Puan Noorsah worked as senior Human Resource Executive in a private company and makes net income of RM60,000 a year. She is 36 years old and married with 2 children which are aged 9 and 11. En. Ahmad Fazal is her husband with 41 years old. He is working as an engineer in a manufacturing company. Puan Noorsah did an unit trust investment, her current investment balance is RM60,000 with earnings of 5% per annum. She keeps RM5,000 in her current account and RM30,000 in an emergency savings account without interest. Besides that, she has a house worth RM450,000 where she wants to live in retirement. However, there is still has RM90,000 of housing loan, she pays RM800 per month. She also has two years old car with current market value of RM65,000 and the current car loan is RM70,000, she needs to pay RM660 per month. Puan Noorsah has a life insurance but do not have personal accident insurance. She pays RM250 per month for this cover. In addition, Puan Noorsah has an outstanding debt of RM1,200 for her credit card, she pays RM100 per month. Puan Noorsah keen to have her budgeting for her expenses when she wants to spend: RM80 per week on food for herself RM50 per week on petrol for her car RM250 per month on groceries RM120 per month on electricity RM60 per quarter on water (3 months once) RM10,000 a year on leisure, vacations, etc.

Calculate retirement fund for Puan Noorsah and her children education fund: (a) Puan Noorsah will retire at age 60. Please calculate how much she needs to save in a month in order to have RM50,000 per year for her retirement with the inflation rate of 4% per year. (b) Child 1: Current age: 9 Start school at age: 18 Years in school: 9 Current annual Undergraduate tuition fees for Arts & Social Sciences course in private university Malaysia: RM38,500 Tuition inflation rate: 4% How much Puan Noorsah needs to save in a month? (c) Child 2: Current age:11 Start school at age: 18 Years in school: 7 Current annual Undergraduate tuition fees for Sciences course in private university Malaysia: RM40,500 Tuition inflation rate: 4% How much Puan Noorsah needs to save in a month?

2) What should you advice with any extra money that Puan Noorsah has?