SCHOOL OF ECONOMIC FINANCE AND BANKING

UUM COLLEGE OF BUSINESS

UNIVERSITI UTARA MALAYSIA
RETIREMENT PLANNING (BWRR 3113)

Lecturer: Norliza Binti Dasahi

Office: FE 232
Phone No: 04-9286827
Email: [email protected]
Class Hour: Sunday & Wednesday 8:30 – 10 AM (Group A); 10 – 11:30 AM (Group B)

SYLLABUS FOR SEMESTER A202

Course Material:
Module 6, Retirement Planning, Registered Financial Planner Program, 4th Edition,
Malaysian Financial Planning Council, 2014.
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http://www.ppa.my
http://www.imoney.my
Retirement Planning for individuals and business owners, investment aspects of
retirement fund and public policy issues.
Course Objectives:
This course concentrate on another important aspect of financial planning which is retirement
planning. The course will examine the saving strategies related to determining the retirement
income needs, wealth building and capital preservation. The course will familiarize students
with important retirement planning concepts, including the government retirement program,
savings and investment vehicles. Overall this course will give the student’s ability to apply these
concepts to best serve their retirement planning needs and also the specific needs of clients.
After completing this course, students should be able to:
i. Understand the retirement planning process using numerous ways under capital
liquidation and capital conservation method.
ii. Measure investment risk and obstacles in retirement planning.
iii. Explain the guidelines for various retirement schemes in Malaysia.
iv. Explain on managing financial and non-financial issues surrounding retirement planning
(i.e. credit, debts, lifestyle, and legacy).

Assigned "Reading" and preparation materials:

The Scheme of Work attached in the Online Learning provides assignment and preparation
materials (such as chapter readings, outlines, and slideshows, as well as dates for quizzes and
exams): The readings bring a balance of theoretical concepts with practical application. The
chapter assignments form the basis for an understanding of the concepts. Read and prepare
before each class.
Additional Course Documents will be posted in the Online Learning from time to time to
provide additional resources. These are provided in order to broaden the student's
understanding of the concepts covered in the module, and to highlight current dynamics in the
financial planning industry and in retirement planning strategies. Quizzes, and group
assignments will be based on the course readings, assigned websites, case study.
All announcements regarding the course during the session will be posted either in the Online
Learning or Whatsapp group. Thus, please make sure you are in the group.
Grading - Student grades will be determined as follows:
- Quizzes – 50% (5 quizzes which carry 10% each)
- Assignment 1 –15%,
- Assignment 2 – 15%
- Assignment 3 – 20%

Quizzes and assignments will be due during the session, based on the textbook readings,
assigned websites, and in-class discussions. Quizzes will be given after we completed every 2
chapters.

WEEK TOPIC & SUB-TOPIC NOTES

(1) 1. INTRODUCTION Briefing on syllabus & course

assessment.
1.1 Definition of retirement planning
1.2 The retirement needs analysis Assignment group formation (5
1.3 Determination of financial
WEEK TOPIC & SUB-TOPIC NOTES

objectives at retirement.
1.4 Calculation of retirement fund to
meet objective. students per group).
1.5 Availability on non-funded safety
Reading Material Chapter 1.
nets.
1.6 The underlying principle of ADD & DROP WEEK
retirement planning
1.7 The present and future demographic
of Malaysia.
1.8 The effect of changing demographic
on retirement planning.

2. THE RETIREMENT PLANNING PROCESS Reading Material Chapter 2.

2.1 Establishing retirement goals and Fact Finding Sheet.
objectives
2.2 Gathering data relating to Quiz 1: Chapter 1 & 2
Retirement Planning Assignment 1.
(2 & 3) 2.3 Analyzing data to determine client’s
situations and his retirement needs Using Excel to generate Tables
2.4 Designing and recommending a
retirement plan
2.5 Implementing the retirement plan *Maulidur Rasul, 19 Oct 2021
2.6 Monitoring performance and (Tuesday)
reviewing the retirement plan

(4 & 5) 3. DETERMINATION OF THE REQUIRED Reading Material Chapter 3.

RETIREMENT CAPITAL
Using Excel to generate Tables
3.1 Determining the lump sum need or
Submission of Assignment 1 at
the required retirement capital sum
based on Capital Liquidation the end of Week 5.
Approach
3.2 Determining the lump sum need or
the required retirement capital sum *Deepavali, 4 November 2021
based on Capital Conservation (Thursday)
Approach
3.3 Impact of rate of return, inflation
rate, number of years to retirement
and first year income on Total Lump
Sum Needed
3.4 Limitation of Capital Conservation
 WEEK TOPIC & SUB-TOPIC NOTES

Approach

4. RISK IN RETIREMENT PLANNING

4.1 General definition of risks

(6) 4.2 Types of Investment risk Reading Material Chapter 4
4.3 Subjective risk and investment
portfolio in retirement planning Quiz 2: Chapter 3 & 4
4.4 Risk profiling for determining the
degree of risk acceptable to client

5. ANALYZING INVESTMENT RISK AND ITS

APPLICATION

5.1 Measurement of risk and its

Reading Material Chapter 5
(7) application
5.2 The concept of expected return and Assignment 2
standard deviation
5.3 Coefficient of variation
5.4 Matching return with investment
risk

(8 & 10) 6. INVESTMENT FOR RETIREMENT Reading Material Chapter 6, 7 & 8

6.1 Importance of time horizon and https://www.fsmone.com.my

impact on risks.
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6.2 Discounted cash flow calculation.
6.3 Typical asset classes and their uses. Quiz 3: Chapter 5&6
6.4 Portfolio theory applied to
retirement planning
6.4.1 asset/liability
Submission of Assignment 2
6.4.2 diversification
6.4.3 taxation
6.4.4 asset allocation
6.5 Property as an asset class
6.6 Concept, benefits and limitations of
Constant Dollar Cost Averaging
6.7 Application and benefits of Constant
Dollar Plan in Lump Sum Investment
6.8 Application and benefits of Constant
Ratio Plan in Lump Sum Investment
WEEK TOPIC & SUB-TOPIC NOTES

MID SEMESTER BREAK (3-11/12/2021)

7. RETIREMENT SCHEMES FOR

INDIVIDUAL
Reading Material Chapter 9
7.1 Types of retirement plan.
7.2 EPF scheme, http://www.kwsp.gov.my
(11) 7.3 Pension scheme for government http://www.ppa.my
servants
7.4 Retirement planning for government *Christmas, 25 December 2021
servants (Saturday)
7.5 Annuity for retirement planning,
Private retirement scheme

8. RETIREMENT PLANNING FOR SELF-

EMPLOYED AND SMALL BUSINESSES

8.1 Types of business organization and

their characteristics
8.2 Financial obligations of business
(12) Reading Material Chapter 10
owners.
8.3 Consequences of death, disability Quiz 4: Chapter 7&8
and retirement of business owners.
Assignment 3
8.4 The importance of settling debts
before disposal.
8.5 Common vehicles used by business
owners in asset accumulation.

(13) 9. MANAGING CONSUMPTION CREDITS Reading Material Chapter 11

IN RETIREMENT PLANNING
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9.1 The Rule of 78
9.2 The computation of hire purchase
loan interest and installment
9.3 The concept of Annual Percentage
Rate and Effective Annual Rate
9.4 Credit cards and their costs
9.5 AKPK and its role in debt
management
9.6 Cost of purchase under weekly and
WEEK TOPIC & SUB-TOPIC NOTES

monthly installment schemes.

10. MANAGING DEBT IN RETIREMENT

PLANNING

10.1 Computation of housing loan

installment Reading Material Chapter 12
(14) 10.2 Evaluate housing loan packages
based on Net Present Value (NPV) http://www.imoney.my
and Internal Rate of Return (IRR) Quiz 5: Chapter 9 & 10
10.3 Refinancing housing loan
10.4 Share refinancing and margin for Submission of Assignment 3
financing
10.5 Overdraft
10.6 Other types of loan for financing

11. PRE-RETIREMENT COUNSELING

11.1 Analysis of key factors affecting

retirement plan selection
11.1.1 lifestyle
11.1.2 aspirations
11.1.3 family circumstances
11.1.4 insurance This will be covered in Week 1
11.1.5 taxation
11.2 Integration of retirement plan with
retirement needs.
11.3 On-going needs for financial
planning throughout retirement.