Please give answer on urgent base Read the following case scenario and Prepare a 1,500 word...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Please give answer on urgent base Read the following case scenario and Prepare a 1,500 word financial report ASSIGNMENT SCENARIO: Faisal and Sarah are in their late 50's and considered themselves financially secure and comfortable with their lifestyle and future plans. Faisal is a Senior Engineer in the Aerospace industry while Sarah works part time (0.6 Full Time Equivalent - FTE) as an Architect. They have three children: Sadiq, Jay and Lidia. Jay and Lidia are twins (age 19), and in September 2022 started university (assume 3 years course). Sadiq is 24 and is currently working towards her ACCA, hoping to finish in in 2025. Their financial goal was for both of them to retire when Faisal turns 65 and enjoy their time together. They wanted to purchase a holiday home in Spain with a planned budget of 200,000 Euros, support Jay and Lidia during their studies at university, and help Sadiq with a house deposit of about 15,000 to 20,000. Unfortunately, recent events have made them rethink their plans. In September 2022, Faisal fell ill and was hospitalised. He had a minor stroke (transient ischaemic attack - TIA). He has recovered, and is back at work 3 days a week (0.6 FTE). However, due to the loss of income the family had to tap into their savings to pay for the family Christmas holiday in Maldives. Faisal is now considering retiring earlier than planned and is wondering whether the family savings are sufficient to meet their plan and support everyday expenses. He has serious concerns about his health and believes that working in a high stress environment contributed towards his health problems. Faisal wants to retire by the end of this calendar year (2023). Sarah is planning to carry on working for another couple of years but she would like to retire sooner rather than later. Faisal and Sarah have always enjoyed their incomes and are used to going out to dinner at least twice a week and having at least 2 overseas holidays a year, plus regular city breaks with their friends and children. Faisal enjoys golf and is a member of a local golf club for an annual subscription of 950. Sarah likes shopping and decorating their home. Between them they spend about 500 per month in total on treats and treatments and Sarah's personal trainer. In February 2022 they bought an Audi Q7 on a personal contract hire. The monthly payments are 550pm for the next two years. They have another car, BMW 1 series that is used for short trips. This car was bought outright five years ago. About three years ago Faisal invested 85,000 in Polar Capital Global Technology Fund (https://www.trustnet.com/factsheets/o/g5v6/polar-capital-global-technology-i-gbp). The investment had initially generated substantial returns (over 50%) but it's recent performance has worsened and the fund is currently worth 100,000. Faisal does not understand how it works as the fund was recommended by his work friend who is a technology enthusiast. Faisal is worried that the fund is too risky and is considering selling it. He does not have good understanding of finance and investment, and given the change in his personal circumstances, he considers himself to be more risk averse than in the past. The recent events has made both Faisal and Sarah think about their future in a different light, and they are now focussed on securing their financial future in the short to medium term, as well as being concerned about what would happen to their assets and income in the event of either of them dying prematurely. They have come to you for advice on the following matters: (1) (ii) (iii) They realise that the earlier retirement date will reduce Faisal's pension expectations. You have been asked to consider the options Faisal has for retiring by the end of this calendar year, quantify the impact, and recommend the best course of action. He wishes to secure an appropriate income a) up to state pension age and b) thereafter. You are also asked to consider how Faisal's changed circumstance impact on Sarah's pension planning - what recommendations can you make in relation to her early retirement and to ensure she is financially secure for the future should Faisal die prematurely? They have also asked whether there are any other steps they should take to help their children with the university courses and the house deposit, as well as their ambition of purchasing a holiday home, and ensuring their family's future financial security. The family expects a clear plan that outlines whether they can meet those objectives. You will need to consider - what an 'appropriate income' might mean in real terms, - the most efficient use of their pension savings and other existing assets (for example: non pension investments and savings, equity investment and inherited money), and - what provision they should make to minimise the inheritance tax implications in their pension strategies should Faisal and/or Sarah pass away prematurely. Financial details are stated below. Financial Details Faisal Khan Bray 59 Role Salary(pa, full time basis) Pension (1) Contribution Fund Value Pension (2) Current Value State Pension Assets: Cash ISA Investments Bank Deposit (recent inheritance net of tax) Home Expenditure: Monthly expenses Senior Engineer 90.000 Group Personal Pension (DC) 8% + Employer 8% 430,000 Personal Pension (DC) 140,000 (no contributions since 2003) 34 years | Sarah Khan Age 58 Architect 85,000 Group Personal Pension (DC) 5%+Employer 6% 20,000 0.65% 100,000 - Polar Capital Global Technology Fund 210,000 Occupational Defined Benefit (DB) @5,000pa RPI index linked with 50% spouses benefit (left scheme in 2004) NRA 60 30 years 14,000 @ 0.8% 60,000 @0.1% 750,000 market value joint ownership, capital and interest mortgage cost 1,350pm, repayments will finish in June 2025. Joint life first death term assurance -sum assured 230,000. Term ends 2025. Premium 60pm Estimated at 5,500 (excluding savings and holidays) Includes financial support provided to each of their children while at university of about 6,000pa. The total also includes monthly mortgage payments, council tax, bills, and any other reoccurring monthly living expenses. Please give answer on urgent base Read the following case scenario and Prepare a 1,500 word financial report ASSIGNMENT SCENARIO: Faisal and Sarah are in their late 50's and considered themselves financially secure and comfortable with their lifestyle and future plans. Faisal is a Senior Engineer in the Aerospace industry while Sarah works part time (0.6 Full Time Equivalent - FTE) as an Architect. They have three children: Sadiq, Jay and Lidia. Jay and Lidia are twins (age 19), and in September 2022 started university (assume 3 years course). Sadiq is 24 and is currently working towards her ACCA, hoping to finish in in 2025. Their financial goal was for both of them to retire when Faisal turns 65 and enjoy their time together. They wanted to purchase a holiday home in Spain with a planned budget of 200,000 Euros, support Jay and Lidia during their studies at university, and help Sadiq with a house deposit of about 15,000 to 20,000. Unfortunately, recent events have made them rethink their plans. In September 2022, Faisal fell ill and was hospitalised. He had a minor stroke (transient ischaemic attack - TIA). He has recovered, and is back at work 3 days a week (0.6 FTE). However, due to the loss of income the family had to tap into their savings to pay for the family Christmas holiday in Maldives. Faisal is now considering retiring earlier than planned and is wondering whether the family savings are sufficient to meet their plan and support everyday expenses. He has serious concerns about his health and believes that working in a high stress environment contributed towards his health problems. Faisal wants to retire by the end of this calendar year (2023). Sarah is planning to carry on working for another couple of years but she would like to retire sooner rather than later. Faisal and Sarah have always enjoyed their incomes and are used to going out to dinner at least twice a week and having at least 2 overseas holidays a year, plus regular city breaks with their friends and children. Faisal enjoys golf and is a member of a local golf club for an annual subscription of 950. Sarah likes shopping and decorating their home. Between them they spend about 500 per month in total on treats and treatments and Sarah's personal trainer. In February 2022 they bought an Audi Q7 on a personal contract hire. The monthly payments are 550pm for the next two years. They have another car, BMW 1 series that is used for short trips. This car was bought outright five years ago. About three years ago Faisal invested 85,000 in Polar Capital Global Technology Fund (https://www.trustnet.com/factsheets/o/g5v6/polar-capital-global-technology-i-gbp). The investment had initially generated substantial returns (over 50%) but it's recent performance has worsened and the fund is currently worth 100,000. Faisal does not understand how it works as the fund was recommended by his work friend who is a technology enthusiast. Faisal is worried that the fund is too risky and is considering selling it. He does not have good understanding of finance and investment, and given the change in his personal circumstances, he considers himself to be more risk averse than in the past. The recent events has made both Faisal and Sarah think about their future in a different light, and they are now focussed on securing their financial future in the short to medium term, as well as being concerned about what would happen to their assets and income in the event of either of them dying prematurely. They have come to you for advice on the following matters: (1) (ii) (iii) They realise that the earlier retirement date will reduce Faisal's pension expectations. You have been asked to consider the options Faisal has for retiring by the end of this calendar year, quantify the impact, and recommend the best course of action. He wishes to secure an appropriate income a) up to state pension age and b) thereafter. You are also asked to consider how Faisal's changed circumstance impact on Sarah's pension planning - what recommendations can you make in relation to her early retirement and to ensure she is financially secure for the future should Faisal die prematurely? They have also asked whether there are any other steps they should take to help their children with the university courses and the house deposit, as well as their ambition of purchasing a holiday home, and ensuring their family's future financial security. The family expects a clear plan that outlines whether they can meet those objectives. You will need to consider - what an 'appropriate income' might mean in real terms, - the most efficient use of their pension savings and other existing assets (for example: non pension investments and savings, equity investment and inherited money), and - what provision they should make to minimise the inheritance tax implications in their pension strategies should Faisal and/or Sarah pass away prematurely. Financial details are stated below. Financial Details Faisal Khan Bray 59 Role Salary(pa, full time basis) Pension (1) Contribution Fund Value Pension (2) Current Value State Pension Assets: Cash ISA Investments Bank Deposit (recent inheritance net of tax) Home Expenditure: Monthly expenses Senior Engineer 90.000 Group Personal Pension (DC) 8% + Employer 8% 430,000 Personal Pension (DC) 140,000 (no contributions since 2003) 34 years | Sarah Khan Age 58 Architect 85,000 Group Personal Pension (DC) 5%+Employer 6% 20,000 0.65% 100,000 - Polar Capital Global Technology Fund 210,000 Occupational Defined Benefit (DB) @5,000pa RPI index linked with 50% spouses benefit (left scheme in 2004) NRA 60 30 years 14,000 @ 0.8% 60,000 @0.1% 750,000 market value joint ownership, capital and interest mortgage cost 1,350pm, repayments will finish in June 2025. Joint life first death term assurance -sum assured 230,000. Term ends 2025. Premium 60pm Estimated at 5,500 (excluding savings and holidays) Includes financial support provided to each of their children while at university of about 6,000pa. The total also includes monthly mortgage payments, council tax, bills, and any other reoccurring monthly living expenses.
Expert Answer:
Answer rating: 100% (QA)
Based on the provided case scenario here is a concise financial report addressing Faisal and Sarahs concerns 1 Retirement Planning for Faisal With Faisal considering early retirement due to health con... View the full answer
Related Book For
Database Systems A Practical Approach to Design Implementation and Management
ISBN: 978-0132943260
6th Edition Global
Authors: Thomas Connolly, Carolyn Begg
Posted Date:
Students also viewed these finance questions
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
-
Umida Ltd is considering acquiring Trinity Ltd. Both companies are all-equity firms. Umida and Trinity have 5 million and 6 million shares outstanding respectively. Umida generates $2 million in...
-
Artsy Corporation has been sued in U.S. Federal Court on charges of sex discrimination in employment under Title VII of the Civil Rights Act of 1964.7 The litigation at contention here is a...
-
Selected transactions from the journal of Teresa Gonzalez, investment broker, are presented below. Instructions(a) Post the transactions to T accounts.(b) Prepare a trial balance at August 31,2010....
-
In Example 6.7, let \(m_{1}=3 m_{2}\). (a) Where on axis A is the center of mass of the two-cart system? (b) Where on axis A would you need to place a third cart of inertia \(m_{3}=m_{1}\) so that...
-
Wayne Rogers Corp. maintains its financial records on the cash basis of accounting. Interested in securing a long-term loan from its regular bank, Wayne Rogers Corp. requests you as its independent...
-
1. 2. (c) Be(OH)2 (d) Sr(OH)2 Number of amphoteric compounds among the following is (a) BeO (B) Bao The stepwise formation of [Cu(NH)]* is given below: C ANH, LE [Cu(NH, ) [Cu(NH)]+NH, [Cu(NH3)2]+NH,...
-
The whistleblowing aspects of this case were first discussed in the text. What follows is a more comprehensive discussion of accounting and auditing issues. In 2005, Tony Menendez, a former Ernst &...
-
Show that the energy of neutrons in neutron diffraction is 0.08 eV.
-
The portion of uncalled amount of capital that can be called up only on winding up of the company is known as A. Authorized capital B. Issued capital C. Subscribed capital D. Reserve capital
-
An exporter may be not willing to ship products to an importer without an assurance of payment from a bank. Why?
-
1 0 . Developing countries without significant market power often employ an optimal tariff. Discuss?
-
3) A nation can produce two products: steel and wheat. The table below is the nation's production possibilities schedule. Product Steel Wheat A 0 100 Production Possibilities B 1 90 C 2 75 D 3 55 E 4...
-
How did income distribution in the US change in the early 2000s? O The number of Americans living with wealth increased. The number of Americans living in poverty decreased. O The gap between rich...
-
A group of surgeons are considering opening a surgical center in downtown Vancouver, offering foot, ankle, knee and hip surgery to the general public. The surgeons believe that their success of...
-
The Higher the time period of the financial security the higher the. ............... risk. O a. Maturity O b. Default and Maturity Oc. Default O d. Liquidity
-
What is meant by the term client-server architecture and what are the advantages of this approach? Compare the client-server architecture with two other architectures.
-
Describe business situations in which an individuals or businesses behavior would be considered: (a) Illegal and unethical; (b) Legal but unethical; (c) Illegal but ethical.
-
For each stage of the database system development lifecycle identify examples of the facts captured and the documentation produced.
-
Identify the sample.
-
Test the overall significance of a regression model and identify the components of this test from your computer output.
-
Based on the strategy, what type of sampling technique will be used to identify the sample? a. Why did you choose this type of technique?
Study smarter with the SolutionInn App