In below case study, we are gonna figuring out how will banking on property investment help Thomas, a family man to meet his goals ! Let’s start the exploration by glancing through Thomas’ family tree.

Thomas has been a lecturer at a local university for more than 12 years. His wife, Mary is a housewife and they have 3 young children.

“Life is quite tough now. My wife resigned from work when she gave birth to our youngest daughter. Our children’s expenses are increasing, so we need to cut down on other expenses.” said Thomas.
“But what else can we cut ? ” Thomas asked CC Advisory.

Thomas sighed that, in order to pay for his family’s current expenses, he has to take on a few part-time jobs, including giving tuition. “Sometimes, I return home late and find my children asleep on the sofa, having waited for me to come home. My heart sinks at the sight. ”

Thomas’ life goals :

Obviously, Thomas wanted to take charge of his finances and address any financial gaps for medium and long term.

In order to fulfill Thomas’ needs, we had performed an ALIEE ( Assets, Liability, Income, Expenses / Lifestyle and emotion ) analysis for him. The results are as below :

Let’s take a look of Thomas’ net worth analysis and cash flow analysis.

Based on the analysis above, Thomas has a manageable debt-to-asset ratio (DSR) of 41 %. His ability to withstand any insolvency is still high at 58.9 %. His immovable (fixed) assets or property investment portfolios make up a bigger portion ( 80.2 %) of his assets and his movable or investment assets make up the remainder. His liabilities are mainly mortgage loans.
From the case flow analysis and financial ratio, Thomas’ LIR is 51 % and his DSR is moderate at 36 %. His saving ratios of 13 % can be used for his next property investment. Compared with optimum financial ratio (40:40:20) , Thomas has a high LIR exposure,20 % of which comes from his insurance premiums .
Thomas’ Life Goal Analysis

Thomas’ life goal analysis shows that he needs RM 3,177,860 to fund all of his life goals. On the other hand, it shows that Thomas has a capital shortfall of RM 790,053. If Thomas were to pass away tomorrow, there will be a capital shortfall of RM 2,346,515. If he were to disabled, there will be a capital shortfall of RM 7,358 per month.

How can Thomas move towards to achieve his life goals?

Find out what are the possible personal financial strategies here.

Goals without ACTIONS are just Dreams.”
-Michelle Denio

1 Comment

  1. Pingback: “GOALS WITHOUT ACTIONS ARE JUST DREAMS. ” -Michelle Denio - CC Advisory

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