CHAPTER 5: NEEDS ANALYSIS - INDIVIDUAL PRACTICE 1

You are a financial consultant who provide financial advices on a fee basis. A client comes to your office to get an appraisal of his financial situation. The client details are extracted and summarised in the application card as follow:

Applicant's detail

Name Steve Rogers

Date of birth / Retirement Age 9th April 1981 / 60-year-old

Marital status Married

Dependant(s) / Child(ren) Stanley Rogers and Maira Rogers

Annual Income RM98,800 p.a

Spouse' s details

Name Margaret Rogers

Date of birth / Retirement Age 11th July 1983 / 55-year-old

Annual Income RM62,400 p.a

Applicant's Investments and Insurance Details

Investment portfolio RM135,000 invested in mutual bonds and savings

Insurance RM185,000 life insurance upon maturity

Applicant's Needs

Education fund for children RM78,000 per child

Final burial expense RM21,500

Outstanding personal loans RM64,000

Mortgage on property RM465,000; 45% of the outstanding amount has to be settled in full upon his sudden demise

Safety net 70% out of annual income

Inflation rate 4.5% p.a

You are requested to conduct a Needs Analysis for Mr. Steve Rogers based on the information given. Use the table below to assist with your analysis. You are required to attempt this question properly using MS Excel application. Round off all figures to nearest dollar.

Needs Analysis for

i. Lump-sum needs upon death

ii. Income needs

iii. Investment and insurance available

iv. Additional life insurance needs