ADDITIONAL EXERCISE CASE STUDY OF PATRICK GROVE Patrick Grove, 46; #33 among Malaysia’s 50 richest on Forbes; The cofoun

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ADDITIONAL EXERCISE
CASE STUDY OF PATRICK GROVE
Patrick Grove, 46; #33 among Malaysia’s 50 richest on Forbes;
The cofounder and group CEO of Catcha Group is one of the
region’s savviest internet entrepreneurs. Considered by many to be
the pioneer of Malaysia’s digital economy, Grove is the driving
force behind streaming service iflix, automative portal iCar Asia
and media company Rev Asia; he also founded iProperty, Southeast
Asia's leading property portal, which he sold in 2015.
For this year Patrick Grove hired you as his personnel financial
planner. He required you to calculate for his retirement proposal
with the following information. He would like to know how much he
will get at the end of year 20.
Criteria
Proposal 1
Plan AAA
Multipurpose plan (Saving and Investment) with reward of good
habits and access to Global funds to maximize investment.
Term
5pay20 plan
(Saving every year for 5 years and enjoy the benefit for 20
years)
Annual Contribution
RM 50 000 up to 5 years only.
Guaranteed by investment provider
Investment Booster
Expected to receive and reinvested
End of year 2 to 5 = 5% of annual contribution
End of year 6 to 11 = 10% of annual contribution
End of year 12 to 19 = 15% of annual contribution
Maturity Booster
Received at end of year 20th 200% of annual
contribution.
Savings Booster
40% of annual contribution
(Payment is up to date and no
withdrawal)
Account value
25% of annual Contribution + any regular top up invested during
the duration of the plan
Non-Guaranteed based on the market return
Averaging market return
XXXX Islamic Global Fund = 20% every year.