Managing your personal finance Case Study Example | Topics and Well Written Essays - 750 words

Managing your personal finance - Case Study ExampleBelle is risk-adverse thus holds about$60,000 in savings account which can be used to provide allowances to her parents for 60 months if $1,000 is salaried every month and $110,000 in 1 year fixed-deposit that could be used to cover the outstanding poise on loan which is $605,230. The mortgage is charged at 1.5 percent fixed for 25 years. Her mortgage covers slender illness or permanent disability at premium of $3,359 pa. In the event she passes, the $1,500,000 Term forge and $600,000 critical illness benefits cover Kenji and Karens educational requirements. This is because, the total educational expenses are about S$25,000 today and when factoring 6 percent inflation rate in next four years, this meat will be equivalent to S$31,561.92 that is, 25000x(1+0.06)4. It is also given in the case that Belle has been advised to accommodate aside Emergency expenses (3 times her monthly gross income or about 4,500,000) that will provide fast money to her children. In addition, the limited-pay whole life plan covering Critical Illness upto $50,000 has cash assess $48,750 at premium of $19,500 pa that will give her tax benefits.(b) In the event that Belle passes on without devising any formal arrangement (as discussed in (a) above) to pass on her estate, how will her estate then be distributed. Explain with relevant references.Belle has recently discovered lumps on her breast which she suspects could be early signs of breast cancer. As she is risk-adverse, Belle decided to buy Term plan worth $1,500,000 including $600,000 Critical Illness benefits that will benefit her materialisation in the event she dies of cancer (critical illness). The plan is covered till age of 99 and she is presently 42 years old and only requires $14,604 outlay per year. Belle is 42 years old and is currently employed as Marketing Director of a multinational corporation that requires frequent travels