Managing Pension, Children Marriage Needs, and Asset Allocation: Case Study of Tan Family
This thesis is a case study in Tan family where Mrs. Tan is the main financial controller. She is currently 50 years old and her husband has retired since August 2011. Mrs. Tan wishes to stop working when she turns 60 years old. The main financial problems in this family is cash flow deficit estimat...
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| Main Authors: | , |
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| Format: | Theses and Dissertations NonPeerReviewed |
| Published: |
[Yogyakarta] : Universitas Gadjah Mada
2012
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| Online Access: | https://repository.ugm.ac.id/98903/ http://etd.ugm.ac.id/index.php?mod=penelitian_detail&sub=PenelitianDetail&act=view&typ=html&buku_id=55053 |
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| Institution: | Universitas Gadjah Mada |
| Summary: | This thesis is a case study in Tan family where Mrs. Tan is the main financial controller. She is currently 50 years old and her husband has retired since August 2011. Mrs. Tan wishes to stop working when she turns 60 years old. The main financial problems in this family is cash flow deficit estimated in 2012 and several years later as well as on retirement age due to quite ambitious financial objectives. Client�s current portfolio was analyzed and discovered that it does not match Client�s risk tolerance measured using Grable and Lytton (1999) questionnaire. The Client is actually able to accept riskier portfolio and thus able to improve the rate of return. The current portfolio is concentrated to more than 40% of cash and equivalent. Five scenarios are developed as solution to Client�s financial problem. They are classified into short term scenarios and long term scenarios. The short term scenarios address financial issues in the next three years and provide choices of selling physical asset, financial asset, or taking bank loan. Selling physical asset was chosen by the Client as it provides recovery plan and more ethical than taking bank loan. Long term scenarios cover solution up to the age of 85. Three business ventures are introduced here to provide Client with more cash flow. In managing financial assets, the Client is recommended to convert some assets into equity mutual fund. However, two options of investment instruments during retirement period are given. They are equity mutual fund and fixed income or hybrid mutual fund. The Client chose fixed income or hybrid mutual fund for her retirement period investment. This thesis is ended with implementation plans for the Client to follow in implementing the chosen scenarios. The last chapter concludes this master thesis. |
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