2nd Customer Background

The second customer that we like to advise is Abd Rahim Bin Sani. He also has
married with his beloved wife for 24 years and his wife name is Mrs. Suraida Binti Mohd
Jani. He is 50 years old and his wife was 55 years old. Mr.Rahim also has been worked as a
teacher for 22 years and now he was work at Sekolah Kebangsaan Taman Nirwana,
Ampang and the position at his school is senior assistant for evening session. Mr. Rahim’s
wife is pensioners as teacher and her last school at Sekolah Kebangsaan Sungai Sekamat,
Kajang. The salary for Mr. Rahim is RM 7600 per month.

From this marriage, they got three children which is 1 son and 2 daughters. Their
childrens were still studies. Two of their children was studies at IPT one of their child still on
secondary school. Mr. Rahim has lived at Hulu Langat, Selangor. He was interested to
discuss with our group about his wealth planner and he also has discussed about his
financial objectives. The financial objectives are:

 Wants to retired on 60 years old

 Serve a lot of inheritance for his sons and daughters
 Achive financial freedom before retirement
 Involved in investment to generate wealth
 Trying to handle or mitigate the risk
 To perform Haj at Makkah with his wife

Financial Position

The financial position is to describe all person assets, liabilities and equities. From
the financial position, the people can know the financial status and they can know the
financial situation whether the asset excess the liability or vice versa. The important of
financial position to measure the financial health of an individual or company. A positive
financial position shows the person's assets are more than the liabilities. Other than that, if
the liabilities are more that asset, the individual or company will suffer the negative financial
position. It is used to tracking the individual wealth.
Monthly Expenses for Mr. Rahim

NO EXPENSES AMOUNT(RM)
1 Monthly Food Expenses 500
2 Monthly House Instalments 1250
3 Monthly House Instalments (Rent to Others) 700
4 Monthly Takaful or Insurance payment 400
5 Monthly Car or Motorcycle installments 800
6 Monthly Utilities (Phone Bill, electric, water bill and wifi) 600
7 Monthly Transportation Expenses (Petrol) 250
8 Monthly Contribution to Mother 500
9 Monthly Expenses for Children 450
10 Saving in Tabung Haji 500
11 Monthly Saving 300
TOTAL 6250

Currently, Mr. Rahim have RM 72,000 in his saving account for emergency purpose.
Mr Rahim had made this saving RM300 per month from past 20 years. The excess for every
month for his salary after deducting the monthly commitment is RM1,350. In Tabung Haji
account, Mr. Rahim had contributed RM500 for every month and now the amount is
RM30,000. The saving at Tabung Haji had been made by Mr Rahim since past 5 years. The
other asset is house. His family had stayed there for 10 years. The house price is
RM300,000 and the balance of installments still remaining 10 years. The monthly installment
is RM1,250. Then, he also has low cost flat that he bought past 5 years for investment
purpose. The price for that house is RM126,000 and the installment is RM700 per month for
15 years. The remaining installment years is 10 years. The rental that he charged to the
lessee is RM 900. So, the profit that he got from rental is RM200 per month. Besides that, Mr
Rahim was inherited a piece of land from his late father around 1 acres worth RM 150,000.
Mr Rahim planning to build the house there for investment purpose. But he wants to build it
after retired.

Then, Mr Rahim have two type of car which are Honda Accord and Perodua Kancil.
The price for Honda Accord is RM86,400 and Perodua Kancil is RM12,000. Perodua Kancil
installments had settled and the car is fully owned by Mr Rahim. But he still needs to pay the
installment amounting RM800 for Honda Accord. The Honda Accord had been bought by Mr
Rahim on 2015. It is still remaining 4 years for the installment. In general, car is the asset
that will be depreciate in term of market value. According to Mudah.my on 2020, current
market value for Perodua Kancil and Honda Accord are RM 4,000 and RM50,000.

Asset listed:

 Saving in Saving Account- RM72000 (RM300 X (20X12))

 Saving in Tabung Haji – RM30,000 (RM500 X (5X12))
 House – RM300,000
 House for Rental Purpose (RM126,000)
 Land (Rm150,000)
 Car – RM 54,000 (RM50,000+RM4000)

Then, the liability that he needs to settled is monthly payment for his first house. The
remaining time for installments is 10 years. The monthly installment is RM 1,250. So, the
liability for the house is RM150,000. Next, he needs to pay for the low-cost house
installment. The time remaining for installment is 10 years. The monthly installment is
RM700 per month. So, the liability for the house is RM84,000. Lastly, the liability for Honda
Accord car is RM38,400. The installment remaining year is 4 years. The monthly installment
for the car is RM800.

Liabilities Listed:

 First House – RM150,000 (RM1,250 X (10 Years X12))

 Low-Cost House (Rental Purpose) – RM84,000 (RM700 X (10 years X 12))
 Honda Accord Car - RM 38,400 (RM800 X (4 years X 12))

Mr Rahim spend almost RM6,250 for his spending monthly as stated at the table above.
The interesting part make us happy is Mr Rahim have awareness to buy the insurance or
takaful policy. He spent RM400 for takaful to protect himself and his family. Saving is one of
the important things to do, because in life we can’t predict how it’s going to be at the end of
our life.

This emergency case can be summaries with the losing a job, accident, medical
expenses and anything else that could be important for his life. For an example, one of his
family has been involved with an accident and need to go for the operation immediately. Mr.
Rahim don’t have to worried about the payment of the operations because the takaful policy
will pay all the cost of the operations. This Takaful policy will cover up with the amount
around of RM 60,000 from the plan that Mr. Rahim choose.
Retirement Planning

Retirement planning is important to all people. In general, people that retired will not
get the same income like they still working. So, they need planned wisely their retirement
planning. Islam also allowing us to make the retirement planning as long as they followed the
Shariah rules. From the Mr Rahim situation, he worked for Government sector. So, Mr
Rahim will not get EPF but he will enjoy pension from the government. Normally, the
government servant will get the pension amount based on their last income before they
retired. The last income will be divided with two. For example, if the salary for Mr Rahim is
RM7,600, the pension amount will be RM3,800.

Mr Rahim planned to retired on 60 years old. So, the remaining time is 10 years
because currently his age is 50 years old. So, he will enjoy the financial freedom when he
retired because all commitment such as house and car only remaining 10 years for
instalment. The pension amount can fully used as his main sources income when he retired.
He did not need to pay for the commitment after he retired.

After looking to the financial position for Mr Rahim, he already makes the saving
before this and the amount is RM 72,000. So, from the saving account amount RM72,000,
he can use RM40,000 to invest in Amanah Saham Nasional Berhad (ASB). ASB is the
investment that are fully secured by the government and the return are guaranteed by the
government. By doing this investment, we will get average 6.5% dividend yearly. Mr Rahim
also can make the monthly saving to the ASB to make their RM40,000 capital become
accumulated. Mr Rahim can use the dividend for the emergency purpose.

Other than that, if Mr Rahim do not want to invest in ASB, he also can use the saving
account money to build the new rental house at his land. House is the appreciate asset and
he will get monthly rental from the house. So, he will get another income after he retired on
60 years old. The other retirement planning that he can make is continuously make the
saving in Tabung Haji. The target for Mr Rahim to perform Haj after he retired. Currently, the
amount of saving in his Tabung Haji account is RM 30,000. Using this platform, he will get
the hibah and the hibah amount is not too high. Even the hibah amount is low, there are a lot
of benefits that he can get from the Tabung Haji account. One of the benefits is when the
saving had achieved the requirement of Tabung Haji, he can perform Haj using the saving
account. From this, the retirement target will achieve by the Mr Rahim which is to perform
Haj.

The other retirement planning that want to suggested to Mr Rahim is make the
investment through Islamic Fixed Deposit. Mr Rahim can used RM10,000 from the remaining
after he had contributed to ASB investment. It will diversify the money into many places in
unit trust to obtain the dividend annually. Mr Rahim will receive the bank’s fixed percentage
of the dividend on the basis of the investments. It could be 3 months, 6 months, 9 months or
12 months.

Then, he can use the remaining saving to buy or invest in stock at Bursa Malaysia.
Bursa Malaysia offering many types of stocks that we can buy in the large units. Mr Rahim
can use several methods to gain the high profit from the stock. First, he can hold and do not
sell it if he wanted to gain the profit from the unit price of the stock. Next, Mr Rahim can use
the method sell and buy method which is monitor the price of stock market. If the price per
unit is low, he can buy it and sell it after a week will the higher selling price. From this, the
profits will be earned by Mr Rahim by using this method. The dividend is based on the
company performance. From this, Mr Rahim can have his side income during the retirement
and it will improve the investment skill of Mr Rahim.

Lastly, he also can use the remaining amount of money for the education investment
for their children. The youngest son for Mr Rahim is still in secondary school. So, make the
investment for education is important to Mr Rahim. This is the long-term investments
method. Mr Rahim can use the money for his son to further the study by using the
investment money. Education of children is important and this investment is very useful to
people to avoid the problem when their children want to further their study.

Risk Management

From the interview that has been made by us with Mr. Rahim, there are some parts
of risk that must be taking an action to make it succeed over the wealth management. To
reduce the risk from the retirement, it must be based on the personal risk, property risk,
liquidity risk and investment risk. It also has to apply of the retirement planning that we
suggest to Mr Rahim for handle it.

For the first risk management that has been founded from Mr Rahim problem is
personal risk. Personal risk that can be a possible thing to get which is accident or critical
illness or medical disabilities that might be happen to Mr Rahim and his family. From the
Takaful insurance that Mr. Rahim has been purchase for him and his family was a one of the
ways to manage risk that might be happen to him and his family. The payment of Takaful
insurance was RM 400 per month.

For the property risk, the risk will arise when if there has any possibility could be
happen for the suffer of loss such as burglary and burning house. Based on the retirement
planning that we have discuss and provide to Mr. Rahim, he can make for the saving and
investment and also the order the money can be use if the risk happen in the future
outcomes. In the other hand, we also required Mr. Rahim to add the takaful coverage on the
General Takaful coverage in order for him to purchase the fire takaful.

Other than that, the liquidity risk that has been founded when it will cause from the
emergency and he want to use with the larger amount of money as soon as possible. To
reduce the liquidity risk of Mr. Rahim, he can liquidate the fixed deposits that we have
provided for his future retirement planning and Mr Rahim also can use the saving account
that he created before this. But, if has anything happen to Mr. Rahim and his family, he also
can use the money in the large amount of it.

Lastly, the investment risk was the last risk that must be focused on it because it will
happen when the investment could be the wrong way to manage it. From this situation also,
we have advice Mr. Rahim to make on any platform of investment that could bring profits in
the future. We also have advice to Mr. Rahim for invest in the medium risk and avoiding him
to invest in the higher risk platform. We also keep in touch with Mr. Rahim about the
investment and to make sure that his investment will be on the right track to gain any profit
and dividend that based on the retirement planning that we have provide to Mr. Rahim for
the future.

Faraid Calculation

The Faraid calculation for Mr Rahim if one day he dies, Mr Rahim’s wife will receive
1/8 portion while his mother will receive 1/6 portion. Then, Mr Rahim have 1 son and 2
daughters. His son will get ½. And his two daughters respectively will get ½ from his son
share. If he dies, he will not bear their children with the debt and their living will be protected.
The son will get more portion because there are only male heirs in his family.

According to the Islamic Jurisprudence, Faraid the share of property of a muslim

whether he left a will before death or not. Property distributed after the debt had been
deducting. The types of properties that can involve are:

 Building (Houses)
 Land
 Jewelleries (Gold and silver)
 Livestock

Total Assets = RM732,000

Total Liabilities = RM272,400

Zakat = 2.5%

Balance Faraid = TA – [(TA-TL) X Zakat]

= RM 732,000 – [(RM 732,000 – RM 272,400) X 2.5 %]

= RM720,510

Wife Portion = RM 720,510 X 1/8

= RM90, 063.75

Mother Portion = RM 720,510 X 1/6

= RM120,085

Son Portion = (RM 720,510 – RM 90,063.75 – RM 120,085) X ½

= RM 255,180.63

1st Daughter Portion = RM 255,180.63 X ½

= RM 127,590.32

2nd Daughter Portion = RM 255,180.63 X ½

= RM 127,590.32
Zakat for Income (per year) calculation:

Zakat Pendapatan RM RM
Selangor
Annual Gross Salary 91,200
Al-Mustaghallat Income 900
Total Income 92,100
Family Leader 12,936
Dependent IPT 14,208
Dependent Age 7-17 4,008
Kifayah Limit (31,152)
Total Balance 60,948
Zakat 2.5%
Zakat (Annual) 1,523.70

Zakat Wang Simpanan calculation:

Zakat Wang Simpanan RM RM

Saving Account 72,000
Tabung Haji 30,000
Total Saving 102,000
Double Adjustment for Zakat (91,200)
Total Balance 10,800
Zakat 2.5%
Zakat (Annual) 270

QUESTIONNAIRE (WEALTH PLANNING)  1 son/s

 2 daughter/s
1. Age
 other/
 25 – 40 years old
 41-50 years old
3. Occupation
 51 – 60 years old
 TEACHER
 61 years old and above
4. Monthly salary range
2. Dependents
 RM2,000 and below
 5 person/s
 RM2,001 – RM4,000
 1 partner
 RM4,001-RM6000
 RM6,001-RM8,000
 RM8,001 and above 8. Monthly Takaful/insurance
payment
5. Monthly food expenses  RM250 and below
 RM400 and below  RM251-RM400
 RM401-RM600  RM401 – RM550
 RM601 – RM850  RM551 – RM750
 RM851 – RM1,100  RM751 and above
 RM1,101 and above  Nil

6. Monthly house payment 9. Monthly Car/motorcycle payment

 RM700 and below
 RM701 – RM900
 RM901 – RM1,200
 RM1,201 – RM1,500
 RM1,501 and above
 Nil
 RM500 and below
 RM501 – RM800
 RM801 – RM1,100
 RM1,101 – RM1,400
 RM1,500 and above
10. Monthly utilities payment
 RM500 and below
 RM501-RM700
 RM701 – RM900
 RM901 – RM1,100
 RM1,101 and above

11. Zakat (yearly)

7. Monthly Saving (% from income)  RM600 and below
 10% and below  RM601 – RM900
 11% - 25%  RM901 – RM1,2000
 26% - 35%  RM1,201 – RM1,500
 36%-45%  RM1,500 and above
 46% and above
 Nil

12. Monthly retirement payment  RM300 and below

 RM300 and below  RM301 – RM450
 RM301 – RM450  RM451 – RM600
 RM451 – RM600  RM601 – RM700
 RM601 – RM700  RM701 and above
 RM701 and above
 NIL

13. Monthly Transportation (Petrol)