3. Jamie Lee and Ross have been hearing many stories recently about acquaintances who are passing away without leaving a will, which made Jamie Lee and Ross anxious to review their estate plan with an attorney. They do not want to think about eventually passing on, but they know it is an essential part to careful financial planning. It was suggested that they assemble all of their legal documents in a place where their heirs would be able to access them if necessary. What documents would you suggest that Jamie Lee and Ross make accessible?Jamie Lee and Ross, now in their 50s, have plenty of time on their hands now that the triplets are away at college. They both realize that time has flown by; more than 24 years have passed since they married!

Looking back over the years, they realize that they have worked hard in their careers, Jamie Lee as the proprietor of a cupcake café and Ross, self-employed as a web page designer. They enjoyed raising their family and strived to be financially sound as they looked forward to a retirement that is just around the corner. They saved regularly and invested wisely over the years. They rebounded nicely from the recent economic crisis over the past few years, as they watched their investments closely and adjusted their strategies when they felt it necessary. They purchase vehicles with cash and do not carry credit card balances, choosing to use them for convenience only. The triplets are pursuing their master’s degrees and have tuition covered through work-study programs at the university.

Jamie Lee and Ross are just a few short years from realizing their goals of retiring at 65 and purchasing the home at the beach!

Current Financial Situation Assets (Jamie Lee and Ross combined):

Checking account, $5,500 Savings account, $53,000 Emergency fund savings account, $45,000 House, $475,000 IRA balance, $92,000 Life insurance cash value, $125,000 Investments (stocks, bonds), $750,000 Cars, $12,500 (Jamie Lee) and $16,000 (Ross)

Liabilities (Jamie Lee and Ross combined):

Mortgage balance, $43,000 Credit card balance, $0 Car loans, $0 Income:
Jamie Lee, $45,000 gross income ($31,500 net income after taxes)
Ross, $135,000 gross income ($97,200 net income after taxes)
Monthly Expenses Mortgage, $1,225 Property taxes, $500 Homeowner’s insurance, $300 IRA contribution, $300 Utilities, $250 Food, $600 Gas/Maintenance, $275 Entertainment, $300 Life insurance, $375