Executive Summary This report provides an analysis and evaluation of the current financial health of our client Jack and Jill. Method of analysis includes the calculation and interpretation of the financial ratios as given in Appendix 1. Results of data analysed show that some of the ratios are below the recommended guideline. In particular, the savings ratio is poor due to inconsistent saving habits. As for their targeted goals, the couple will be able to start a savings program and at the same time set aside an emergency fund. Details of the saving program are discussed later in the report. After taking into account the couple’s request pertaining to their dream of owning an investment property, it is with much regret that we find it practically as well as financially impossible for the couple to own an investment property. First of all, their dream isn't feasible as they cannot use the property to generate passive income and use it as a holiday home concurrently. Secondly, the couple do not have the financial means to afford the property investment in Johor as they do not have sufficient capital to pay the downpayment, let alone monthly interests. Finally, 6 months is too short of a timespan for the couple to gain enough capital to pay afford an overseas property loan. Under the proposed investment plan, Jack and Jill will diversify investments and to spread risks across different asset classes, as opposed to the high risk investments of their existing portfolio. Several steps are advised for Jack and Jill to gradually and realistically achieve their goals. Pertaining to the couple's insurance policies that they own, it may be well covered for their individual and dependents lives but they may still have some shortfall that is not covered by their insurance policies. The couple have also not purchased any insurance policy that covers the future expenses such as child's education and retirement, thus we have recommended some insurance policies that would cover those and their overall shortfalls which may be beneficial for their future. 1) Analysis of financial condition & goals Current Financial Standing As of now, Jack and Jill’s financial standing is considered to be in a relatively unsafe zone. This is clearly evident as portrayed in their financial statements (Appendix __). Beginning with the couple’s cash and cash equivalents, both of them have fairly low cash as well as savings and fixed deposits, totalling to not more than $17000. Although the interest rates they received for their deposits is more than the industry average (0.625%), they receive little interest income due to very low deposits. As for property, although Jack and Jill’s HDB flat in Clementi has appreciated in value by $80000, the flat has not been fully paid for and still have an outstanding balance of $268000 with a loan period of 17 years. Because payments for the flat are made with CPF, their CPF amount available for retirement will be reduced. Analysis of Financial Ratios Liquidity ratio indicates the number of months that a household could continue to meet its expenses from existing cash and cash equivalents after a total loss of income. Jack and Jill have a liquidity ratio of 1.88 months which is lower than the basic guideline of 3 to 6 months. This shows that the client can meet his household expenses for only around 1 month 26 days if there is a total loss of income. This is due to their inconsistent saving habit where they do not have a specific amount to be placed into savings. If Jack and Jill loses their job, they only have slightly less than two months to find a job. This means they may not have enough time to find a job and maintain their finances. Thus, it is recommended that Jack and Jill increase their liquidity ratio to at least 3 to 4 months. Debt to Asset Ratio measures the percentage of a person’s total assets that has been financed by debts. The guideline for the ratio is 50% or less is as considered safe. Jack and Jill’s ratio is 32.99% which is lower than 50%. This means only 32.99% of the total assets has been financed by debts in which the majority is the mortgage for residence property. Thus, Jack and Jill has a lower probability of bankruptcy as their debt is not excessive and can be covered by their assets in the case of liquidation. Therefore, Jack and Jill may continue to maintain the Debt to Asset ratio at around 32.99%. Savings ratio indicates the percentage of gross income a family or individual is setting aside for future consumption. The guideline of the ratio is 10% or higher. Jack and Jill has failed the guideline as their savings ratio is 0%. This means if they retire, they would not have sufficient savings to meet their daily expenses. The ratio at 0% is due to the couple lacking a fixed saving regime which seems to be unacceptable comparing with the income both of them earn. Debt service ratio is generally the percentage of income required to repay debts. Since the Jack a