Managing Your Personal Finances

Managing Your Personal Finances
Describe the concept of time value of money.

Translate key elements in their investment portfolio and retirement plan.

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