Financial Position

The financial position will be referring on the Personal Financial Statements describe all person
or couple's assets and liabilities. The calculation to calculate the financial position which is the Subtract
asset obligations to see the net value. A positive net worth shows the person's assets are greater than
the liabilities. On the other hand, which is If the liabilities on the personal financial statement are greater
than the assets, then the entity has a negative net worth. If the person has even more assets than the
liabilities, the net worth is positive. Based on this financial position referring to Personal financial
statements are useful in tracking wealth and objectives.

Next, referring to the case study of the 2 nd Customer which is Mr. Hasni Bin Hassan which have
the have the money in the saving account which have RM 180, 000 because Mr. Hasni make the saving
RM 1,000 per month since he started get their permanent work when 25 years old. The other asset of
Mr. Hasni which is have the rental house income which is Mr. Hasni will get RM 1,000 since he 35 years
old he gets the home rental income. Based on the rental income of the house Mr. Hasni gain he will use
the money to pay the house monthly payment of the rental houses provide to the lessee.

In the other hand, Mr. Hasni was inherited the piece of the land to him from his family and the
pieces of land that he gets been measured around 10 acres been inherited to him. The pieces of the land
that he gets, he will make some planning to build the house at the future but it will decide to build the
house before he retired from his job.

Furthermore, Mr Hasni have two type of car which is Perodua Myvi and Proton Exora which the
amount of the car for Perodua Myvi is RM 50,000 while the Proton Exora will be RM 78, 000. The car will
be payed by Mr. Hasni based on the monthly payment. In addition, Mr Hasni also have another asset
which is the house that Mr Hasni Have which is the house that he and his family stayed and the house
for the rental option. The price of the house that he stayed which is RM 400,000 of the cost price while
the house that he buys for the rental option which is RM 250, 000 which is lower than the price of he
uses to stay with his family.
 The second important part to calculated the net worth which is about the liabilities will which is
Mr Hasni pay the utilities expenses which is RM 300 monthly. The amount of the utility’s expenses will
be pay based on the current house he and his family are stayed. Mr Hasni also have another expense for
his family and individual cost of expenses for the monthly uses which is included his children education,
basic needs and others will accumulate the expenses RM 2,000 for monthly. The amount of the
expenses will be around of that amount because Mr. Hasni control their expenses in every month for
this type of the expenses.

Besides that, the other liabilities which is he need to pay the monthly payment of the current
house that he stayed with his family which is will be RM 1500 for monthly payment of the house.
Besides that, he also has been required to pay the monthly installment of their car which is for the
Perodua Myvi he need to pay RM 400 monthly and the second car which is Proton Exora he will be
required to pay RM 500 for monthly installment of the car. The payment of the monthly car will be
referring on the tenure of the repayment. Next Mr Hasni also have another liability he needs to pay
which is the takaful coverage for his family which is he take the family takaful plan and it will be pay RM
500 per month by Mr. Hasni because the takaful coverage will conclude all the family member into the
family takaful plan.

Asset listed:

 saving account which have RM 180, 000, make the saving RM 1,000 per month
 home rental income gets RM 1,000
 inherited the piece of the land measured around 10 acres
 car for Perodua Myvi is RM 50,000 while the Proton Exora will be RM 78, 000
 The price of the house that he stayed which is RM 400,000 and house that he buys for
the rental option which is RM 250, 000
Liabilities listed

 Utilities expenses RM 300

 Another expenses (family and individual) RM 2000
 House RM 1500
 Myvi RM 400
 Exora RM 500
 Takaful RM 500
Retirement Planning

The overview on the retirement planning which are the Retirement planning is the process of
deciding the priorities of retirement income and the actions and decisions that are required to achieve
those objectives. In the other hand it can be seen as the retirement planning involves defining revenue
sources, forecasting costs, implementing a savings program and controlling assets and risks. Referring to
the Islamic perspective which In Islam successful technique on the wealth management is therefore
persuaded in retirement planning, but Shariah requirements must be met.

In this case study about Mr. Hasni which is based on his work that he works as non-government
organization. Mr. Hasni are planning to retired at age of 55 years old and he wanted to archived the goal
at the retirement Based in this he already makes their own retirement planning on the future because if
he works as non-government organization, his salary will be deducted for the Employees Provident Fund
(EPF) every month. The amount that will deducted from his salaries which is 11% from the salaries per
month. So, the amount of the 11% will be RM 770 per month will be deducted and will put on the EPF
for retirement and investment purpose. In the EPF they will invest the money to gain the profits and
furthermore the investor will gain the dividend annually and will be credited to the EPF account. For
example, if the dividend 5% annually until Mr. Hasni retirement so he will get the total EPF amount at
the retirement age which is RM 291,060 at 55 years old of retirement.

After looking at the financial position of Mr Hasni , he already make the saving before this and
he already have RM 180,000 cash in his saving account. So, based on the saving money, Mr Hasni can
use RM 40,000 to be invest in the Amanah Saham Nasional Berhad for his retirement planning at age 55
years old after. By doing this investment he will gain the dividend every year usually will get around 6.5%
annually. For example if Mr Hasni just put RM 40,000 at his age 40 years old , until the retirement he will
get the RM 79,00 based on the average percentage of the dividend before last years. Mr. Hasni also
saving the money monthly on the Amanah Saham Nasional Berhad and it will increase the amount of
dividend will be accumulated until his retirement and can reach more than hundred thousand if he
added the amount of the investment every month.
 Besides that, the remaining amount of the money which is RM 140, 000 he can use for the
investment on the children education planning which is he can make the investment for his child
education for 3 of his sons. Its actually need to make the saving for his sons and the money will be invest
to get the profit and will be diversified to the investor account annually. The investment of the
education planning may know as the long-term investment method. At the end of the date, he can use
the money for his children to continue their study by using the money that he already makes the
investment based on the monthly investment/saving based on the specific investment that he will
invest.

Next, is retirement planning for Mr Hasni which is use the money to but the stock at stock
market at Bursa Malaysia which is providing many stocks from many types of the company can be buy
with large of unit. How to invest in the stock market which is Mr, Hasni must use hold method if he
wanted to gain the profit from the unit price of the stock per unit. If Mr. Hasni already have the
expertise to invest in stock market he can use the expertise on the sell and buy method which is
monitor the price of the stock market if the price per unit is lower so he can buy it and will sell it within a
week if the price raise up to gain the profits. In addition, if Mr Hasni choose to hold the stock, he will
gain the dividend and the dividend will be based on the company performance. By using this method
Mr. Hasni can enjoy the dividend annually from the company that he buys the stock.

The other retirement planning which is make the saving and investment at Tabung Haji Malaysia
based on the remaining balanced in the saving account. At least he will be saving RM 40,000 at Tabung
Hajji in the Tabung Hajj account. In this platform, he will get the hibah from Tabung Hajj annually and
the percent of the hibah will based on Tabung Hajj and it usually not quite higher than the other
investment platform but in this Tabung Hajj will providing many benefits will be provided. The benefit is
Tabung Hajj will automatically pay the zakat based on the amount at the account so it will make it easier
Mr Hasni no need to worried about the zakat.

The last retirement planning will be suggested to Mr Hasni which are make the investment
through the Islamic Fixed Deposit platform. Mr Hasni can use the remaining balanced of RM 100,000 to
be invested RM 20,000 to be invest in fixed deposit. In the unit trust it will diversify the money to many
platforms to gain the dividend and it will be distributed annually based on the performance. Based on
this platform Mr Hasni will gain the fixed percentage of the dividend will be given by the bank based on
short term investment required by Mr Hasni which is can be 3-month, 6 month or 12 months. The
specific percentage of the dividend based on the specific invested month.
 Risk Management

The risk management has been implement based on the wealth management provided to Mr
Hasni on the planning provided by us. Based on the wealth management it gets easily mitigate the risk
will happen on the Mr Hasni which is cannot reduced the standard living at his retirement. The risk
management will be making based on the personal risk, liquidity risk, property risk and investment risk
can be mitigated by implement of the retirement planning to handle the risk happen to Mr Hasni.

The risk management based on the personal risk which is the possibility happen based on the
critical illness and any medical disability or accident that may happen Mr. Hasni and his family. The risk
management of the risk which is Mr Hasni already purchase the takaful coverage for his family for
medical purposing. The takaful coverage will cover on the personal risk happen through Mr Hasni and
his family with the family takaful plan that he needs to pay RM 500 monthly.

Besides that, is about the liquidity risk raise happen when Mr Hasni need the money
immediately in the large amount of the money needed for any emergency. To mitigate this liquidity risk
Mr Hasni can liquidate the fixed deposit that we already make for his retirement planning and he also
may use to use the saving account that he makes before this if Mr Hasni needed the large amount for
any emergency cases possibility happen.

Furthermore, about the property risk which the risk happens based on the loss due to theft and
fire happen through the circumstance happen in his family. This risk may be management based on the
retirement planning that we already make the saving and investment in order the money can be use if
the risk happen in the future outcomes. In the other hand, we also required Mr Hasni to added the the
takful coverage on the General Takaful coverage in order fo Mr Hasni to purchase the fire takaful for
example for his mortgage in order the plan which is cover at 75% of the house cost price if the fire
happen.

The last but not least which is the investment risk happen which is including the risk happen on
the unproper fund or investment management. Based on this, we already make the management on the
Mr Hasni wealth to be diversified to make investment on many platforms based on the retirement
planning that already advise to Mr Hasni. Besides that, we also advise Mr Hasni to invest in the medium
risk of the investment and avoiding Mr HAsni to invest in the higher risk platform. Next, we also mitigate
this risk by ensure that all the investment will be updated through Mr Hasni to make sure he investment
will be on the right track to gain any profit and dividend based on retirement planning that we already
set to Mr Hasni for the future.