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1. 2(c)(i) Demonstrate how close Feng Hao will come to his goal of a capital sum of $2,354,000.

2. 2(c)(ii) Calculate the amount of retirement income Feng Hao can expect to receive when he retires at age 65?

CASE STUDY TUTOR-MARKED ASSIGNMENT 02 This tutor-marked assignment is worth 40% of the final mark for COR 167e Managing Yote Personal Finances Introduction Feng Hao 35 and Dong Mei 32 have been married for 6 years. They have three children Dong Mei's mother is the only parent that he has, and she resides with Feng Ho and Dong Mei The cut-off date for this assignment is 2355hrs en 12 October 2021 PROPERTY Additional instructions: Submit your solution document in the form of a single MS Word file on or before the cut-off date shown above. DATE OF PURCHASE MARKET LOAN RENTAL PURCHASE PRICE VALUE AMOUNT AMOUNT June 2016 $850,000 $1,200,000 Nil 84.200 650 Sq Ft I Bum Condo in Bt Timah You are to include the following particulars in your submission: Course Code. Title of the TMA, SUSS PI No, Your Name, and Submission Date. Feng Hao and Dong Mei rented out their investment properties. The rental amount collected for 2021 is the same as that in 2020. All the properties are registered under Feng Hoo'stume as a single owner The websites will help facilitate your murch. However, you will be penalized if you simply cut & paste information from these websites in your assignment Scope TMAO2 test your ability to WEALTH PROTECTION - INSURANCE PLANNING The house that Feng Hao and Dong Mel now live in was purchased 5 years ago and is held in joint names. The purchase price w $1,200,000, and the couple paid $400,000 with cash and CPF, and took up a loan for the balance. When the house was first purchased, Feng Hao bought a mortgage-reducing term insurance on a joint-lifu basis to cover the initial loan value of 5800,000 at a discount rate of 1.5% pa (a feature of the policy is that it pays the outstanding a . balance of the loan at the death of the insured). The premium for the mortgage protection plan is $3.515pa Describe the use of concept of time value of money to daily transactions - Tilastrate the critical aspects of Wealth Guarding through Tax and Insurance Planning . Demonstrate Wealth Growing Process through Investment Planning and Retirement Planning - Use the key aspects of Wealth Geving through Estate Planning A doctor discovered that his wife, Doeg Mei, has some lamps in her breasts. Feng Hao decides to quickly buy a $600,000 Term plan with $500,000 Critical Illness benefit to cover Dong Mei if she contracts and/or dies from cancer. Her term plan covers her until age 99 and costs $7,305 each year. For fear of being uninsurable, Feng Hao did not reveal in the medical questionnaire in the insurance application forms that Dang Mei had discovered some lumps in her breasts and was awaiting a medical examination. The policy was approved by the insurer. About 3 years ago, Dong Mei bought a $70,000 5-year limited-premium whok life plan. The plan covers her for accelerated Critical Illness with a benefit of $50,000. The annual premium fur her plan was $7,500p.a. The Cash Value of her plan is 42.979. Dong Mei also purchased a $10,000 whole life participating policy 5 years ago. SINGLU ORE UNIVERSTY O SOCIAL SCIENCES SUSSI 210 SINGAPORE UNIVERSITY OF SOCIAL SCIENCES (SUSSI Faolo 10 COR16 Tutor Harked asigment 2 COR16 Tubar-Marion Adet 2 Retirement Planning Expense Method Non-Forfeiture Values Extended Termine Cash Value Paid-Up Insurance Years Days Regulred Retirement Amount Adjusted Rate of Return - 3% 3% End of Policy Year 1 2 3 Future Value of Ats 35 Current Age 45 Retirement 95 Expectancy 1* Year Retirement Income Q2 Shortfall 9201) 5 6 S 0 $ 10.55 $48.00 3 $ 21.82 $97.00 6 S S 31.52 S 138.00 $ 8 S4496 $ 170.00 10 $ S5709 $ $ 221 on 11 $ 71.18 $ 264.00 13 $ 8598 $ 299.00 15 $ 100.46 $ 340,00 18 $ 116.72 S 375.00 19 $ $ 200.93 $ 522.00 21 S $ 301.33 $ 664,00 22 $ 0 0 154 102 199 244 346 298 222 11 282 95 29 WEALTH GIVING-ESTATE PLANNING 7 8 9 Dong Mei had nominated her mother as nominee for her CPF monies before her marriage Dong Mei does not have a will. 10 15 20 Type Sam Assured Cash Value Feng Hoo is planning to have his will revised. Feng Han's existing will contains the following provisions "I hereby disinherit my brother Zhen Hao. He will not receive any bequests, devises, or inheritances from my estate." Premium Per Annum S1,970 Nominated Beneficiary Dung Mei Whole life (Feng Hao) $250,000 $12,600 "I hope that my coin collection will be given to my nephew WEALTH ACCUMULATION - RETIREMENT PLANNING Feng Has's Savings Account, Fixed Deposit and SRS Account eamed interest of $300, $3,375 and $1,850 respectively in 2021 "I hereby give my Toyota/SKG 2367) to my niece, Yen Yen" . "I hereby give Chao Chao $100.000 Since the will was executed, the Toyota was destroyed in an accident and Deng Meileamed about Chao Chao Chao Chao had threatened to expose some past indiscretions by Feng Hoo if he was not provided for in his will Feng Hao and Dong Mei have an active CPF Ordinary and Special Account Feng Hao xed Dog Mei did receive scene dividends for their CPF Investment Account 2021. Feng Hao wants to retire at age 65. Ho la durmind but he will need a capital sum of 52,354,000 at that time to provide his retirement income. He presently has a retirement plan with a Curent amount of $120,000 to which he will add $15,000 per year. Feng Hoo assumes that his pre retirement and post retirement rates of retum will be 8%, and that inflatice will average 3%. He expects to live to at least age 80 but wants to use age 95 for all calculations, CASE STUDY TUTOR-MARKED ASSIGNMENT 02 This tutor-marked assignment is worth 40% of the final mark for COR 167e Managing Yote Personal Finances Introduction Feng Hao 35 and Dong Mei 32 have been married for 6 years. They have three children Dong Mei's mother is the only parent that he has, and she resides with Feng Ho and Dong Mei The cut-off date for this assignment is 2355hrs en 12 October 2021 PROPERTY Additional instructions: Submit your solution document in the form of a single MS Word file on or before the cut-off date shown above. DATE OF PURCHASE MARKET LOAN RENTAL PURCHASE PRICE VALUE AMOUNT AMOUNT June 2016 $850,000 $1,200,000 Nil 84.200 650 Sq Ft I Bum Condo in Bt Timah You are to include the following particulars in your submission: Course Code. Title of the TMA, SUSS PI No, Your Name, and Submission Date. Feng Hao and Dong Mei rented out their investment properties. The rental amount collected for 2021 is the same as that in 2020. All the properties are registered under Feng Hoo'stume as a single owner The websites will help facilitate your murch. However, you will be penalized if you simply cut & paste information from these websites in your assignment Scope TMAO2 test your ability to WEALTH PROTECTION - INSURANCE PLANNING The house that Feng Hao and Dong Mel now live in was purchased 5 years ago and is held in joint names. The purchase price w $1,200,000, and the couple paid $400,000 with cash and CPF, and took up a loan for the balance. When the house was first purchased, Feng Hao bought a mortgage-reducing term insurance on a joint-lifu basis to cover the initial loan value of 5800,000 at a discount rate of 1.5% pa (a feature of the policy is that it pays the outstanding a . balance of the loan at the death of the insured). The premium for the mortgage protection plan is $3.515pa Describe the use of concept of time value of money to daily transactions - Tilastrate the critical aspects of Wealth Guarding through Tax and Insurance Planning . Demonstrate Wealth Growing Process through Investment Planning and Retirement Planning - Use the key aspects of Wealth Geving through Estate Planning A doctor discovered that his wife, Doeg Mei, has some lamps in her breasts. Feng Hao decides to quickly buy a $600,000 Term plan with $500,000 Critical Illness benefit to cover Dong Mei if she contracts and/or dies from cancer. Her term plan covers her until age 99 and costs $7,305 each year. For fear of being uninsurable, Feng Hao did not reveal in the medical questionnaire in the insurance application forms that Dang Mei had discovered some lumps in her breasts and was awaiting a medical examination. The policy was approved by the insurer. About 3 years ago, Dong Mei bought a $70,000 5-year limited-premium whok life plan. The plan covers her for accelerated Critical Illness with a benefit of $50,000. The annual premium fur her plan was $7,500p.a. The Cash Value of her plan is 42.979. Dong Mei also purchased a $10,000 whole life participating policy 5 years ago. SINGLU ORE UNIVERSTY O SOCIAL SCIENCES SUSSI 210 SINGAPORE UNIVERSITY OF SOCIAL SCIENCES (SUSSI Faolo 10 COR16 Tutor Harked asigment 2 COR16 Tubar-Marion Adet 2 Retirement Planning Expense Method Non-Forfeiture Values Extended Termine Cash Value Paid-Up Insurance Years Days Regulred Retirement Amount Adjusted Rate of Return - 3% 3% End of Policy Year 1 2 3 Future Value of Ats 35 Current Age 45 Retirement 95 Expectancy 1* Year Retirement Income Q2 Shortfall 9201) 5 6 S 0 $ 10.55 $48.00 3 $ 21.82 $97.00 6 S S 31.52 S 138.00 $ 8 S4496 $ 170.00 10 $ S5709 $ $ 221 on 11 $ 71.18 $ 264.00 13 $ 8598 $ 299.00 15 $ 100.46 $ 340,00 18 $ 116.72 S 375.00 19 $ $ 200.93 $ 522.00 21 S $ 301.33 $ 664,00 22 $ 0 0 154 102 199 244 346 298 222 11 282 95 29 WEALTH GIVING-ESTATE PLANNING 7 8 9 Dong Mei had nominated her mother as nominee for her CPF monies before her marriage Dong Mei does not have a will. 10 15 20 Type Sam Assured Cash Value Feng Hoo is planning to have his will revised. Feng Han's existing will contains the following provisions "I hereby disinherit my brother Zhen Hao. He will not receive any bequests, devises, or inheritances from my estate." Premium Per Annum S1,970 Nominated Beneficiary Dung Mei Whole life (Feng Hao) $250,000 $12,600 "I hope that my coin collection will be given to my nephew WEALTH ACCUMULATION - RETIREMENT PLANNING Feng Has's Savings Account, Fixed Deposit and SRS Account eamed interest of $300, $3,375 and $1,850 respectively in 2021 "I hereby give my Toyota/SKG 2367) to my niece, Yen Yen" . "I hereby give Chao Chao $100.000 Since the will was executed, the Toyota was destroyed in an accident and Deng Meileamed about Chao Chao Chao Chao had threatened to expose some past indiscretions by Feng Hoo if he was not provided for in his will Feng Hao and Dong Mei have an active CPF Ordinary and Special Account Feng Hao xed Dog Mei did receive scene dividends for their CPF Investment Account 2021. Feng Hao wants to retire at age 65. Ho la durmind but he will need a capital sum of 52,354,000 at that time to provide his retirement income. He presently has a retirement plan with a Curent amount of $120,000 to which he will add $15,000 per year. Feng Hoo assumes that his pre retirement and post retirement rates of retum will be 8%, and that inflatice will average 3%. He expects to live to at least age 80 but wants to use age 95 for all calculations

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