Abstract: In emerging market, financial planning is essential to accumulate wealth and financial independence. However, there is lack of awareness that could cause the retiree continues their workforce due to insufficient pension fund. This study examines how working couples with less than half a million net worth evaluated financial decisions in retirement planning using computer-aided financial fact sheets. This study adopted a real case of a working couple to evaluate their composition of savings and investment for financial decisions. Numerous analysis such as net worth analysis, insurance needs analysis, investment portfolio rebalancing, estate planning, education planning and retirement planning are applied to enhance the findings. The results highlighted that, firstly, financial planning is vital to achieve financial independence secondly, insurance needs, education and retirement funding are the most significant for people and thirdly, the sources are critical to maintain lifestyle after retirement, emergency fund such as diseases attack and the long term children education funding. Pertaining to the findings with half a million net worth is insufficient, some suggestions include reduction of unnecessary expenses, re-allocate of cash flow, adequate insurance coverage and re-balancing of investment portfolios to accumulate wealth. It is a challenge to obtain financial independence, hence, there is a need to increase the literature on financial planning. To the best of our knowledge, this is the first study that adopted a real case to provide solutions to enhance the efficiency of financial planning industry.
Stanley Yap Peng Lok, Chong Wei Ying, Cheok Mui Yee and Leow Hon Wei, 2018. A Real Case of less than Half a Million Net Worth: An Approach for Financial Planning. The Social Sciences, 13: 883-890.