Jeff and Ann are both 28 years old. They have been married for three years, and...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Jeff and Ann are both 28 years old. They have been married for three years, and have a son who is almost two, and will be expecting their second child in a few months. Jeff is a bank teller in a local bank while Ann is a housewife. Jeff has just received a RM60-per-week pay raise. Currently, his income is RM 960 per week, which, after tax, leaves him with RM3,200 a month. His company provides a group life insurance plan and a medical/hospital/surgical plan. All of these group plans will protect him as long as he works with the bank. When Jeff received his pay raise, he decided that a part of it should be used to add to his family's protection. Jeff and Ann talked to their insurance agent, who has reviewed the insurance plan that Jeff had obtained through his company. In addition to that, Jeff is also protected by the Social Security Organisation (SOCSO), which provides some basic protection against the loss of Jeff's income if he becomes totally disabled or if he dies before his children reach the age of 18. However, most of the protections are only basic, which serve as a foundation for Jeff and Ann to build on. For example, SOCSO payment to Ann would only be approximately RM 1,550 per month if Jeff dies leaving behind his two children under the age of 18. Yet, the family's total expenses would soon be higher after the birth of the second baby. Jeff is considering to purchase Proton X70 with RM120,000. As a financial adviser, you are required to take into consideration Jeff's current financial situation and advise him on his decision to buy a new car. Jeff and Ann are both 28 years old. They have been married for three years, and have a son who is almost two, and will be expecting their second child in a few months. Jeff is a bank teller in a local bank while Ann is a housewife. Jeff has just received a RM60-per-week pay raise. Currently, his income is RM 960 per week, which, after tax, leaves him with RM3,200 a month. His company provides a group life insurance plan and a medical/hospital/surgical plan. All of these group plans will protect him as long as he works with the bank. When Jeff received his pay raise, he decided that a part of it should be used to add to his family's protection. Jeff and Ann talked to their insurance agent, who has reviewed the insurance plan that Jeff had obtained through his company. In addition to that, Jeff is also protected by the Social Security Organisation (SOCSO), which provides some basic protection against the loss of Jeff's income if he becomes totally disabled or if he dies before his children reach the age of 18. However, most of the protections are only basic, which serve as a foundation for Jeff and Ann to build on. For example, SOCSO payment to Ann would only be approximately RM 1,550 per month if Jeff dies leaving behind his two children under the age of 18. Yet, the family's total expenses would soon be higher after the birth of the second baby. Jeff is considering to purchase Proton X70 with RM120,000. As a financial adviser, you are required to take into consideration Jeff's current financial situation and advise him on his decision to buy a new car.
Expert Answer:
Answer rating: 100% (QA)
Sul n I would not recommend Jeff to buy a new car because he w... View the full answer
Related Book For
Managerial accounting
ISBN: 978-0471467854
1st edition
Authors: ramji balakrishnan, k. s i varamakrishnan, Geoffrey b. sprin
Posted Date:
Students also viewed these business communication questions
-
Mr. and Mrs. Lucky have been married for 25 years. Last year, they won $200,000 at a casino. They knew that this would put them in the highest tax bracket for the year. To avoid this, they went to...
-
Kano and his wife Hoshi have been married for 10 years and have two children under the age of 12. The couple has been living apart for the last two years and both children live with Kano. Kano has...
-
A. Ray and Maria Gomez have been married for 3 years. Ray is a propane salesman for Palm Oil Corporation and Maria works as a city clerk for the City of McAllen. Rays birthdate is February 21, 1990...
-
Calculate UTX's market value-added (MVA) for each year 2010-2012.
-
1. Find the cost of operating a 1.50-A motor on a 110-V circuit for 2.00 h at $0.08/kWh. 2. Find the cost of operating a 2.50-A motor on a 110-V circuit for 3.00 h at $0.07/kWh. 3. Find the cost of...
-
Determine the resultant of the three forces of Problem 2.23. Problem 2.23 Determine the x and y components of each of the forces shown. 120 N SO N 150 N 30 35 40
-
Suppose Sunshine Florists, Inc., has cash of \($40,000,\) receivables of \($30,000,\) and furniture and fixtures totaling \($170,000.\) Sunshine Florists, Inc., owes \($60,000\) on account and has a...
-
You bought one of Bergen Manufacturing Co.s 7 percent coupon bonds one year ago for $1,080.50. These bonds make annual payments and mature six years from now. Suppose you decide to sell your bonds...
-
Following is the adjusted trial balance, with accounts in alphabetical order, for TRN Magazine as at January 3 1 , 2 0 2 3 : Debit Credit Accounts receivable $ 2 1 , 4 0 0 Accumulated depreciation,...
-
How do concepts such as Brooks Law and the effects of sustained overtime cause us to rethink the best ways to accelerate a project? Is it particularly ironic that these acceleration efforts can...
-
Instructions Self-awareness is a necessary component in your decision-making process. Without self-awareness, you will be plagued with proverbial blind-spots that will inevitably end in client harm....
-
Describe the role of user and group permissions in operating systems. How do concepts like Access Control Lists (ACLs) and Role-Based Access Control (RBAC) enhance security ?
-
Explain the role of device drivers in the operating system. What are the key challenges in developing and maintaining device drivers for various hardware components ?
-
Discuss the role of system calls in operating system functionality. What mechanisms are in place to ensure system calls are secure and efficient ?
-
a ) What is the essential concern motivating the requirement that allocations to partners have Substantial Economic Effect? b ) Describe the criteria under the basic test for Economic Effect and...
-
How do hypervisors and containerization differ in their approach to virtualization? What are the security implications of each ? Explain
-
Total sales volume for a new alarm company is currently growing at a rate of 10 %, with a projected maximum of 1,000. If the company sold 100 units last month, approxi- mately how many will they sell...
-
What are the principal alloying elements in SAE 4340 steel?
-
Precision Medicals makes medical instruments. It wishes to introduce a new line of electronic blood pressure gauges for use in hospitals and homes. The company will set up a new division solely for...
-
Atman Enterprises assembles satellites using customer supplied parts and materials. A customer has asked Atman to bid on a new model of satellites and estimates purchasing eight units. Atman believes...
-
Motown Manufacturing makes trumpets and other fine musical instruments. Motown currently is deciding whether to buy 100 units of a component for piccolos from an outside supplier or to make them...
-
Let a be the number such that the area to the right of z = a is 0.21. Without using a table or technology, find the area between z = a and z = a.
-
Your medical terminology instructor listed the following grades for the class out of a 75-point test: 34, 36, 41 , 43, 44,49,50, 55,57, 60,64, 66, 67,67, 67,68,68,69, 70, 73 a. Find the 90th...
-
From the following list of number of discharges each day in September, compute the mean, median, mode, and range. Round the mean and median to one decimal point. University Hospital Number of...
Study smarter with the SolutionInn App