Regarding to our case study article about the young couple last Tuesday, Ahmad and Siti, do you have any solutions on your mind ?
Without any dispute, life is about choices and priorities. As in our previous case study, Ahmad and Siti should take actions in order to achieve their expectations based on their financial analysis. The couple can choose not to make the little changes to their current lifestyle or they can choose to defer discretionary expenses to achieve their goals. Here are a few things that the couple can do.
To improve their cash flow, the couple can sell one of their properties.
- Renting out their property is also highly recommended. Doing so can bring them passive income.
- The couple should eliminate their credit card debt, which is carrying the highest interest rate.
- If possible, the couple should reduce the expenses spent on family vacations and household
- The couple should invest any “cash”saved.
- The couple should look for ways to increase the annual return of their investment portfolio to 8.85%, with assets that suit their risk profile. This can be done with a well-structured, efficient investment portfolio based on their preferences and time frame. Since their current portfolio consists of local equities and bonds. they can start looking at regional and/or global exposure.
- The couple can also reduce their desired retirement nest egg of RM60,000 a year or the education fund for their three children.
Overall, it is a tall order for Ahmad and Siti to achieve all that they desire, based on their current financial position. However, they can take baby steps towards their goals if they prioritize and start making changes.
Hope you have a great insight from this case study.
January is a festive season.Stay tuned to our upcoming articles !
Happy Tuesday to everyone who is reading this. Also, Happy Chinese New Year to those who are celebrating !
Gong Xi Fa Cai !