FACULTY OF BUSINESS AND MANAGEMENT
BACHELOR OF BUSINESS ADMINISTRATION (HONS) FINANCE
UNIVERSITI TEKNOLOGI MARA KEDAH CAMPUS SUNGAI PETANI
PERSONAL FINANCIAL PLANNING (FIN533)
FAMILY’S FINANCIAL PLANNING
GROUP: KBA2423A
PREPARED BY:
ASMA HANANI BINTI ANUAR (2023125781)
PREPARED FOR:
MADAM HASNI BINTI ABD RAHIM
SUBMISSION DATE
7TH DECEMBER 2023
ACKNOWLEDGEMENT
First and foremost, I would like to express my deepest appreciation to all those who provided
me the possibility to finish this assignment. A special gratitude to Almighty Allah SWT for
enabling and strengthening me to complete this report.
I am very grateful to Madam Hasni Binti Abd Rahim, our respected lecturer for her assistance
in successfully guiding me through this report. I am able to complete it with ease under her
supervision which was a very enriching experience to me.
This assignment has been a lot of work, but I would not have done it without our supportive
friends who gave all the efforts to finish this report on time. Furthermore, I would like to
express my acknowledgement to the people who working alongside with me as well as my
parents who always motivate me throughout completing the report.
Thank you!
Family
Financial
Planning
2022
Prepared For
Encik Anuar Bin Nurdin
Puan Khatijah Binti Wan Nik
Table Of
Content
1
Family background
2
Income and expenses
3
Balance sheet
4
Cash flow
5
Ratios analysis
6
Income tax
7
Comment and advise
8
Recommendation
Family
background
Encik Anuar Bin Nurdin is 52 years old on 2023
and currently working as a teacher for almost
28 years at a secondary school named Sekolah
Menengah Kebangsaan Sungai Bayor. He has
one wife named Puan Khatijah Binti Wan Nik
and she is also 52 years old and also working as a
teacher at the same school his husband teaches.
In their marriage, they are blessed with three
daughters and two sons. The first child named
Mohamad Al-Jundi is 26 years old and work as
an accounting clerk. The second child named
Asma Hanani, a 22-year-old University
Technology MARA Sungai Petani student and
currently pursuing Barchelor’s Degree. Third
child, Aesya Suraya is 20 years old, also
pursuing her Bachelor’s Degree in University
Malaysia Terengganu.
Next, Alya Safiyyah is the fourth child and her age is 17 years old. She currently performs her
education at SMK Dato’ Haji Hussein. The last child, Mohamad Al-Juwaidi is 14 years old and
he is a student at SMK Sungai Bayor. All of their children are unmarried. My relationship with
Encik Anuar’s family is that I am one of the daughters in this loving family and I am willingly
to be their financial planner for 2023. My family is currently stay at Selama Perak with 6
people living in the house including my grandmother which is Puan Khatijah’s biological
mother. In 2012, Encik Anuar made a decision to buy a Semi-D house located at Taman Permai
for his family to stay. Encik Anuar also get monthly income from his second home (currently
as for renting purpose) which is a terrace house located at Taman Menteri.
1
Family
background
Vacation
Encik Anuar also spend on
vacation for his family twice
per year and during the
vacation, he will always
choose accommodation that
are
approved
by
the
Commissioner of Tourism for
tax
relief.
Other
than
acquiring
houses,
the
following is the other assets
that Encik Anuar have:
Assets
Toyota Hilux purchased on 2021. The
loan tenure is 9 years. Current market
value of Toyota Hilux is RM129,700.
Perodua Ativa purchased on 2022. The
loan tenure is 9 years. Current market
value of Perodua Ativa is RM74,600.
Toyota Camry purchased on 2012. The
loan tenure is 9 years and fully paid by
Encik Anuar. Current market value of
Toyota Camry is RM50,700
2
Family
background
Vacation
Encik Anuar also spend on
vacation for his family twice
per year and during the
vacation, he will always
choose accommodation that
are
approved
by
the
Commissioner of Tourism for
tax
relief.
Other
than
acquiring
houses,
the
following is the other assets
that Encik Anuar have:
Assets
Yamaha Y15 purchased on 2022 with 3
years loan period and the current
market value is RM11,118.
The
household
furniture
worth
RM50,000.
Maybank and BSN savings account
worth RM10,000 (RM5,000 each).
Balance at Tabung Haji as at 31
December 2022 is RM10,000 for
investment purpose.
3
Family
background
Assets
Semi-D house located at Taman Permai
4
Family
background
Assets
Toyota Hilux
5
Family
background
Assets
Perodua Ativa
6
Income &
expenses
Encik Anuar and Puan Khatijah monthly income and expenses as
at 31 December 2022
7
Income &
expenses
Encik Anuar and Puan Khatijah monthly income and expenses as
at 31 December 2022
8
Balance
sheet
Encik Anuar’s family balance sheet as at 31 December 2022
9
Balance
sheet
Encik Anuar’s family balance sheet as at 31 December 2022
10
Cash
flow
Encik Anuar’s family cash for the year ended 31 December 2022
11
Cash
flow
Encik Anuar’s family cash for the year ended 31 December 2022
12
Ratios
analysis
Solvency ratio
Net worth
RM 410,104.93
Asset
RM 834,118.00
49.17%
Savings ratio
Cash surplus
Income
Liquidity ratio
Liquid asset
RM 10,000.00
Current liabilities RM 3,000.00
3.33 times
Debt ratio
RM 70,731.58
Total debt
RM 424,013.07
RM 211,683.00
Total asset
RM 834,118.00
33.41%
50.83%
13
Income
tax
Encik Anuar’s family income tax for the year ended 31 December
2022
14
Comment
& advise
Highlight On
solvency ratio
1
According to the ratios calculated above, it
appears that Encik Anuar's financial
performance in 2022 is quite strong. It
becomes evident when his family solvency
ratio is almost 50%, specifically 49.17%. In
simple terms, the solvency ratio provides
valuable insight for this family to assess if
their portfolio assets are sufficient to cover
their debts. As we move forward in life, we
accumulate assets and utilise debt to fund
them. A solvency ratio of 50% or more is
generally considered favourable.
2
Highlight On liquidity
ratio
Understanding the liquidity ratio can provide
valuable insights into one's financial liquidity.
It's crucial to ensure you have a stable level of
liquidity to protect yourself from unforeseen
financial difficulties. Encik Anuar's family has
a liquidity ratio of 3.33 times, indicating a
healthy amount of liquidity. They are able to
meet
their
obligations
without
any
difficulties.
15
Comment
& advise
Highlight on
savings ratio
1
Additionally, the savings ratio for Encik
Anuar's family is at 33.41%. This is great
because having a savings ratio of 30% or more
is considered ideal for a family. It's crucial for
us to prioritise savings, as we can never
predict unexpected circumstances.
2
Highlight on debt ratio
Encik Anuar's family has a debt ratio of
50.83%. It is important for Encik Anuar to
exercise caution and carefully consider taking
on a new loan, as the ideal debt ratio should
not exceed 50%. It is recommended to avoid
letting your debt exceed 50% of your total
assets.
16
Recommendation
for Encik Anuar’s
family financial
Investment in ASNB
Increasing the income requires careful planning and investment strategies. At
present, Encik Anuar has invested RM10,000 in Tabung Haji as of December 31,
2022. Encik Anuar would benefit from considering both investment
opportunities and long-term financial planning to secure his future. Therefore,
an increase in cash flow could potentially result in an increase in capital. It could
help Encik Anuar consider potential investment opportunities to improve his
overall financial situation.
Considering an investment in Amanah
Saham Nasional Berhad (ASNB) could
potentially boost his long-term net
worth.There is still an opportunity for him
to boost his investment before he retires. At
52 years old, Encik Anuar may want to
consider alternative investment options
because here might be an issue with the
loan's requirements if he want to invest in
real estate planning. Encik Anuar has the
option to invest for a 5 to 10-year term or for
the long term in the future.
17
Recommendation
for Encik Anuar’s
family financial
Hibah
Family hibah takaful is becoming increasingly popular as more individuals view it
as a means of safeguarding their loved ones against unforeseen circumstances or
risks down the line. I suggest that Encik Anuar or Puan Khatijah explore the option
of a hibah takaful for their partner. In the event of an unforeseen circumstance, the
partner can utilise the hibah to effectively manage their debts, demonstrating their
commitment to overcoming challenges and securing their financial stability. In
addition, hibah takaful offers numerous advantages that the beneficiary can
utilise. For instance, if Encik Anuar were to explore the option of obtaining hibah
for his wife, it could serve as a substitute for income. Furthermore, in Islam, there
is a strong emphasis on the importance of settling debts both in life and even after
death. As a result, hibah can be utilised as a means of debt settlement. Next, unlike
a will and estate division, a hibah is a clear-cut act of giving a gift from a person to
their heirs. After the owner passes away, the recipient of the hibah becomes the
complete owner of the 'gift', whether it is in the form of cash or property.
In addition, the hibah takaful claim process is incredibly convenient and efficient,
with no extra charges involved. When you experience the loss of a loved one, the
process of claiming your rights can be incredibly burdensome and overwhelming.
Lastly, hibah takaful can serve as a fund for your child's education. Considering
Encik Anuar's son is currently 14 years old, it's natural for him to have aspirations
of pursuing higher education after completing secondary school. Nevertheless, the
ever-increasing expenses associated with education pose a challenge for parents
who strive to adequately fund their children's schooling. Continuing your studies
at a local university can be quite expensive, not to mention the even higher costs
associated with studying at a foreign university. By utilising hibah takaful, Encik
Anuar ensures that his son will have sufficient funds to pursue his education, even
in the unfortunate event of his absence.
18