Mr Nam, a 40-year-old banker, has 15-year experience working in the banking industry as a credit risk manager in Ho Chi Minh City. Currently, he needs some advice for his retirement at the age of 60 with a life expectancy of 90. Remarkably, he has some particularly planned expenses after retirement as follows. First, estimating his current annual basic living expenses (i.e., foods, transportation, entertainment, etc.) of 120 mil VND, he intends to maintain such expenses when he retires. Second, he has a one-year-old son now, and he plans to send his son to study Master of Business Administration in Australia for two years when his son turns 22. Third, he loves travelling, so he also wants to travel around Europe with his wife from 60 to 65 when he is free of work. Forth, as a risk manager, he thoroughly sets a budget for his familys annual health care services around 1 bil VND in total from the age of 65 onwards. Last, buying a 2-floor house in the suburban area in Ho Chi Minh City at the age of 65 is also his expectation. With the current annual income of 200 mil VND and a long-term bank deposit account of 1 bil in BIDV, he is thinking about investing in the financial market to have sufficient money, preparing for his retirement. He also indicates that his level of risk tolerance seems to decrease when getting older, but his expected rate of return after retirement is still a bit higher than that of bank deposit. As a personal financial consultant, you are requested to help Mr Nam prepare for his upcoming retirement with some specific requirements as follows: - Quantify Mr Nams expenses after retirement regarding their current market value. - Determine the appropriate rate of returns for different stages of his life (i.e., before and after retirement) and state your reasons for those calculations. - Calculate the total value of money needed at the age of retirement to sufficiently cover all expenses after retirement. - Calculate the required annual savings invested in the financial market to achieve the necessary amount of money at the retirement age. - Advise Mr Nam how he should respond regarding his actual annual savings and his required annual savings just calculated above. Assume that his annual income increases 3% every year.