Financial Planning Case Study, APU, Malaysia Deven and Sarita’s years have been married for the past 10 years. They have two children, Raju and Shanti

Deven and Sarita’s years have been married for the past 10 years. They have two children, Raju and Shanti. They pay for their stay with an Indonesian maid, Kak Rina, to take care of their children. The maid costs them RM18,000 per annum.

Sarita is the Regional Sales Manager for a multinational pharmaceutical company. She is required to travel around the country and ASEAN countries as part of her job. She reports to the Vice President of Sales, located in the United States. She is provided with a company car that was newly purchased at RM180,000, three years ago. The current market value of the car is RM120,000.

In the year 2021, she traveled a total of 50,500 KM of which 40,800 KM was for business purposes. The fuel consumption of the car is 7.7 KM per liter. The car uses RON97 petrol, and the average cost is RM2.50 in the year 2021. The company also pays for all her toll and parking fees for business purposes which in 2021 amounted to RM3,600 for the year. Sarita’s company also provides her with a company mobile phone and the bill is RM200 per month.

Devan purchased a Toyota Camry in June 2019 at an original purchase price of RM188,763 via a seven-year hire purchase loan. The interest rate at that time was 4%. The installment period started one month later. Devan is the General Manager of a Plantation Group. The company does not provide him with a car but they provide him with a fixed travelling allowance of RM500 per month. They also provide him with a fixed maid allowance of RM500 per month. Devan spends about RM550 per month on petrol and RM500 on tolls and parking. The road tax and insurance for the car amount to RM2,000 per annum.

Devan and Sarita live in a semi-detached terrace house located in Subang Jaya. Devan purchased the house in January 2015 for RM580,000. The first installment of the loan started in February 2013. The tenure of the loan is for 30 years. The mortgage interest loan rate was 5% with a margin of financing of 85%. The house has a freehold title and has a tenancy in a common ownership agreement.

The current market price for the house is about RM745,000. The yearly assessment and quit rent for this house are RM380 and RM53 respectively. The bank required that he purchase a Mortgage Reducing Term Assurance which was fully paid at the time of the house purchase.

Sarita purchased an apartment in Klang under her name in July 2010 at a price of RM250,000. The margin of financing was 90% and the interest rate was 4.5% per annum. The first installment started a month later. The loan tenure is 25 years. The current market value of this apartment is RM320,000.

The monthly rental that she received for this apartment in 2021 is RM1,200. The monthly maintenance fee is RM150, and the yearly quit rent and assessments are RM250 and RM53 respectively. For her tax computation, Sarita does not include the interest on her mortgage loan.

Raju and Shanti both attend a private school in Subang Jaya. Raju’s school fees are RM10,000 per semester and Shanti’s school fees are RM9,500 per semester. There are two schooling semesters per year. Other children’s expenses including extra tuition classes and extracurricular activities amount to about RM1,500 per month. The other regular average monthly and yearly expenses include.

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