3.

0 Financial Plan Summary

3.1 Cash Flow Management

Penelope has a well-managed cash flow in the current situation. The surplus of

RM 49,359 from annual cash flows is sufficient to meet her needs and wants at the

current status. According to her cash flow statement, she is not fully utilized her

financial well. This will shorten the time in achieving her financial goals. She has

sufficient liquidity to cover her expenses for 3 months if there is any uncertainty event

happened to her. Her saving ratio is too high, we do not recommend her to put all her

surplus in saving. The surplus can be used in investment in other to maximize her

money.

3.2 Risk Management/ Insurance

Penelope’s critical illness and personal accident are sufficient to cover her medical

expenses in the event of illness or disability. However, she need to purchase one more

insurance policy to cover her mortgage loan and car loan.

3.3 Retirement Planning

Based on the assumptions made, her current assets and cash flows accumulated in the

future are sufficient for her retirement expenses at age 55. However, Penelope wishes

to retire at the age 45. As the cash accumulated in the EPF account can only withdraw

at the age 55, she needs to generate sufficient income for the 10 years in order to

cover her 10 years’ expenses after she retire.

3.4 Investment Planning

Her main objective is to be financially free at the age 45 and quit working. Her desire

of RM 8,000 per month can be achieved by her investment in the future value. Her
second desire to set up a trust fund to benefit spastic children by age 45 is achievable

by well-managed investment.

3.5 Estate Planning

She currently has no will. We recommend her to do a will so that her assets will pass

on securely to her parents. We able to provide will writing and trust creation service if

her marital status change.

3.6 Tax Planning

Her desire is to pay minimum income tax. We recommend her to purchase a home

computer to get a RM 3,000 relief and a rebate of RM 500 from the tax payable.

Besides, we recommend her to do donation to approved organization in order to get

rebate to minimize her tax payable.