SUNWAY UNIVERSITY BUSINESS SCHOOL

BACHELOR OF SCIENCE (HONS) FINANCIAL ECONOMICS

BACHELOR OF SCIENCE (HONS) FINANCIAL ANALYSIS
BACHELOR OF SCIENCE (HONS) ACCOUNTING AND FINANCE

ACADEMIC SESSION: APRIL 2023

FIN3154 PERSONAL FINANCIAL PLANNING /FIN3084 FINANCIAL PLANNING

ASSIGNMENT : GROUP ASSIGNMENT

ASSIGNMENT DUE DATE : Monday, 26 June 2023 at 9.00 a.m.

INSTRUCTIONS TO CANDIDATES
1. There are EIGHT (8) PAGES in this Assignment including the cover page.
2. The word count for the report should be 3,500 words.
3. This assignment will be marked out of 100. This assignment will contribute 30% to your
final grade. The marking rubric is attached together with this assignment.
4. This is a GROUP assignment. There should be no more than 5 pax per group.
5. The assignment must be typewritten on double line spacing; A-4 size paper and single
sided. Work should be presented in a folder, with a cover sheet, which includes your
name, unit number, tutor's name, and the essay/group report topic. Marks will be allocated
for content, presentation, and referencing.
6. A hardcopy is to be submitted with the Turnitin Similarity Index Report
7. A softcopy is to be submitted into Turnitin via Elearn.

IMPORTANT
Extensions and Late Submissions
The University requires students to adhere to submission deadlines for any form of assessment.
Penalties applied in relation to unauthorized late submission of work are as follows:
a) Coursework submitted within one week after the deadline will be accepted for a
maximum mark of 40%.
b) Any coursework handed in after seven days, without an agreed extension, will be regarded
as non-submission and awarded zero.
c) Submission of resit coursework must adhere strictly to the deadline.
No extension will be given and late submissions will be awarded
zero.
Subject lecturers are authorized to grant extensions for coursework within their own subjects and
agreements will be documented.
Case Study : Devan (36) and Sarita (34)
Deven (38 years) and Sarita (35 years old) years have been married for the past 10 years. They
have two children, Raju (8 years) and Shanti (5 years). They pay their stay in Indonesian maid,
Kak Rina, to take care of their children. The maid costs them RM18,000 per annum.
Sarita is the Regional Sales Manager for a multinational pharmaceutical company. She is
required to travel around the country and ASEAN countries as part of her job. She reports to the
Vice President of Sales, located in the United States. She is provided with a company car that
was newly purchased at RM180,000, three years ago. The current market value of the car is
RM120,000. In the year 2021, she travelled a total of 50,500 KM of which 40,800 KM was for
business purposes. The fuel consumption of the car is 7.7 KM per litre. The car uses RON97
petrol, and the average cost is RM2.50 in the year 2021. The company also pays for all her toll
and parking fees for business purposes which in 2021 amounted to RM3,600 for the year.
Sarita’s company also provides her with a company mobile phone and the bill is RM200 per
month.
Devan purchased a Toyota Camry in June 2019 at an original purchase price of RM188,763 via
a seven-year hire purchase loan. The interest rate at that time was 4%. The instalment period
started one month later. Devan is the General Manager of a Plantation Group. The company
does not provide him with a car but they provide him with a fixed travelling allowance of RM500
per month. They also provide him with a fixed maid allowance of RM500 per month. Devan
spends about RM550 per month on petrol and RM500 for toll and parking. The road tax and
insurance for the car amount to RM2,000 per annum.
Devan and Sarita live in a semi-detached terrace house located in Subang Jaya. Devan
purchased the house in January 2015 for RM580,000. The first instalment for the loan started in
February 2013. The tenure of the loan is for 30 years. The mortgage interest loan rate was 5%
with a margin of financing of 85%. The house has a freehold title and has a tenancy in common
ownership agreement. The current market price for the house is about RM745,000. The yearly
assessment and quit rent for this house is RM380 and RM53 respectively. The bank required
that he purchase a Mortgage Reducing Term Assurance which was fully paid at the time of the
house purchase.
Sarita purchased an apartment in Klang under her name in July 2010 at a price of RM250,000.
The margin of financing was 90% and the interest rate was 4.5% per annum. The first
instalment started a month later. The loan tenure is 25 years. The current market value of this
apartment is RM320,000. The monthly rental that she received for this apartment in 2021 is
RM1,200. The monthly maintenance fee is RM150, and the yearly quit rent and assessments
are RM250 and RM53 respectively. For her tax computation, Sarita does not include the
interest on her mortgage loan.
Raju and Shanti both attend a private school in Subang Jaya. Raju’s school fees are RM10,000
per semester and Shanti’s school fees are RM9,500 per semester. There are two schooling
semesters per year. Other children’s expenses including extra tuition classes and extracurricular
activities amount to about RM1,500 per month.
The other regular average monthly and yearly expenses include:

Page 2 of
 RM/month RM/year Remark
Food 1,600
Dining Out 1,000 Discretionary
Electricity 500
Water 80
Internet 211 With Telekom Malaysia. Paid by
Devan.
Household items 400
Sarita’s personal 850 Make-up, clothing, manicure, pedicure
expenses etc
Devan’s personal 700 Clubbing, clothing, golf etc.
expenses
Books and magazines 1,300 Devan (RM500) and Sarita (RM800)
Clothing for children 1,000 Children’s uniform and social
Allowance to Sarita’s 500 Paid by Sarita. Love-gift.
parents
Allowance to Devan’s 700 Paid by Devan. Love-gift.
parents
Medical check-up 1,500 Equally by Devan and Sarita at
Sunway Medical
Miscellaneous 500
Donation 1,000 Paid by Sarita to an orphanage that is
approved by Lembaga Hasil Dalam
Negeri.
Vacation 15,000

In addition, Devan started attending a 2- year Master of Business Administration Course offered
by a private institution of higher learning in 2021. The total course fee is RM55,000. The amount
that was due and paid in 2021 was RM20,000.
Devan and Sarita are busy people and not particularly well-versed in investing. As such, both
have chosen to invest in unit trusts. Devan has investments in Bond funds amounting to
RM50,000 and Sarita has some Dividend funds amounting to RM40,000. Besides this, they
maintain joint current and fixed deposit accounts with the amounts of RM15,000 and RM35,000
respectively. The EPF account balances for Devan and Sarita are RM145,000 and RM125,000
respectively. Devan and Sarita have credit card outstanding balances of RM16,000 and
RM8,000 respectively.
They intend to send Raju and Shanti to study in the United Kingdom (or equivalent) after they
finish their pre-university studies in Malaysia. They intend to make the tuition fee and living
expenses funds (1 year pre-university and 3-year degree) available when Raju and Shanti reach
the age of 18. They would like you to design a portfolio of unit trust investments to finance their
children’s education. They would also like to know how much they would have to save from
2022.
Devan’s basic salary is RM17,000 per month while Sarita’s basic salary is RM12,500. Besides
tax deductions, their salaries are subject to Employee Provident Fund (EPF)and PERKESO
contribution. All fixed allowances are subject to EPF. On average, Devan and Sarita’s
employers pay them 2 months and 1.8 months bonus respectively.

Page 3 of
 Devan’s company provides him with Group Personal Accident and Medical Insurance. If Devan
passes away in an accident the company will pay RM350,000 to the next of kin. Similarly,
Sarita’s company also has a Group Personal Accident Policy of RM300,000 for her. In terms of
medical insurance, Devan’s company provides outpatient medical coverage for him, spouse and
children of RM3,500 per year (subject to certain terms and conditions). Sarita’s company also
provides outpatient medical coverage of RM2,500 per annum for her and family (subject to
certain terms and conditions). Besides this the couple does not have any other insurance. The
group insurance premiums paid by Devan’s and Sarita’s companies are RM400 and RM350
respectively.
Devan and Sarita would like to set aside RM2 million for their retirement (not including their EPF
and assets). They would like you to design a portfolio of unit trust investments that is suitable for
their risk profile for their retirement.
Devan and Sarita do not always see eye to eye on their household expenses. They have quite
different personalities when it comes to spending money for themselves and what investments
to make. However, one thing they do not hold back on is giving their children the best of what
life has to offer. At the moment, their savings and current accounts are joint accounts. They do
not have a regular investment plan and they make investments on a piecemeal basis.
You and your group mates are licensed financial planners. Devan and Sarita consulted you in
Jan 2022 for some financial planning advice.
Required:
(a) Tax planning (15 Marks)
 Prepare a tax computation for Devan and Sarita respectively in one page. For the
purpose of tax, Devan claims the child relief for Raju and Sarita claims for Shanti.
 Comment on three(3) different concepts of tax that they can utilize to reduce
their personal taxes legally.
 Provide some relevant and meaningful examples to support each of your points.

(b) Cash flow, Net worth and debt management (40 Marks)
 Cash flow management
 Show the breakdown of net take-home pay, fixed and variable expenses
clearly.
 Recommend three ways that they can improve on their cash flow
management as a household. Provide some relevant and meaningful
examples to support each of your points.
 Are they saving enough for emergencies? Show your calculation clearly.
 Prepare a net worth statement for Devan and Sarita as a household.
 Debt Management
 What would be their monthly net debt to income ratio for Devan and Sarita
respectively. (Note: To be conservative exclude the estimated bonus).
 Overall, are they managing their debt well as individuals and as a
household?
 How should they settle their current credit card outstanding? Provide two
points to justify your answers.

Page 4 of
(c) Investment planning (35 Marks)
Investment planning for children’s education.
 When would it be practical for them to start their investment plan. State the month
and year clearly.
 Provide an assessment of Raju and Sarita’s risk profile as a household. Critically
analyse three (3) factors that Raju and Sarita should consider before they embark
on an investment plan. Provide clear explanations to support your answer.
 Propose a portfolio of at least three (3) unit trusts for their children’s education
investment plan. Show the calculation of the weighted average return of the
investment clearly.
 Do your research on the education costs and state your assumptions necessary for
the calculations clearly.
 What would be the difference between using an investment planning portfolio
(such as the one you designed above) as compared with buying an education
insurance policy? Provide three (3) reasons to support your answer.
 Recommend two other alternatives that can be considered to fund the children’s
education besides what was discussed above.

Investment planning for retirement

 Propose a portfolio of at least three (3) unit trusts for their retirement plan.
Show the calculation of the weighted average return of the investment clearly.
 Based on the above, would they be able to achieve their goal of RM2 million for
retirement (excluding EPF, other assets and Group Insurance)
 Does it make sense for Raju and Sarita to discontinue their retirement planning in
favour of their children’s education?

(d) Presentation (10 Marks)

Ensure that your report is:
(i) Are typed using Arial Narrow 2 point or Times New Roman 12 point type font
(ii) Professionally presented with proper meaningful headings (Note: Not a good
practice to repeat the questions as headings). Consider this as a report to your
client.
(iii) Include relevant appendices attached and properly labeled
(iv) Adheres to the APA Referencing System

Page 5 of
 FIN3154 Personal Financial Planning/FIN3084 Financial Planning
Weight Weak
0 to 1.4 marks
Tax Planning 3  Unclear/incorrect tax
computations
 Superficial suggestions
on relevant ways to
reduce tax payable.
 Provide at least 1 point of
analysis on reducing tax
payable.
Cash flow and 8  Do not understand the
debt concept of net worth and
Management net debt to income ratio
well
 Superficial calculations
 Budget classifications not
clear
 Provide at least 1 point of
analysis on spending
trend .
 Not much discussion
 Practically no links
between calculations and
case discussion
Group Assignment Marking Rubrics
Marginal Satisfactory Good Very Good Total
1.5 to 2.4 marks 2.5 to 3.4 marks 3.5 to 4.4 marks 4.5 to 5 marks Marks
 Some aspects of tax  Generally clear and  Clear and correct of  Clear and correct of 15
computations not correct of tax tax computations. tax computations.
clear/correct computations.  Provide 2 points on  Suggestions on
 Unclear suggestions  Suggestions on benefit in kind (BIK) relevant ways to
on relevant ways to relevant ways to negotiation. reduce tax payable
reduce tax payable. reduce tax payable  BIK calculations clear well linked to
 Provide at least 1 to 2 generally linked to  Suggestions on calculations.
points of analysis on calculations. relevant ways to  Provide 3 points of
reducing tax payable .  Some discussions reduce tax payable analysis on
not substantiated well linked to calculations. reducing tax
 Provide at least 2  Provide 2 to 3 points of payable.
points of analysis on analysis on reducing  Discussions
reducing tax payable. tax payable. succinct and well
 Rather length .  Discussions generally substantiated with
substantiated with additional research
additional research
 Show some  Show understanding  Generally good  Good 40
understanding on the on the concept of net understanding on the understanding on
concept of net worth worth and net debt to concept of net worth the concept of net
and net debt to income income ratio. and net debt to income worth and net debt
ratio.  Calculations ratio to income ratio
 Calculations not generally clear  Calculations generally  Calculations clearly
shown clearly.  Provide at least 2 clearly shown and shown and correct
 Budget classifications points of analysis on correct  Provide 3 points of
not completely spending trend .  Provide 2 to 3 points of analysis on
justified.  Classifications analysis on spending spending trend
 Provide 1 to 2 point of satisfactory although trend  Discussions are
analysis on spending some assumptions  Discussions are succinct and linked
trend but too general. unclear generally clear and to calculations and
 Discussions on issues  Discussions are linked to calculations practice.
are rather general. satisfactory . and practice.  Evidence of
 Links between  Some links to  Evidence of additional additional research
calculation and case is calculations or research from credible
unclear/unsatisfactory practice however, nor sources
comprehensive
enough
Page 6 of
 FIN3154 Personal Financial Planning/FIN3084 Financial Planning
Group Assignment Marking Rubrics

Weight Weak Marginal Satisfactory Good Very Good Total

0 to 1.4 marks 1.5 to 2.4 marks 2.5 to 3.4 marks 3.5 to 4.4 marks 4.5 to 5 marks Marks

Investment and 7  Calculations not  Calculations not  Calculations are  Calculations are clear.  Calculations are 35
Education complete/clear. complete/clear. satisfactorily clear.  Good risk profiling clear.
Planning  Rather superficial risk  Rather general risk  Risk profiling practices exhibited  Succinct risk
profiling. profiling satisfactorily  Discussion on profiling with proper
 Rather superficial  “Textbook” strategies- conducted. strategies. research.
strategies. may not be properly  Satisfactory accompanied by  Succinct discussion
 Able to provide at least 1 applied to the case. discussion on evidence of additional of strategies with
relevant investment  Able to provide 1 to 2 strategies and relevant research. relevant research
product relevant products.  Able to provide at  Able to provide 2 to 3  Provide 3 relevant
 Superficial calculation of  Research limited and least 2 relevant relevant products. products.
weighted average. return not well linked to case products.  Justifications and  Justifications and
on investments.  Justifications and  Evidence of research discussions regarding discussions clear
 Justifications and discussions of satisfactory although alternative education and succinct
discussions on alternative alternative education some unclear plans and problems  Good evidence of
education plans are rather plans are rather reasoning.  Some good evidence additional research
general and superficial. general and  Justifications and of additional and succinct links
 Justifications and “textbook”. discussions research and support to the case.
discussions on problems  Justifications and satisfactory but rather  Minimum duplications.
rather general and discussions of lengthy.
superficial. problems are rather  Some duplications in
general – very little discussions.
research and  Satisfactory
“Textbook view”. discussion of
alternative education
plans with some
research.
 Satisfactory
discussion of
problems with some
practical research
and reflection.
 Some unnecessary
repetitions

Page 7 of
 FIN3154 Personal Financial Planning/FIN3084 Financial Planning
Group Assignment Marking Rubrics

Weight Weak Marginal Satisfactory Good Very Good Total

0 to 1.4 marks 1.5 to 2.4 marks 2.5 to 3.4 marks 3.5 to 4.4 marks 4.5 to 5 marks Marks

Presentation of 2  Lack of proper headings
report and subheadings
 Lack of proper formatting
 Report is not professional.
 Appendices not properly
labelled/cited in text.
 Did not use APA
Referencing System.
Total Marks
(100%)
 Some headings and  Headings satisfactory  Headings are clear.  Well-described 10
sub-headings not  Formatting issues in  Generally good headings.
meaningful some parts formatting.  Good formatting
 Formatting issues in  Appendices generally  Appendices properly  Appendices well
some part properly labelled/cited in text. labeled/cited in
 Report is not labelled/cited in text.  Use APA Referencing text.
professional.  Use APA System satisfactory.  Use APA
 Appendices not Referencing System Referencing
properly labelled/cited satisfactory System well
in text.  Professional
 Did not use APA reporting.
Referencing System
well
100

Convert to 30% 30

Page 8 of