CASHFLOW FOR THE YEAR ENDING 30/4/2008 Roshan Rohana Total

Inflow Monthly Yearly Yearly

Salary 10,000 120,000 120,000
Business income 10,000 10,000
Tax 1,533 18,390 18,390
EPF 1,100 13,200 13,200
Total inflow 7,368 88,410 10,000 98,410
Outflow
Groceries 1,000 12,000 12,000
Utilities 350 4,200 4,200
Miscellaneous 500 6,000 6,000
Vacation 2,000 2,000
Eating Out 500 6,000 6,000
Car insurance 1,500 1,500
Car maintenance 2,000 2,000
Petrol 250 3,000 3,000
Golf fees, etc 200 2,400 2,400
Books 800 800
Clothing 4,000 4,000
Charitable donations 500 500
Julianas preschool 400 4,800 4,800
Credit card: Personal expenses 1,300 15,600 15,600
Credit card: Wife expenses 700 8,400 8,400
Car HP 1,000 12,000 12,000
House mortgage 926 11,112 11,112
Zakat fitrah 26
Total outflow 7,126 96,338 0 96,338
Net cashflow 242 -7,928 10,000 2,072
NET WORTH STATEMENT AS AT 30/4/2008 Roshan Rohana Total
CURRENT ASSETS
Cash at hand -7,928 10,000 2,072
Wadiah (joint) 35,000 35,000 70,000
Gold jewelry 6,000 6,000
Tabung Haji 300 5,000 5,300
Due from company 8,000 0 8,000
Maybank stock 16,800 16,800
KPJ Healthcare stock 3,100 3,100
Tradewinds stock 6,600 6,600
Guocoland stock 3,000 3,000
PHEIM Asia Ex-Japan unit trust fund 5,000 5,000
Phillip Master First Ethical unit trust fund 2,000 0 2,000
TOTAL CURRENT ASSETS 71,872 56,000 127,872
LONG TERM ASSETS
EPF 250,000 30,000 280,000
House 175,000 175,000 350,000
Family car 42,000 42,000
TOTAL LONG TERM ASSETS 467,000 205,000 672,000
TOTAL ASSETS 538,872 261,000 799,872
CURRENT LIABILITIES
Credit card 10,000 0 10,000
TOTAL CURRENT LIABILITIES 10,000 0 10,000
LONG TERM LIABILITIES
House - Conventional 103,108 0 103,108
Family car - Islamic HP 48,000 48,000
TOTAL LONG TERM LIABILITIES 151,108 0 151,108
TOTAL LIABILITIES 161,108 0 161,108
NET WORTH 377,764 261,000 638,764
RATIO ANALYSIS & RECOMMENDATIONS
LIQUIDITY RATIOS
CURRENT ASSET/NETWORTH RATIO 20.02% CURRENT ASSETS/NETWORTH
CURRENT RATIO 3.86 CURRENT ASSETS/CURRENT LIABILITIES
SURVIVAL RATIO 10.22 LIQUID ASSETS/TAKE HOME PAY
EMERGENCY RATIO 10.57 LIQUID ASSETS/MONTHLY EXPENSES
*Assume Gold and Investments are not liquid
GEARING RATIOS
SOLVENCY RATIO 79.86% NETWORTH/TOTAL ASSETS
DEBT TO ASSET RATIO 20.14% TOTAL DEBTS/TOTAL ASSETS
DEBT SERVICE RATIO 47.87% TOTAL INTEREST BEARING DEBT/TOTAL INCOME
NON-MORTGAGE DEBTS/TOTAL INCOME RATIO 36.58% NON-MORTGAGE DEBTS/TOTAL INCOME
ANALYSIS
LIQUIDITY RATIOS
CURRENT ASSET/NETWORTH RATIO Networth is made up of 19.80% current assets. The rest are fixed assest and deferred assets.
Quite favorable as nearly one fifth of networth is made up by cash or near cash.
CURRENT RATIO The ability to pay current liabilities is 3.81 times, which is quite favorable.
Meaning, by liquidating current assets, they can settle current liabilities by more than three times.
The rule of thumb is more than 1 time.
SURVIVAL RATIO Liquid assets can cover up to 10.07 times take home salary. In case of emergency, they can
still survive with their current lifestyle for 10 months. The rule of thumb is 12 months. Need improvement.
EMERGENCY RATIO Liquid assets can cover up to 10.57 times monthly expenses. In case of emergency, they can
settle their bills and expenditure of 10.57 months. The rule of thumb is 12 months.
GEARING RATIOS
SOLVENCY RATIO 79.81% of assets are debt-free. This is due to the increased value in property.
DEBT TO ASSET RATIO Only 20.19% of assets are financed by debt, of which 13% is housing loan.
DEBT SERVICE RATIO Out of total income (take home salary), 41.05% is used to pay interest bearing debt. Quite high.
Rule of thumb is 30%.
NON-MORTGAGE DEBTS/TOTAL INCOME RATIO Out of total income (take home salary), 31.37% is used to pay non-mortgage debt. Quite high and need
protection.
RECOMMENDATIONS:
1. REDUCE EXPENDITURE TO IMPROVE CASHFLOW E.G. DINING OUT, CLOTHING
2. OBTAIN COMPANY CREDIT CARD TO AVOID UNNECCESSARY INTEREST CHARGE
3. IF POSSIBLE, DO NOT USE CREDIT CARD FOR PERSONAL AS THE COST IS THE HIGHEST. IT ALSO ENCOURAGES
LAVISH SPENDING
4. IF STILL NEEDED, CHANGE CREDIT CARD TO SHARIAH CREDIT CARD TO AVOID COMPOUNDING INTEREST ON
*CL includes the current portion of LTL
TOTAL INTEREST BEARING DEBT/TOTAL INCOME
NON-MORTGAGE DEBTS/TOTAL INCOME
Networth is made up of 19.80% current assets. The rest are fixed assest and deferred assets.
Quite favorable as nearly one fifth of networth is made up by cash or near cash.
The ability to pay current liabilities is 3.81 times, which is quite favorable.
Meaning, by liquidating current assets, they can settle current liabilities by more than three times.
Liquid assets can cover up to 10.07 times take home salary. In case of emergency, they can
still survive with their current lifestyle for 10 months. The rule of thumb is 12 months. Need improvement.
Liquid assets can cover up to 10.57 times monthly expenses. In case of emergency, they can
settle their bills and expenditure of 10.57 months. The rule of thumb is 12 months.
79.81% of assets are debt-free. This is due to the increased value in property.
Only 20.19% of assets are financed by debt, of which 13% is housing loan.
Out of total income (take home salary), 41.05% is used to pay interest bearing debt. Quite high.
Out of total income (take home salary), 31.37% is used to pay non-mortgage debt. Quite high and need
3. IF POSSIBLE, DO NOT USE CREDIT CARD FOR PERSONAL AS THE COST IS THE HIGHEST. IT ALSO ENCOURAGES
4. IF STILL NEEDED, CHANGE CREDIT CARD TO SHARIAH CREDIT CARD TO AVOID COMPOUNDING INTEREST ON
CASHFLOW AND NETWORTH STATEMENT AFTER RECOMMENDATION
CASHFLOW FOR THE YEAR ENDING 30/4/2008 Roshan Rohana Total
Inflow Monthly Yearly Yearly
Salary 10,000 120,000 120,000
Business income 10,000 10,000
Tax 1,015 12,175 0 12,175
EPF 1,100 13,200 0 13,200
Total inflow 7,885 94,625 10,000 104,625
Outflow
Groceries 800 9,600 9,600
Utilities 350 4,200 4,200
Miscellaneous 500 6,000 6,000
Vacation 2,000 2,000
Eating Out 200 2,400 2,400
Car insurance 1,500 1,500
Car maintenance 2,000 2,000
Petrol 250 3,000 3,000
Golf fees, etc 200 2,400 2,400
Books 800 800
Clothing 3,000 3,000
Charitable donations 500 500
Julianas preschool 400 4,800 4,800
Credit card: Personal expenses 0 0 0
Credit card: Wife expenses 0 0 0
Personal allowance 1,000 12,000 12,000
Wife allowance 500 6,000 6,000
Car HP 1,000 12,000 12,000
House mortgage 568 6,822 6,822
Zakat fitrah 26 26
Zakat on income 0 2,538 425 2,963
Zakat on savings 1,788 875 2,663
Total outflow 5,768 69,573 1,300 70,873
Net cashflow 2,117 25,052 8,700 33,752
NET WORTH STATEMENT AS AT 30/4/2008 Roshan Rohana Total
CURRENT ASSETS
Cash at hand 25,052 8,700 33,752
Wadiah (joint) 5,000 5,000 10,000
Gold jewelry 6,000 6,000
Tabung Haji 20,300 35,000 55,300
Due from company 8,000 0 8,000
Maybank stock 16,800 16,800
KPJ Healthcare stock 3,100 3,100
Tradewinds stock 6,600 6,600
Guocoland stock 3,000 3,000
PHEIM Asia Ex-Japan unit trust fund 5,000 5,000
Phillip Master First Ethical unit trust fund 2,000 0 2,000
TOTAL CURRENT ASSETS 94,852 54,700 149,552
LONG TERM ASSETS
EPF 220,000 30,000 250,000
House 175,000 175,000 350,000
Family car 42,000 42,000
TOTAL LONG TERM ASSETS 437,000 205,000 642,000
TOTAL ASSETS 531,852 259,700 791,552
CURRENT LIABILITIES
Credit card 0 0 0
TOTAL CURRENT LIABILITIES 0 0 0
LONG TERM LIABILITIES
House - Islamic Financing 73,108 0 73,108
Family car - Islamic HP 48,000 48,000
TOTAL LONG TERM LIABILITIES 121,108 0 121,108
TOTAL LIABILITIES 121,108 0 121,108
NET WORTH 410,744 259,700 670,444
RECOMMENDATIONS:
1. REDUCE EXPENDITURE TO IMPROVE CASHFLOW E.G. DINING OUT, CLOTHING
REDUCE EATING OUT FROM 500 PM TO 200 PM
REDUCE CLOTHING FROM 4000 PA TO 3000 PA
REDUCE GROCERIES FROM 1000 PM TO 800 PM
2. OBTAIN COMPANY CREDIT CARD TO AVOID UNNECCESSARY INTEREST CHARGE
3. IF POSSIBLE, DO NOT USE CREDIT CARD FOR PERSONAL AS THE COST IS THE HIGHEST. IT ALSO ENCOURAGES
LAVISH SPENDING
USE CURRENT ACCOUNT SAVINGS TO PAY OFF CREDIT CARD OF 10K
PROVIDE PERSONAL ALLOWANCE FOR ROSHAN 1000 PM AND ROHANA 500PM
4. IF STILL NEEDED, CHANGE CREDIT CARD TO SHARIAH CREDIT CARD TO AVOID COMPOUNDING INTEREST ON
THE OUTSTANDING BALANCE
5. REFINANCE HOUSING LOAN USING ISLAMIC FINANCING TO AVOID RIBA. IT IS ALSO BECAUSE OF CURRENT RATE
IS CHEAPER. OR ASK FOR LOWER RATE.
6. WITHDRAW EPF TO REDUCE HOUSING LOAN AS THE FORMER IS EARNING LESS THAN THE INTEREST COST OF
HOUSING LOAN. HOWEVER, THE CLIENT MUST BE ADVISED TO INVEST ELSEWHERE FOR RETIREMENT
7. BUY ANOTHER PROPERTY FOR INVESTMENT AS IT CAN INCREASE IN VALUE AND PROVIDE RENTAL INCOME.
8. REDUCE EXPOSURE IN STOCK MARKET FOR LOWER RISK INVESTMENT
SELL OFF NON-SHARIAH STOCKS AND BUY A LANDED PROPERTY INSTEAD
9. ROHANA SHOULD ACTIVELY COMPOSING FOR MORE INCOME. IF POSSIBLE NASYID SONG.
10.ASK FOR INCREASE IN EPF CONTRIBUTION FROM EMPLOYER, INSTEAD OF SALARY INCREMENT, TO PROVIDE
FOR MORE RETIREMENT SAVINGS
11.LEAVE ONLY MINIMUM AMOUNT IN CURRENT ACCOUNT. INVEST THE MONEY IN PROFIT GENERATING INSTRUMENT
WITHDRAW CURRENT ACCOUNT, INVEST IN TABUNG HAJI FOR THE TIME BEING
12.PAY ZAKAT ON INCOME & SAVINGS TO REDUCE INCOME TAX
EFFECTS FROM RECOMMENDATIONS:
1. ROSHAN HAS POSITIVE ANNUAL CASHFLOW, AN IMPROVEMENT FROM THE NEGATIVE
2. ROSHAN'S NETWORTH IMPROVED
NEW HOUSING LOAN
PV 73,108
I 6%
N 204
PMT $568.46
3. IF POSSIBLE, DO NOT USE CREDIT CARD FOR PERSONAL AS THE COST IS THE HIGHEST. IT ALSO ENCOURAGES
4. IF STILL NEEDED, CHANGE CREDIT CARD TO SHARIAH CREDIT CARD TO AVOID COMPOUNDING INTEREST ON
5. REFINANCE HOUSING LOAN USING ISLAMIC FINANCING TO AVOID RIBA. IT IS ALSO BECAUSE OF CURRENT RATE
6. WITHDRAW EPF TO REDUCE HOUSING LOAN AS THE FORMER IS EARNING LESS THAN THE INTEREST COST OF
26,800
7. BUY ANOTHER PROPERTY FOR INVESTMENT AS IT CAN INCREASE IN VALUE AND PROVIDE RENTAL INCOME.
10.ASK FOR INCREASE IN EPF CONTRIBUTION FROM EMPLOYER, INSTEAD OF SALARY INCREMENT, TO PROVIDE
11.LEAVE ONLY MINIMUM AMOUNT IN CURRENT ACCOUNT. INVEST THE MONEY IN PROFIT GENERATING INSTRUMENT
PROTECTION PLANNING
MONTHLY CASHFLOW
Inflow RM
salary 10,000
Business income
Tax 1,420
EPF 1,100
Total inflow 7,480
Outflow Roshan dies Disabled
Groceries 1,000 12,000 12,000
Utilities 350 4,200 4,200
Miscellaneous 500 6,000 6,000
Eating Out 500
Petrol 250 3,000 3,000
Golf fees, etc 200
Julianas preschool 400 4,800 4,800
Wife's personal expenses 700
Car HP 1,000 12,000 12,000
House mortgage 926 11,112
Total outflow 5,826 42,000 53,112
Net cashflow 1,654
Total net cashflow 19,848
Yearly outflow
Vacation 2000
Car insurance 1500 1,500 1,500
Car maintenance 2000 2,000 2,000
Books 800 800 800
Clothing 4000 2,000 2,000
Charitable donations 500
Zakat fitrah 26 20 20
24,000 personal maintenance
Total yearly outflow 10826 48,320 83,432
Yearly net casfflow 9,022
Capital needed to sustain family

Average amount needed per year 48,320 83,432
Principal Intact Method
= Amount needed/Adjusted Rare of Return
Adjusted Rate of Return
= (((1+Rate of Return)/(1+ Rate of Inflation))-1)*100
Rate of Return 6.00% 6.00%
Rate of Inflation 4.00% 4.00%
Adjusted Rate of Return 1.92% 1.92%
Therefore, Principal Intact Amount = 2,512,614 4,338,438
Scenario

Principal Liquidation Amount
PMT 48,320 83,432
I (adjusted rate of return) 1.92% 1.92%
n 10 15
PV $435,786.07 $1,078,228.52

Perancangan Pelaburan
Pelaburan Awal RM 1,000 RM 5,000 RM 10,000 RM 10,000
Pelaburan Bulanan RM 200 RM 500 RM 500 RM 700
Tempoh (tahun) 25 25 25 25
Jumlah dilaburkan RM 61,000 RM 155,000 RM 160,000 RM 220,000
Keuntungan Dijangkakan 10% 10% 10% 10%
Nilai matang pelaburan RM 279,635.01 RM 729,229.9 RM 789,514.62 RM 1,057,092.69
Perancangan Perlindungan Takaful
Sumbangan Bulanan RM 100 RM 150 RM 200 RM 300
Umur Peserta 25 25 25 25
Tempoh (tahun) 25 25 25 25
Perlindungan Asas RM 100, 096 RM 150,266 RM 200,242 RM 303,069
Pampasan Kemalangan RM 10,000 RM 15,000 RM 20,000 RM 30,000
Penyakit Kritikal RM 10,000 RM 15,000 RM 20,000 RM 30,000
Manfaat Hospital RM 50 RM 70 RM 100 RM 150
Nilai Matang RM 34,180 RM 51,312 RM 68,377 RM 102,979
Perancangan Pendidikan Anak
rujuk kepada Pelan 3 dalam 1 Pendidikan Anak
Perancangan Wasiat/Pembahagian Harta/Hibah
Kos penyediaan dokumen wasiat dalam RM 150 ke RM1,000 dan di bayar sekali sahaja.
Caj hibah bergantung kepada nilai harta yang hendak dihibahkan.