Combine your answer for this section with your answers for Section B in one word document. Upload to Moodle after you finished. Mr. and Mrs. Chan are both 42 years old and they approach you, a wealth manager, for recommendation about their retirement plan. These are the information from the couple : Age : Both are 42, with no children Jobs : Mr. Chan (IT Manager); Mrs. Chan (Human Resources Manager) Target retirement age: 60 years old (for both) Life expectancy : 90 years old (for both) Annual income : $540,000 (after tax) for Mr. Chan $450,000 (after tax) for Mrs. Chan Monthly expenses : $32,000 for Mr. Chan : $23,000 for Mrs. Chan Investment Cash on hand : Combined investment in mutual funds (mix of bonds and stocks) $1,000,000 (average annual return over the past 10 years : 7%) : Combined $500,000 : No (will go back to Canada to take up family property after retirement) : 70% of their current level after retirement Apartment Monthly expenses Based on the given information, you agree with the couple that the investment return in the future will be set at the same 7% per year. They will also leave their current investment in mutual funds of $1,000,000 unchanged and allow it to grow steadily until their retirement Assume end-of-period cash inflows and outflows, and shows all steps clearly round up your answers to an integer): a. (13 marks) b. Calculate how much retirement fund they should have at the retirement age of 60. Explain the underlying concept in your calculation. How much additional funds they have to save every year since now until they retire ? (12 marks) Discuss other factors they should consider about their retirement plan. (5 marks) C. Combine your answer for this section with your answers for Section B in one word document. Upload to Moodle after you finished. Mr. and Mrs. Chan are both 42 years old and they approach you, a wealth manager, for recommendation about their retirement plan. These are the information from the couple : Age : Both are 42, with no children Jobs : Mr. Chan (IT Manager); Mrs. Chan (Human Resources Manager) Target retirement age: 60 years old (for both) Life expectancy : 90 years old (for both) Annual income : $540,000 (after tax) for Mr. Chan $450,000 (after tax) for Mrs. Chan Monthly expenses : $32,000 for Mr. Chan : $23,000 for Mrs. Chan Investment Cash on hand : Combined investment in mutual funds (mix of bonds and stocks) $1,000,000 (average annual return over the past 10 years : 7%) : Combined $500,000 : No (will go back to Canada to take up family property after retirement) : 70% of their current level after retirement Apartment Monthly expenses Based on the given information, you agree with the couple that the investment return in the future will be set at the same 7% per year. They will also leave their current investment in mutual funds of $1,000,000 unchanged and allow it to grow steadily until their retirement Assume end-of-period cash inflows and outflows, and shows all steps clearly round up your answers to an integer): a. (13 marks) b. Calculate how much retirement fund they should have at the retirement age of 60. Explain the underlying concept in your calculation. How much additional funds they have to save every year since now until they retire ? (12 marks) Discuss other factors they should consider about their retirement plan. (5 marks) C