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Retirement: Jill would like to retire at age 65; and Jack would prefer to retire when he is 67. Asset evaluation Cash & Cash equivalents
- Retirement:
- Jill would like to retire at age 65; and
- Jack would prefer to retire when he is 67.
- Asset evaluation
- Cash & Cash equivalents (bank accounts/CDs/Money Market) RM100,000
- Brokerage account (stocks/bonds) RM315,000 current value
- Retirement Annuity (RM250,000 current value)
- Jills EPF - RM400,000
- Jacks EPF account (RM520,000)
- Home is worth RM388,000 with a RM120,000 mortgage at a 4.5% interest rate
- Jacks car is 3 years old and worth RM27,000. The loan balance is RM9,500.
- Insurance Coverage
- Jacks life insurance coverage is through work (RM305,000) at RM100/month.
- Jills life insurance coverage is a whole life policy (RM95,000 death benefit, RM25,000 cash value) at RM85/month.
- Jack has taken a disability policy to compensate him if he becomes disabled through work which replaces 60% of his income and Jane has no disability insurance.
3. Other Situation Details
- Jill is currently self-employed.
- Jack grosses approx. RM140,000 per year; Jill makes approx. RM50,000.
- They spend approximately RM6,000 a month on basic living expenses like utilities, entertainment, basic needs like food, property tax, and other expenses.
- The overall fixed income to equity ratio is about 40% fixed income and 60% equities (40/60) of all investable assets.
- The couple has not drafted a will.
What is required from you
You are required to create a feasible personal financial plan by considering the financial situation, goals and implement them.
A) Determine the financial situation and strategies - net worth statement, cash flow statement, debt reduction, savings and personal financial ratios.
B )Insurance Analysis
C) Investment Analysis
D) Estate Plan Review
* no taxation rate
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