Here’s an example to illustrate how to use Vision Money for goals
Case Explanation
Ray is 41 years old with a child, and he has various career goals and responsibilities for the well-being of his entire family.
Current status and goals
- A deposit of 1,780,000
- Monthly household income of 150,000, household expenses of 80,000.
- Currently holding a policy with a life insurance coverage of 5,000,000 and a policy value of 1,840,000.
- The only daughter hopes to study abroad.
- Planning to retire in twenty years, aiming for a monthly budget of 80,000.
- Post-retirement, planning an annual trip , budgeting 120,000 each time.
- The biggest dream is to buy a beachside vacation villa after retirement.
Questions about Goals
- Given his current savings, income, and expenses, can he achieve his financial goals?
- If unable to achieve all financial goals, at least it should be possible to cover current family expenses, support daughter’s university education, and eventually retire to buy a house and travel.
- In the event of an unfortunate incident involving Ray, would the coverage of five million be sufficient for his family members to fulfill their life dreams?
- Recently, due to the vehicle reaching its age limit, two million was spent on a new car. Can the family’s goals still be accomplished at this point?
Current status and goals input
A deposit of two million two hundred thousand
Main Menu->My Goals->Option->Base Setting，Choose the accounts for goals, total account value 1,755,642
Monthly Salary 150,000, Food 80,000
Main Menu->My Goals->Option->Budget Goal, Incorporate the existing income and expenditure budget
Currently holding a policy with a life insurance coverage of 5,000,000 and a policy value of 1,840,000
A Policy is an Account, Main Menu->Main Function Page->Account->Add Account
The only daughter hopes to be nurtured for studying abroad.
Future financial goals, Mian Menu->My Goals->Option->Goals, Add College Education
Planning to retire in twenty years, aiming for 80,000
Future financial goals, Mian Menu->My Goals->Option->Goals, Add Retirement
Post-retirement, planning an annual trip, budgeting 120,000
Other Spending, Mian Menu->My Goals->Option->Goals, Add Spending
Buy a beachside vacation villa after retirement
Mian Menu->My Goals->Option->Goals, Add Home Purchase
Question about Goals
Given his current savings, income, and expenses, can he achieve his financial goals?
With a return rate of 8%, it is not possible to achieve all his financial goals. By selecting the “Min. Return” the calculated result indicates that a 8.38% annual return rate is needed to accomplish all financial goals.
With an 8% annual return rate, the assets will be insufficient by 2063.
Based on his planning situation and the set priority of goals, the achievable goals are current family expenses, daughter’s education expenses, retirement and annual trip. However, beachside vacation villa cannot be achieved.
Looking at his current actual assets, with an attainment rate of only 67%, it indicates that the current asset situation is not as expected compared to the planned scenario. Therefore, with the current assets, beachside vacation villa can only be achieved at 49%.
In the event of an unfortunate incident involving Ray, would the coverage of five million be sufficient for his family members to fulfill their life dreams?
In Ray’s goals, budgetary expenses and his daughter’s overseas education are considered family responsibilities, requiring a coverage amount of 17,311,992. Currently, the coverage is five million, which is insufficient. In the event of an unfortunate incident, the protection can only cover 43% of family expenses, and there is 0% coverage for the daughter’s overseas education, indicating a complete inability to pursue studies abroad.
Spending two million on a new car – does this impact the family’s ability to achieve their goals?
After purchasing the car, the current asset achievement dropped from 67% to -7%, and expenses significantly exceeded the budget by 198%.
The achievement rates for the goals of buying a house and traveling are 0%, and the retirement goal has decreased from 100% attainment to 97%.
