investment is projected to be 4% per annum. 5. Assume the prime rate in Hong Kong is 5% per annum. Joyce wants to attain or fulfil the following financial goals at the same time: - Retirement goal Investment goal - Protection goal - Consumption goal However, she only has limited resources for attaining the goals at the same time. What is your suggestion/advice to her? (5 marks) Introduction: Peter Pan was born in Hong Kong and is now 28 years old. Peter is currently a nutritionist working at a private nutritional diet centre with a monthly salary of $35,000 (No double pay or bonus). Meanwhile, his monthly personal expenditure is around $18,000. Peter is covered by a group medical insurance policy (basic plan) offered by his employer. Other than that, he does not have any other personal insurance policy on hand. Peter is living with his parents but he will get married very soon. His fiance is an assistant marketing manager working in a listed corporation in Hong Kong with a monthly salary of $30,000 (No double pay or bonus). Peter does not own any property; he wants to buy a second-hand residential property valued at around $7,000,000 and pay a 10% down payment after marriage. As a financial planner for Peter, you have collected his personal information and will conduct an initial assessment of his financial situation. You have drawn up a simple personal balance sheet for him as follows: The following shows the other information or assumptions: 1. Peter plans to retire at 65 years old and his life expectancy is 22 years after retirement. 2. Peter's risk tolerance level is moderate. 3. The long-term average inflation rate in Hong Kong is estimated to be 3% per annum. 4. The normal rate of return on investment is projected to be 4% per annum. 5. Assume the prime rate in Hong Kong is 5% per annum. Joyce wants to attain or fulfil the following financial goals at the same time: - Retirement goal Investment goal - Protection goal - Consumption goal However, she only has limited resources for attaining the goals at the same time. What is your suggestion/advice to her
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