In: Accounting
Harry, aged 52, has two children, aged 18 and 16 respectively. His wife died of cancer last year. His annual salary is HK$800,000 as a Senior Manager in a bank. He has an apartment with a current market value of $8,000,000, mortgage outstanding of $1,000,000 and has 8 years remaining term. Since he spent substantial medical expenses for his deceased wife, he has around $1,500,000 liquid asset left. However, he also got $800,000 death benefits from his wife life insurance policy and his employer provides a $1,000,000 life insurance policy coverage with his two children as the beneficiaries.
Ans a. | |||||||
Age | annual salary | aprox exp. 30% | aprox loan instalment | he has liquid assets | wife's death benefits | Annual liquid assets | |
52 | $ 800,000 | $ 240,000 | $ 124,000 | $ 1,500,000 | $ 800,000 | $ 2,736,000 | |
53 | $ 800,000 | $ 240,000 | $ 124,000 | $ 3,172,000 | |||
54 | $ 800,000 | $ 240,000 | $ 124,000 | $ 3,608,000 | |||
55 | $ 800,000 | $ 240,000 | $ 124,000 | $ 4,044,000 | |||
56 | $ 800,000 | $ 240,000 | $ 124,000 | $ 4,480,000 | |||
57 | $ 800,000 | $ 240,000 | $ 124,000 | $ 4,916,000 | |||
58 | $ 800,000 | $ 240,000 | $ 124,000 | $ 5,352,000 | |||
59 | $ 800,000 | $ 240,000 | $ 124,000 | $ 5,788,000 | |||
60 | $ 800,000 | $ 240,000 | $ 124,000 | $ 6,224,000 | |||
advice to harry: short term invenstment in share market and take short gain for your retierment planning. | |||||||
Ans b. | |||||||
No. not time to consider estate planing because already have apartment owner and reach to closing the mortgaged loan. | |||||||
so property will be free from loan mortgage. | |||||||