1. The value of the financial resources available for retirement.

As a financial planner you are required to design and recommend a retirement plan to your client. The appropriateness of the plan will usually depend on how well it serves the need and objective of the client. Based on the given data, extracted from the clients fact finding sheet, you are required to analyze their financial data.

Statement of Net Worth as at 31/12/2019	RM	RM
Cash/Cash equivalent		134,000
Savings account	50,000
Fixed deposits	48,000
Life insurance cash value (for estate)	36,000
Investment assets
Quoted Stocks & Shares (for retirement)	75,000
Unit trusts (for retirement)	Refer Sheet2
EPF balance (for retirement)	Refer Sheet2
Condominium (for estate)	325,000
Unquoted share (for estate)	180,000
Apartment (for retirement)	250,000
Foreign FD (for education)	100,000
Personal used assets		670,000
Residence (for estate)	365,000
Car	95,000
Jewelleries (for estate)	85,000
Home furnishing	75,000
Golf club membership (for estate)	50,000
TOTAL ASSETS
Current liabilities..	112,000
LT liabilities .	345,000
Total liabilities		457,000
Net worth
NET WORTH + LIABILITIES

Note:

1. Rate of return during retirement is 6%.
2. Inflation rate is 4%
3. Salary growth rate is 4.5%
4. EPF contribution is 23% of annual salary.
5. The first year retirement income (calculated in todays dollar) is 70% of the salary.
6. All clients are assumed to remain in retirement period until age 75. Client information :

7. Client	Current Age	Retirement Age	Current Annual Salary	Investment Asset
   				Existing EPF@5.5%	Existing Unit trust@8%	Future Unit trust contibution p.a.
   3	30	55	84,000	96,600	150,000	4800