As a Wealth Manager, prepare a Financial Plan based on the case background of Gary and Cynthia Lee. Your proposal should include : Investment Strategies And Other Key Factors (as appropriate)

Note : As the case may not likely contain all possibleinformation, you are required to make no more than 5necessary and reasonable assumptions as appropriatefor the case. Your report should list and explain theseassumptions at the beginning of the report.

Case Background: Gary and Cynthia are 32 & 30-year old respectively and have a son aged 3. Gary has been working as Senior Manager in a major information technology company since his graduation, holding a bachelor degree in Computer Science. He has been working hard with much stress from work and he wants to find more time for hobbies and other personal interests. After graduating from the university. Cynthia started working as a civil servant but after they had their son 3 years ago, she quitted her job and took a part-time English tutor job, which allowed her to spend more time at home raising their son. They live in a small apartment (still under mortgage) in Kwun Tong which they bought 5 years ago They do not seem to have serious financial concems since Gary expects his job should be quite stable with decent income. They did not seriously consider any financial planning so far. However, Cynthia is concemed about Gary's substantial expenses on his hobbies. Gary, on the other hand, believes that he should have the right to spend his money as long as he provides adequate financial support to the family Even they have different views about spending, they can compromise on two issues : They take their son's education seriously and plan to save enough money to help pay for his education until he finishes the undergraduate degree in a local university or overseas university). They commit to retirc at 60-year old or carlier and estimate, based on market survey, that at least HKS million should be ready for their retirement Insurance Coverage Life Insurance Gary Cynthia S1,500,000 $1,500,000 Gary and Cynthia's Financial Needs: Completely fund the university education for their son Probably buy a new car for HK$450,000 in about 3 years. They want to maintain their current living standards after retirement To establish an investment portfolio and/or other arrangements for their retirement Assets and Liabilities for Gary and Cynthia as at December 31, 2021 Liquid Assets HKS Cash & Checking A/C balance 250,000 Savings A/C balance 600,000 Investments Mutual Funds Local Stocks 300,000 500,000 Retirement Plan Mandatory Provident Fund 350,000 Housing Apartment at Kwun Tong (market value) 6,500,000 100,000 150,000 80,000 Automobile Car at market value Personal Property Watches & Jewelry Furniture & Appliances Current Liabilities Current Bills (unpaid balance) 0 (Pay their bills on time) Long-term Liabilities Mortgage Loan 1,800,000 Other Loans Personal Loan 80,000 Income & Expenses Data for Gary and Cynthia for the year 2021 Income (annual) Salary (after tax) - Gary Salary after tax) - Cynthia 150,000 550,000 Expenses (annual) Mortgage payments Utilities Management Fees Property rates and taxes Other household expenses Food and supplies Restaurant Expenses Clothing Personal care Car Loan payments Gas, Tolls, Parking Repairs Entertainment and Vacation 40,000 Medical Expenses Insurance - Life, automobile 36,000 Education expenses 100,000 24,000 24,000 42,000 30,000 80,000 25,000 50,000 6,000 40,000 65,000 10,000 15,000 40,000 Case Background: Gary and Cynthia are 32 & 30-year old respectively and have a son aged 3. Gary has been working as Senior Manager in a major information technology company since his graduation, holding a bachelor degree in Computer Science. He has been working hard with much stress from work and he wants to find more time for hobbies and other personal interests. After graduating from the university. Cynthia started working as a civil servant but after they had their son 3 years ago, she quitted her job and took a part-time English tutor job, which allowed her to spend more time at home raising their son. They live in a small apartment (still under mortgage) in Kwun Tong which they bought 5 years ago They do not seem to have serious financial concems since Gary expects his job should be quite stable with decent income. They did not seriously consider any financial planning so far. However, Cynthia is concemed about Gary's substantial expenses on his hobbies. Gary, on the other hand, believes that he should have the right to spend his money as long as he provides adequate financial support to the family Even they have different views about spending, they can compromise on two issues : They take their son's education seriously and plan to save enough money to help pay for his education until he finishes the undergraduate degree in a local university or overseas university). They commit to retirc at 60-year old or carlier and estimate, based on market survey, that at least HKS million should be ready for their retirement Insurance Coverage Life Insurance Gary Cynthia S1,500,000 $1,500,000 Gary and Cynthia's Financial Needs: Completely fund the university education for their son Probably buy a new car for HK$450,000 in about 3 years. They want to maintain their current living standards after retirement To establish an investment portfolio and/or other arrangements for their retirement Assets and Liabilities for Gary and Cynthia as at December 31, 2021 Liquid Assets HKS Cash & Checking A/C balance 250,000 Savings A/C balance 600,000 Investments Mutual Funds Local Stocks 300,000 500,000 Retirement Plan Mandatory Provident Fund 350,000 Housing Apartment at Kwun Tong (market value) 6,500,000 100,000 150,000 80,000 Automobile Car at market value Personal Property Watches & Jewelry Furniture & Appliances Current Liabilities Current Bills (unpaid balance) 0 (Pay their bills on time) Long-term Liabilities Mortgage Loan 1,800,000 Other Loans Personal Loan 80,000 Income & Expenses Data for Gary and Cynthia for the year 2021 Income (annual) Salary (after tax) - Gary Salary after tax) - Cynthia 150,000 550,000 Expenses (annual) Mortgage payments Utilities Management Fees Property rates and taxes Other household expenses Food and supplies Restaurant Expenses Clothing Personal care Car Loan payments Gas, Tolls, Parking Repairs Entertainment and Vacation 40,000 Medical Expenses Insurance - Life, automobile 36,000 Education expenses 100,000 24,000 24,000 42,000 30,000 80,000 25,000 50,000 6,000 40,000 65,000 10,000 15,000 40,000