Mr. Peter Chan age 35, married. He is working as an IT consultant in a FinTech company and his monthly salary in 2020/21 is $70,000.00. Usually, Mr. Chan receives a cash incentive $100,000.00 at each year-end.

Mrs. Chan, Mimi, age 32. She is working as an accountant in a trading company and her monthly salary in 2020/21 is $50,000.00. Mrs. Chan is entitled to have one-month year-end bonus.

Both now are living with Peter Chans mother, who is a retiree at age 65.

Assets of Joseph and Mimi:

1. Bank deposit

2. Mutual fund investment

3. Share

4. Life Insurance protection

Asset of Peter Chans Mother: 5. Self-occupied apartment

Liability: 6. Current mortgage loan outstanding:

$400,000.00 $500,000.00 $300,000.00 $1,000,000.00 (Mrs. Mimi Chan only)

$8,000,000.00 (current market value)

$2,000,000.00 (to be paid up in 10 years)

Peter and Mimi have a son Mark, aged 3 now. They would like to set up an education fund for Mark. Assume Mark will study in Hong Kong for tertiary education at the age of 18.

Peter plans to move out from his mothers apartment after 3 years and would like to purchase a flat nearby. The budget is $10,000,000 by then.

The current household expenditure is $60,000 per month, including the current monthly mortgage payment HKD20,000. In addition, they want to provide $9,000 per month to Peters mother as pocket money after they move out.

Peter and Mimi want to seek advice from you, as a financial planning expert, to achieve their financial goals. In addition, you should also identify and give advices on the risk management position of the family.

Common Assumptions:

a. Estimated average annual rate of inflation for the whole period: 3% p.a.

b. YOU SHOULD MAKE ANY REASONABLE ASSUMPTIONS BY YOUR OWN TO FACILITATE THE CALCULATION.

Hints:

1. You should provide a financial plan showing detailed calculations on how you achieve the proposed figures.

2. To estimate the financial needs and available resources.

3. To calculate the difference between the need required and the available

   resources.

4. To design and implement a plan to accumulate sufficient funds for education

   expenses (for the 4 years University study of Mark) and purchasing new

   property.

5. To make use appropriate insurance products for risk management or the like.