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Bwrr3113 Retirement Planning ASSIGNMENT 2: Investment For Retirement Planning

The document provides guidance for a retirement planning assignment. As a financial planner, the student must analyze a client's existing retirement assets to determine if they are appropriate given the client's needs, objectives, and retirement goals. The analysis should calculate the total lump sum needed at retirement, value current financial resources, identify any retirement surplus or gap, ensure the risk level of assets matches the client's risk profile, and determine how assets will be liquidated. Notes provide details on calculating retirement income and constructing a portfolio using various investment vehicles.

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256 views2 pages

Bwrr3113 Retirement Planning ASSIGNMENT 2: Investment For Retirement Planning

The document provides guidance for a retirement planning assignment. As a financial planner, the student must analyze a client's existing retirement assets to determine if they are appropriate given the client's needs, objectives, and retirement goals. The analysis should calculate the total lump sum needed at retirement, value current financial resources, identify any retirement surplus or gap, ensure the risk level of assets matches the client's risk profile, and determine how assets will be liquidated. Notes provide details on calculating retirement income and constructing a portfolio using various investment vehicles.

Uploaded by

fitri
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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BWRR3113 RETIREMENT PLANNING

ASSIGNMENT 2: Investment for Retirement Planning

As a financial planner you are required to give an advice and suggestion to your client on the
appropriateness of the existing retirement assets. The appropriateness of the assets will
usually depends on how well it serves the need and objective of the client. Based on the
given data, extracted from the client’s fact finding sheet, you will review their portfolio based
on the risk, return and whether the existing portfolio enables the client to meet their
retirement goal.

Among the issue that should be included in your analysis are:

A. The total lump sum needed for retirement under capital liquidation method.
B. The value of the financial resources available for retirement.
C. The retirement gap or surplus retirement fund.
D. Whether the risk of the retirement assets matches the risk profile of your client.
E. How are the assets going to be liquidated?

Note:

1. Rate of return during retirement is 7%.


2. Inflation rate is 4.5%
3. Salary growth rate is 5%
4. The first year retirement income (calculated in today’s dollar) is 70% of the salary.
5. The rate of return for the existing investment asset will refer to your chosen
investment vehicles. For example:
a. EPF: Get the average rate of return for EPF in their website.
b. Unit trust & General investment account (GIA):
You are required to choose at least 3 funds for unit trust and at least 2 for
the GIA available from the market to construct the client’s portfolio taking
into account the diversification and correlation elements.

Each group will choose only 1 client. No duplication please.


Your assignment submission must show all the calculations including the table for capital
liquidation, EPF projection, portfolio construction and asset reallocation.
You are also required to present you suggestion at the end of the semester.
GOOD LUCK!!!

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