The COVID-19 pandemic has definitely given a devastating impact on the world community. As predicted, many of the worlds population have lost their jobs including those working in the tourism and hospitality sectors. That happened to one of the pilots in Malaysia, Senior First Officer Ramesh Roa. Over 10 years as a pilot, no doubt he was sad when he got a letter of termination of service. He was part of an individual who lost his career and source of income. However, it did not break the spirit of this former pilot.

Mr. Ramesh daily routine has now changed, if he used to be busy in the cockpit of the plane, but now he has to continue living by farming in the village (Sungai Siput, Perak). His daily life started as early as 7am. Armed with the spirit and support of his family, Ramesh cultivated 10 acres of his late father's land in the village and turned it into a chilli farm. He has allocated his RM50,000 saving for the chili farm using fertigation method. Despite having to get used to the agricultural sector, the results were not disappointing. In fact, his family has been involved in agriculture for a long time.

Mr. Ramesh has been happily married for 5 years with two children, Rajesh (4 years) and Reena (2 years) and his wife (Logeswary) is a homemaker. He has a dream that he wants his children to be a lawyer and a doctor. Currently, Mr. Rameshs is living in his late fathers house, and he is thinking of selling his own Semi-D house in Kota Kemuning that he bought 8 years ago. The reason for selling the house was due to inability to service the loan instalment for another 27 years, approximately RM3,000 per month and moreover nobody is living there. Then, using the earnings from the sale to renovate his late fathers house. However, his wife has shown an interest in buying a new single storey terrace house.

Mr. Ramesh owns a Honda Civic that he bought 9 years ago (fully settled). The condition of the car is still good because of regular maintenance and low mileage (due to travel). However, he also has the intention to buy a pickup or small lorry below RM80,000 for his farm. However, he is undecided on the duration of the car loan, either 7 years or 9 years. He also has a plan to borrow RM100,000 loan from Malaysian Agricultural Bank to finance his farm and is thinking to put his late fathers house as a collateral for the loan. Mr. Ramesh also has a remaining education loan of RM30,000 that need to be settled within 2 years.

Both his parents passed away from a heart attack and diabetes. Currently, Mr. Ramesh is in good health and that is one of the main reasons why he does not possess any medical insurance. When he was still working in the airline company, the company provides group medical insurance to its staff including Mr. Ramesh. During the meeting, Mr. Ramesh seeks your opinion on investment planning and financial goals. Based on your experience and financial knowledge as a certified financial planner, advise him professionally regarding his saving, investment, education, insurance and retirement portfolio in order to achieve his financial goals. You are required to prepare a financial goal for Mr. Ramesh as your client.

Question

Financial Goal Summarize the financial goals of your client in the table below. There should at least be one short-term, medium term and long-term goal respectively. The example of a summary table is as follows:

SMART concept specifically to each of the above financial goals. Provide a short write up to explain to explain ach of your plans above.

Goal Emergency funds Horizon Short Term Target years (2022 to 2023) 1 year Amount (RM) XXXX Goal Emergency funds Horizon Short Term Target years (2022 to 2023) 1 year Amount (RM) XXXX