Managing Your Personal Finances
Describe the concept of time value of money.
€¢
Translate key elements in their investment portfolio and retirement plan.
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Indicate the differences between various investment instruments and insurance plans
and decide on what is most suitable.
COR167e Managing Your Personal Finances Tutor-Marked Assignment 02
SIM UNIVERSITY
Page 3 of
8
CASE STUDY
The information provided in this case study will
be used at various parts of this TMA.
Belle Lim
Divorced, Aged 42
INTRODUCTION
Belle, a Singaporean, was married to Sherlock. Together, they have two children Kenji and
Karen aged 16 and 14 respectively.
EMPLOYMENT
Belle is a Marketing Director with a multinatio
nal corporation and in the course of her work
travels one and a half weeks of every month
INCOME
AND
EXPENSES
The following represents the inflow and outflow figures for Family the period 1.1.2013 to
31.12.2013 :-
Summary of Annual Inflows
Total
Annual Salary (including Bonus and Employee’s CPF) $150,000
Employer’s CPF contribution $13,600
Interest from Savings $210
Interest from Fixed Deposit $1,100
The total family expenses incurred by Belle is shown below:
Savings
$6,000.00
Fixed Outflows
CPF for house mortgage* $??,???.??
Cash for house mortgage* $??,???.??
Car loan repayment $0.00
Insurance premium $17,963.00
Variable Outflows
Tax $4,500.00
Food $7,200.00
Transportation $5,400.00
Grooming $1,200.00
Entertainment/Vacation $5,000.00
Medical/Dental $2,400.00
Utilities/Household $6,600.00
Gifts $2,500.00