|Learn by Watching!|
The material in this video may differ somewhat from what you see on your site due to difference in version, jurisdiction, corporate content or access level. Regardless of these differences most of the core functions are consistent across all sites, so you'll be able to benefit by and large from what you learn in this video.
|Learn by Reading!|
Abdul Haqq wants to establish a Waqf worth RM 60,000 by making annual savings over the next 5 years. After discussing Waqf’s with a professional, you are going to assume there is a 6.0% return on Abdul’s savings for the next five years. Once the RM 60,000 goal has been reached, the dividend from the continue 6.0% return will be donated each year to an orphanage.
Solution using Detailed Objectives:
First, Abdul needs to know how much he will have to save per annum to reach this RM 60,000 goal in five years. From the Home screen, click on the Calculators drop-down menu and go to Present and Future Values calculator.
- Since we are calculating for the annual savings, or Periodic Payment, this field can be left blank.
- The Frequency of the payments should be set to Annual with the drop-down menu.
- The Number of Payments can be set to five – since Abdul is making annual payments over five years.
- The Interest Per Year was indicated to be 6.0%
- Abdul did not indicate he was increasing his payments, so the Index Payments Per Year can be left at the default of 0%.
- Finally we want the Future Value of the Waqf to be RM 60,000.
- Click Calculate beside the Periodic Payment field.
The result should be $10,643.78. Go back to the Home screen, and then continue to the Objectives screen, to enter this information.
- Add a new objective by clicking on the Add button above the existing entries.
- In the Description field, enter an appropriate name, such as Waqf
- In the drop-down menu beside Need For, choose Client.
- In the Amount Per Year field enter the periodic payment calculated by the Present and Future Values Calculator: $10,643.78.
- The From Year should be set to the current year since these extra planned outflows will start now.
- The To Year will be five years from now.
- The Index Rate should be set to 0%, since he is not indexing payments.
- The Need on Death field can be changed to 0%, the amount will then be subject to a maximum of 1/3 of the estate.
- The Need on Disability would be 100%.
- Select Fixed Period under the drop-down list beside Model As, since their retirement will not affect the date for setting up the waqf.
- Click Save to return to the summary Objectives screen.