Malaysia Financial Planning

Question 2 Zulekha, 45, is a divorcee. She lives in Klang with her 2 children who are aged 7 and 11 respectively. Zulekha works as a nurse at Subang Jaya Hospital. She travels more than 60 kilometers daily commuting to and fro between her home and office. She leaves home at dawn and reaches home late at night almost every day. She sends her children to the baby sitter in the neighborhood that charges RM1,400 a month. As inflation keeps increasing, Zulekha finds it tougher to make full payment on her credit card spending. Therefore, she only pays 5% minimum payment on the credit card outstanding balance. Table 1 below shows a summary of the things that Zulekha owns, owes, monthly instalment payments as at 31 December 2019. Table 1 Balance (RM) Monthly instalment payments (RM) Cash 3,000 Mutual Funds 10,000 Car Loan 60,000 1,800 Housing Loan 500,000 2,400 EPF Contributions 160,000 Jewelry 6,000 Property Market Value 700,000 Car Market Value 50,000 Hire-purchase - Home theatre system 6,000 700 Credit card outstanding 6,000 300 Table 2 provides further details of Zulekha's income and expenses. Except for the monthly salary, all items are stated on per year basis. The salary and bonus are fixed allowances which are subjected to EPF contributions of 11%. Zulekha contributes about RM30 per month to her SOCSO insurance. Table 2: Zulekha's income and expenses RM 8,000 16,000 1000 Monthly salary Yearly bonus Magazine subscriptions and books Takaful life insurance premiums Education insurance premiums Medical insurance premiums 3,200 2,000 3,000 Required: (1) Compute Zulekha's net worth. (6 marks) (ii) Compute Zulekha's net monthly income and debt to net income ratio. (4 marks) (iii) Discuss Zulekha's financial situation based on AKPK's guidelines. (4 marks) (iv) Provide four (4) other pieces of advice that you could offer Zulekha to improve her financial situation. (8 marks) Question 2 Zulekha, 45, is a divorcee. She lives in Klang with her 2 children who are aged 7 and 11 respectively. Zulekha works as a nurse at Subang Jaya Hospital. She travels more than 60 kilometers daily commuting to and fro between her home and office. She leaves home at dawn and reaches home late at night almost every day. She sends her children to the baby sitter in the neighborhood that charges RM1,400 a month. As inflation keeps increasing, Zulekha finds it tougher to make full payment on her credit card spending. Therefore, she only pays 5% minimum payment on the credit card outstanding balance. Table 1 below shows a summary of the things that Zulekha owns, owes, monthly instalment payments as at 31 December 2019. Table 1 Balance (RM) Monthly instalment payments (RM) Cash 3,000 Mutual Funds 10,000 Car Loan 60,000 1,800 Housing Loan 500,000 2,400 EPF Contributions 160,000 Jewelry 6,000 Property Market Value 700,000 Car Market Value 50,000 Hire-purchase - Home theatre system 6,000 700 Credit card outstanding 6,000 300 Table 2 provides further details of Zulekha's income and expenses. Except for the monthly salary, all items are stated on per year basis. The salary and bonus are fixed allowances which are subjected to EPF contributions of 11%. Zulekha contributes about RM30 per month to her SOCSO insurance. Table 2: Zulekha's income and expenses RM 8,000 16,000 1000 Monthly salary Yearly bonus Magazine subscriptions and books Takaful life insurance premiums Education insurance premiums Medical insurance premiums 3,200 2,000 3,000 Required: (1) Compute Zulekha's net worth. (6 marks) (ii) Compute Zulekha's net monthly income and debt to net income ratio. (4 marks) (iii) Discuss Zulekha's financial situation based on AKPK's guidelines. (4 marks) (iv) Provide four (4) other pieces of advice that you could offer Zulekha to improve her financial situation. (8 marks)