Owen has a stable and well paid job. He earns $250,000 per annum. He decides to start saving for his retirement. He plans to retire at age 65, i.e. in 30 years. He has confidence that he could save $3,000 per month in a retirement fund in the coming 30 years. The retirement fund is offered by a licensed bank in Hong Kong and will provide 4% return annually. REQUIRED

a) Calculate the amount of money Owen would have saved in his retirement fund by the time he retires. Use the formula method and shows all workings. (5 marks)

b) If Owen expects that he would live for another 28 years after retirement, how much could Owen withdraw monthly from his retirement fund after retirement, assuming the rate of return remains the same? Use the formula method and shows all workings. (5 marks)

c) With reference to the data in parts (a) and (b), write down Owens financial goal, using the SMART approach. (Hint: Please refer to Topic 1s suggested tutorial answer for the sentence structure of a financial goal.) (Word limit: 60 words) (6 marks)

d) Describe Hong Kongs Deposit Protection Scheme. Under this scheme, will Owens money in the retirement fund be protected? If yes, what is the amount of protection Owen is entitled to receive if the bank closes down six years later? Briefly explain. (word limit: 150 words) (6 marks)