1. The following is some information of Mr. Trump, your personal financial planning

client:* Mr. Trump is a professor at one of eight public universities in Hong Kong which has relatively stable income. His average monthly income is $100,000 each month. * He is 40 years old with a wife, one child (5 years old), and no other relatives. He is planning to have one more child in the next few years.

* He has purchased an apartment, which has an outstanding mortgage loan with monthly installment of $10,000.

* He has cash in his savings account that amounts to about $100,000.

* He is normally very busy in his work and has no time to invest his money in securities. However, he would like to take risk and receive a high rate of return.

1. (a)Based on the above information; give recommendations on the life insurance product(s) and/or annuity product(s) for estate planning and/or retirement planning that you believe are most suitable for Mr. Trump. There is not a single right answer for this question. You need to formulate good arguments for your suggestions and try your best to persuade Mr. Trump that your suggestions are the best for him. Explain your recommendations very carefully and try to make comparisons with other possible alternatives. (20 points)
2. (b)If you have a chance to talk to Mr. Trump again. What other information do you want to collect from Mr. Trump so that you can improve upon your financial plan for him? (10 points)

Answer rating: 100% (QA)

a Considering Mr Trumps stable income family situation and desire for high returns with limited time for investment I recommend a combination of life insurance and annuity products for both estate pla... View the full answer