Scenario Personal Financial Plan for "Jack and Jill" Jack and Jill are married and a middle-aged couple. In order to achieve their goals, they hope to retire and must, therefore, ensure they have enough savings to cater for their needs in their golden days. As a married couple, they have made several investments and are not sure whether their insurance coverage is adequate. They are not sure whether they have enough financial resources to last them for the rest of their lives. Personal Financial Plan Assumptions 1. Retirement: Jill would like to retire at age 65; and Jack would prefer to retire when he is 67. 2. 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) Jill's EPF - RM400,000 Jack's EPF account (RM520,000) Home is worth RM388,000 with a RM120,000 mortgage at a 4.5% interest rate Jack's car is 3 years old and worth RM27,000. The loan balance is RM9,500. 3. Insurance Coverage Jack's life insurance coverage is through work (RM305,000) at RM100/month. Jill's 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. You are required to create a feasible personal financial plan by considering the financial situation, goals and implement them. 1. Determine the financial situation and strategies - net worth statement, cash flow statement, debt reduction, savings and personal financial ratios. 2. Insurance Analysis 3. Investment Analysis 4. Estate Plan Review Scenario Personal Financial Plan for "Jack and Jill" Jack and Jill are married and a middle-aged couple. In order to achieve their goals, they hope to retire and must, therefore, ensure they have enough savings to cater for their needs in their golden days. As a married couple, they have made several investments and are not sure whether their insurance coverage is adequate. They are not sure whether they have enough financial resources to last them for the rest of their lives. Personal Financial Plan Assumptions 1. Retirement: Jill would like to retire at age 65; and Jack would prefer to retire when he is 67. 2. 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) Jill's EPF - RM400,000 Jack's EPF account (RM520,000) Home is worth RM388,000 with a RM120,000 mortgage at a 4.5% interest rate Jack's car is 3 years old and worth RM27,000. The loan balance is RM9,500. 3. Insurance Coverage Jack's life insurance coverage is through work (RM305,000) at RM100/month. Jill's 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. You are required to create a feasible personal financial plan by considering the financial situation, goals and implement them. 1. Determine the financial situation and strategies - net worth statement, cash flow statement, debt reduction, savings and personal financial ratios. 2. Insurance Analysis 3. Investment Analysis 4. Estate Plan Review