GROUP ASSIGNMENT GUIDELINES (Report 20%, Presentation 5%)

STRATEGIES FOR RETIREMENT PLANNING

1.0 Introduction

Retirement is the time in life when the major sources of income change from earned
income to employer-based retirement benefits, private savings and investments, social security
etc. As you begin your working phase of life, it is good idea to start planning what you will need
to be comfortable during retirement.

The purpose of this assignment is to provide you with an opportunity to do in-depth

independent research. These include to emphasize on the research process, the communication of
ideas and information, and the overall presentation of the research essay.

In this case, you are required to prepare a retirement planning for a husband and wife;
Mr. Zarul and Mdm. Zetty. They are going to retire within 5 to 6 years. Now, they realize that
they require the help of the financial planners who will prepare a statement of advice for them
which will guide the couple to manage their wealth and spend their returement life peacefully
and without thinking about any financial crisis.

You are required to apply your knowledge on the retirement planning and financial
management process to provide recommendation to the clients and make a critical analysis based
on the information of clients below. It is essential to include what are the risks and disadvantages
of the strategy. Clearly, indicate sections of the paper by using headings that indicate where
particular kinds of information can be found. Subheading may also be used in longer sections to
facilitate organization.

2.0 Scope of Advice

The products which are suggested by you are all financial product which are generally
relating to Malaysian equities and international equites along with investments which can be
made in balanced funds. In addition, you can also suggest products which are provided by small
equities in order to enhance the income of clients with the help of such an investment. This
includes, products which are related to life insurance which can help the client in securing their
life.

3.0 Goals and Objectives of the Clients

1
 On the basis of the information which is provided by the clients, the following can be
identified as their goals and objectives which they expect to achieve:

 In a period of approximately 5-6 years the clients are planning to retire which means that
they would be needing an appropriate retirement plan so that their current standards of
living is maintained
 At the time of retirement, the clients want to pay off mortgage loan and also have
appropriate amount of cash in hand for purchasing a new care and for a holiday trip
 The current super funds are not appropriate and therefore the clients want to switch the
current super funds so that proper investments can be made towards securing their future
 The clients also want to establish savings plan for their children and keep a side a sum of
RM50,000 for each
 The client also wants to establish a will so that their wishes are carried out even after
their deaths. (Having will)

4.0 References

Include all references in Harvard Style.

Report Submission: Week 13

Presentation: Week 14
Turnitin: 20% maximum
No of Words: Not too much.

5.0 Formatting

The report should be typed. Please use 1.5 space and 12-point Times New Roman. A title
page and reference list MUST BE INCLUDED. Please use Harvard formatting for your in-text
citations and reference list. In part, the report will be assessed in clarity of writing and logic. This
include grammar, spelling, overall appearance, flow etc.

6.0 Irregularity Assessment

Cheating and plagiarism i.e. the action or practice of taking and using as one’s own the
thoughts, writings or other work of someone else with the intent to deceive, constitute
irregularities as described in the programme handbook. Such actions are a major infringement of
the university’s academic values and will be dealt with severely.

2
Statement of Advice: Mr. Zarul and Mdm. Zetty (Retiree)

This document contains the advice requested by Mr. Zarul and Mdm. Zetty and the cost
details of implementing the advice. The document contains every details of the fianncial
planning that will help them to spend their retirement life smoothly.

1.1 The Scope of Advice

The advice provides planning to increase the wealth of the couple during the time of
theire retirement within 5 to 6 years. The scpe of the report includes the steps of financial
planning and not any recommendation of any specific products.

1. establish &objective and goals for both clients pg6 wht want to achieve
2. relating to RP. Idedntify how much source needed and expenses. Income needed at
their retirement period. What sorue they have –identify pg3-4-5 have lia,expenses and
annual income and expenditure to both. Calculat how mch need in retirement. AT
end of days they want maintain their life style.
3.
1.2 About the Clients

Particulars Mr. Zarul Mdm Zetty

Age 58 years 55 years
Occupation Running a business named ‘Live Employed full time florist in the
wire electrics’ earnings company named ‘ Thanks a
RM140,000 per year Bunch’ with annual salary
RM30,000 plus 8.5% super
annuation guarantee contribution
Health No major health issues Have some minor health issues
Condition
Life Style He maintains a healthy life style She maintains a healthy life style
and does not have any unhealhy
parctices like consumption of
alchohol, smoking and other bad
habits
Diseases There is no background of She has family background of
hereditary diseases or early age genetically diseases (diabetes)
death
Health He has been covered by the She is also covered by the
Coverage’s standard private hospital coverage
standard private hospiotal
coverage
Will He has a current will which is She does not have any will
updated last in the year
2018(should we have a will or
not?popose suggest)
Power of There is no power of attorney of She has no power of attorney.
attorney Zarul

3
Besides that both of them has two self-dependent son a daughter named Zakaria (21 years
old) and Zawiyah (19 years old).
insurance
Assets and liabilities of the couple:
Assets
Details of the property Owner Value
Residence Both RM650,000
Cash and Bank Joint RM14,000
Motor Vehicles Joint RM62,000
Investment Property Joint RM400,000
Home Contents Joint RM125,000
Managed Funds Joint RM85,000
Superannuation income Zarul RM270,000
Superannuation Zetty RM150,000
Holiday Home Joint RM150,000

Liabilities
Nature Owe Value
Mortgage Joint RM150,000
Investment Property Joint RM185,000
Personal Loans Joint RM20,000
Credit Card Single RM2,000

Annual Income and Expenditure

Particulars Zarul (RM) Zetty (RM)
Gross Salary 140,000 30,000
Investment Income 4,750 9,750
Total Income 144,750 39,750
Income Tax 41,850 2,750
Net Income 102,900 37,000
Expenditure Mortgage Prinicple Home 15,252 15,252
Household Expenses 21,000 21,000
Super Life Contribution 10,000 -
Total Expenditure 46,252 36,252
Annual Income 56,448 748

Details of the Superannuation: income

Name of Fund Zarul Zetty
Fund Name Sweet Super Ultimate Future
Type of Fund Retail Retail
Contibution by Employer N/A RM2,850

4
 Personal RM15,000 N/A
Current Value RM270,000 RM150,000
Transfer Value RM270,000 RM150,000
Policy Numbers 9234795 123456
Tax Free Amount RM50,000 RM40,000

Current Investments: explain the LT. any risk? Throught wort retirement . sell
or ??
Descriptions Date Cost Maturity Current Annual
Date Value Income
Investment Property 1/11/2003 RM220,00 - RM400,00 RM16,50
0 0 0
UA Managed Fund 21/04/2010 RM100,00 - RM85,000 RM5,000
0 0

What The Client Want To Achieve:

The Primary Objective of the Client
Objective Details
Retirement Both Zarul and Zetty want to
retire on their 65th birthday
Maximize Age Both of them should try to
pension obtain the maximum age
pension
Income at Retirement Zarul should target RM82,000
per annum to maintain current
lifestyle and Zetty should try
to have RM52,000 per annum
to ensure that the current life
style can be maintained during
the time of retirement,
When
Both of them want retire on
01/07/2027
Both of them obtain their
maximum age pension on
01/07/2026
From 01/07/2025 onwards both
of them should have an annula
income of RM82,000 and
RM52,000 respectively to have
a smooth lifestyle.

Developing a FS or clients
(insurace)Health issue

5
Property liability they have.
Investment bond and stock. In note refer. Any risk? Ms, we should consider the inflation rate right?
Do we set the inflation rate based on our assumption? Contribuion stetgy like they have cash at bank ,u
may propos them invest to any stock. Wht stock active in bursa market, 2020 jan top 20/10 in bursa.
How u review your new RP proposer.
Justify what risk or advantage if they maintaion this plan. Or what advatage you change new
plan. Any risk?or safety.
Make recommentdaiton what insurance policy they should have.
Conclusion include analysis how u achieve client objective based on your proposer.