1) Bob and Mary have asked you to review their current portfolio allocation. a. Create a pie chart showing Bob and Mary's portfolio allocation. b. What is the most amount of money that Bob and Mary can individually contribute to their current retirement account (Bob has a SEP IRA; therefore, you will have to read ahead to answer this question). C. Based on their risk tolerance, do Bob and Mary have a sufficiently diversified portfolio? ign Layout References Maling 11 -KAASE - E Tell me what you want Review View Acrobat S91 ABCD AaBb Alb AaB Aabet ADAC MDX AD AD ABCD Find Replace Bob and Mary Bones Retirement Cone W B008//17 mayores than income of 52000 Mary a rns annual income osas. They have the iden, mes from 14Adam 111, and College Before having children, Mary was moved by Bong for 14 years Retirement Plans MOP has a S . Mary 100 ested in the Big and Mary's at dit Bo m antis and Mary was man 50.000 a year when the other tong Armand other deduction the cotton to the family income was $20. Even with that, the ones but of S inthehole Mary would try of the song Bob is current contributing $12,000 to SEPA is to change and Mary no longer ses for retirement because she below she does not how w e your show and In order of the c hanc es of Mary towel de MA S A BB ABC ABbai Aabe AaB AC AD AED Abc ABCD AGD BOCOR Bob and Mary Jones Money and early but Part Paragraph Bab - Apressive Mary-Moderate Estate Tax and Income Tax information Bob and Mary have a basic will, which was written after the first child was born. They have done other state planning. They would be there to be wi ll between the children alter the death of the w ing Both Bob and Marycurrently lives at Charlotte, NC Education F ing Bob and Mary want their chadren to go to their almamater, Censon University statutionis current per year. They want to fund of the cost of your education muring that the cost is fully funded when the chad starts school has 0.000 aC. He is the only child with any money currently wed for college is set up a UTMA account. All children are currently red in public school M y Tearly Bob and Mary Jones Addomatic Bob and Mary bought the houses the p lan was and the interest rates 7.5. Occasionally, the will alumum amount towards the principal Wide loan information: $18750,5-year o f 62, taken out two years ago Veide 2 La formation: $22,400, 5 year mot at 7.25 liter The were credit card interest rate is 175 E, X A - A Normal No Spac. Heading Heading 4 Font Paragraph Bob and Mary Jones Retirement Case Family Information Bob (DO8 02/15/1973) is a primary care physician with an annual income of $200,000. Mary (DOB 09/16/1979) earns an annual income of $15,000. They have three children, James (age 14). Adam (age 12), and Colin (age 9). Before having children, Mary was employed by Boeing for 14 years Mary was making $42,000 a year when she quither job at Boeing. After taxes and other deductions et the 401(K, her contribution to the family income was $20,000. Even with that, the Jones' budget was running an average of $1,500 a month in the hole. Mary would like to get totally out of the Boeing retirement plan, as she does not anticipate returning to work there Mary is thinking of taking a lump Sum distribution of her 401k account and rolling over all of the assets except for the Boeing stock into a self-directed IRA. Bob owns works at a contracted Physician and receives several 1099 each year. Goals and Obiectives In order of priority, the specific goals and objectives of Bob and Mary are as follows: 1. Save for retirement - Retire when Bob turns 60, with funding for a projected 30-year life expectancy 2. Provide for the family if something happens to Bob. Their target amount is 90% of his take- home income this year. Reduce their debt Provide education funding for all three children Trowe to Europe even yen in vetromen to store na wer con mawred Owner Beneficiary the amount Annual Premium Bob Bob Bob murance Type May Mary 20year term -- 5. old S350,000 Variable ite -- Ayrs. old $750,000 A Premium Premium Notes cash Value None 5400 $1,080 53,145 S Benefit Paor LTD Bob 60% of income to age 65,maximum $5,000/mo benefit $6,000 Includes residual disability benefit partial disability benefit and return to work benefit: 90-day wait Plan uses split definition of disability bought this policy while he was working a Resident Physician | t 9wp3 DULE Investment Portfolio Informatie Retirement Plans BOP has a SEPIRA Mary is 100% vested in the Boeing 401k plan Bob's retirement plan is at Vanguard and Mary's is at Fidelity Bob is currently contributing $12,000 to IS SEPIRA He is open to change and seeks your expertise Mary no longer saves for retirement, because she believes she does not have sufficient cash flow and that she is not eligible for retirement savings Bob and Mary has a joint Brokerage account Owner Allocation Fair Market Beneficiary Value Bob - SEP VEVFX 594,800 M ary Bob - SEP VNUTX S47,400 Mary Bob SEP VESVX 594,800 Mary Bob --IRA VSGAX 599,000 J ames and Adam Mary - 401%) Boeing Stock $32,400 Bob Mary - 401/60) FEXPX $20,250 Bob Mary 40100 FST 50 Bob Mary - 401(k) Cost basis in the Boeing stock is Investment Statistics Personal Investments Cost Basis Name Bank of America SLUTS ti Bank 54.912 541.000 59.000 Font Risk Tolerance Bob -- Aggressive Mary - Moderate Estate Tax and Income Tax Information Bob and Mary have a basic will, which was written after their first child was born. They have done no other estate planning. They would like their assets to be split equally between their children after the death of the surviving spouse. Both Bob and Mary currently lives at Charlotte, NC Education Planning Bob and Mary want their children to go to their alma mater, Clemson University, In-state tuition is currently per year. They want to fund 80% of the cost of a 4-year education, ensuring that the cost is fully funded when the child starts schools James has 520,000 in a CD. He is the only child with any money currently saved for college. It is set up as a UTMA account. All children are currently enrolled in public school $45,000 Bob and Mary Jones Statement of Financial Position as of December 31, 2019 Assets Liabilities Cash/Cash Equivalents Credit Card Debt R Checking UTWROS) 5800 Savines UTWROS) 57.000 Total Current Liabilities Money Markets UTWROS) $1,800 Total 59,500 Long-term Liabilities Mortgage (Residence) Invested Assets Vehicle Loan Brokerage Vehicle Loan 12 CD 5 20,000 Bob's Student Loan Total long-term Liabilities Total Liabilities $45.000 $175.446 512,577 SIR,857 $250,000 S457,180 $502,180 Retirement Plan Assets SEPT 401K ? Use Assets Residence UTWROS) Vehide UTWROS) Vehide 2 UTWROS) S $260,000 NET WORTH $18,300 TOTAL LABILITIES AND $21,800 NET WORTH SANO, 100 TO S TOTAL ASSETS H-Husband W-Wire ITWROS Joint Tenants with Right of Survivorship Bob and Mary Jones Monthly and Yearly Budget Mortgage payment or rent Real estate taxes Automobile loan #1 Automobile loan #2 Charge accounts Total Liabilities Monthly Yeach $1,400 $16,800 $195 $2220 $384 $4,608 $446 $5,352 540854,900 $2.823583.880 $942511,304 Transportation Insurance Life insurance Disability income Auto insurance "Homeowners insurance Total insurance $284 $3,408 $500 $6.000 $11751404 $175 $2,100 $2.018 $24.216 Charitable Contributions Household Expenses Medical Children Clothing/Grooming Recreation Gifts BELAS Personal/Business Total $900S 10.800 55,621567.456 $68358, 196 $2,558 $30,700 $575 $6,900 $1,558 518,700 S783 59,400 $500 56,000 $13.78 $158.152 E Additional Information Bob and Mary bought their house six years ago. The original loan was $200,000 and their interest rate is 75%. Occasionally, the will pay a lump sum amount towards their principal Vehicle 1 Loan information: $19,750,5-year note at 6 25%, taken out two years ago Vehicle 2: Loan information: 522,400, 5-year note at 7.25%, taken out last year. The average credit card interest rate is 17.5% Bob and Mary Jones Retirement Case Family Information Bob (DOB 02/15/1973) is a primary care physician with an annual income of $200,000. Mary (DOB 09/16/1979) earns an annual income of $15,000. They have three children, James (age 14), Adam (age 12), and Colin (age 9). Before having children, Mary was employed by Boeing for 14 years Mary was making $42,000 a year when she quit her job at Boeing. After taxes and other deductions (eg. the 401(K), her contribution to the family income was $20,000. Even with that, the Jones' budget was running an average of $1,500 a month in the hole. Mary would like to get totally out of the Boeing retirement plan, as she does not anticipate returning to work there. Mary is thinking of taking a lump- sum distribution of her 401k account and rolling over all of the assets except for the Boeing stock into a self-directed IRA. Bob owns works at a contracted Physician and receives several 1099 each year. Goals and Objectives In order of priority, the specific goals and objectives of Bob and Mary are as follows: 1. Save for retirement - Retire when Bob turns 60, with funding for a projected 30-year life expectancy 2. Provide for the family if something happens to Bob. Their target amount is 90% of his take- home income this year. 3. Reduce their debt 4. Provide education funding for all three children. Travel to Europe each year in retirement for as long as they can Insurance Information Life Insurance Insured Owner Beneficiary Type Amount Cash Annual Value Premium Bob Bob Mary 20-year term -5 yrs. old $350,000 None $400 Bob Bob Mary Variable life - 4 yrs. old $250,000 $11,080 $3,145 Disability Insurance Insured Type Benefit Premium Premium Notes Pa or Bob LTD Bob $6,000 60% of income to age 65; maximum $5,000/mobenefit Includes residual disability benefit, partial disability benefit, and return to work benefit: 90-day wait. Plan uses split definition of disability **Bob's bought this policy while he was working a Resident Physician. investment Portfolio Information Retirement Plans BOP has a SEP IRA. Mary is 100% vested in the Boeing 401(k) plan. Bob's retirement plan is at Vanguard and Mary's is at Fidelity. Bob is currently contributing $12,000 to his SEPIRA. He is open to change and seeks your expertise Mary no longer saves for retirement, because she believes she does not have sufficient cash flow and that she is not eligible for retirement savings. Bob and Mary has a joint Brokerage account. Owner Allocation Fair Market Beneficiary Value VEVFX $94,800 Mary Bob - SEP Bob - SEP VNITX $47,400 Mary Bob -SEP VESVX $94,800 Mary Bob-IRA VSGAX $39,000 James and Adam Mary - 401(k) Boeing Stock $32,400 Bob Mary -401(k) FEXPX $20,250 Bob Mary - 401(k) FSTGX $20,250 Bob Mary - 401(k) FMSFX $8,100 "Cost basis in the Boeing stock is $15,000 Investment Statistics Personal Investments Name w of Shares Price per share Current Value Cost Basis Bank of America 500 $4,875 Citi Bank 300 $4,912 Amazon $41,000 AEPGX $ $9,000 Risk Tolerance Bob - Aggressive Mary - Moderate Estate Tax and Income Tax Information Bob and Mary have a basic will, which was written after their first child was born. They have done no other estate planning. They would like their assets to be split equally between their children after the death of the surviving spouse. Both Bob and Mary currently lives at Charlotte, NC. Education Planning Bob and Mary want their children to go to their alma mater, Clemson University. In-state tuition is Currently per year. They want to fund 80% of the cost of a 4-year education, ensuring that the cost is fully funded when the child starts school. James has $20,000 in a CD. He is the only child with any money currently saved for college. It is set up as a UTMA account. All children are currently enrolled in public school Bob and Mary Jones Statement of Financial Position as of December 31, 2019 Liabilities Credit Card Debt $45,000 Assets Cash/Cash Equivalents Checking (TWROS) $800 Savings (TWROS) $7,000 Money Markets $1,800 JJTWROS) Total $9,600 Total Current Liabilities $45,000 Invested Assets Brokerage CD ? $20,000 Long-term Liabilities Mortgage (Residence) Vehicle Loan #1 Vehicle Loan #2 Bob's Student Loan Total Long-term Liabilities Total Liabilities $175,446 $12,877 $18,857 $250.000 $457,180 $502,180 Retirement Plan Assets SEP 401K $ Use Assets Residence (TWROS) Vehicle (ITWROS) Vehide #2 (TWROS) Total TOTAL ASSETS $260,000 NET WORTH $18,300 TOTAL LIABILITIES AND $21,800 NET WORTH $480,100 S HHusband W Wife ITWROS - Joint Tenants with Right of Survivorship Bob and Mary Jones Monthly and Yearly Budget Monthly Yearly Liabilities Mortgage payment or rent Real estate taxes Automobile loan #1 $1,400 $185 $384 $446 $408 $2.823 $16,800 $2,220 $4,608 $5,352 $4,900 $33.880 Automobile loan #2 Charge accounts Total Liabilities $942 $11,304 Transportation Insurance: Life insurance Disability income Auto insurance Homeowners Insurance Total insurance $284 $500 $117 $175 $2,018 $3,408 $6,000 $1,404 $2.100 $24,216 Charitable Contributions Household Expenses Medical Children Clothing/Grooming Recreation Gifts Personal/Business Total $900 $5,621 $683 $2,558 $575 $1,558 $783 $500 $13,178 $10,800 $67,456 $8.196 $30,700 $6,900 $18,700 $9.400 $6,000 $158 152 Additional information: Bob and Mary bought their house six years ago. The original loan was $200,000 and their interest rate is 7.5%. Occasionally, the will pay a lump sum amount towards their principal. Vehicle 1: Loan information: $19,750, 5-year note at 6.25%, taken out two years ago. Vehicle 2: Loan information: $22,400, 5-year note at 7.25%, taken out last year. The average credit card interest rate is 17.5%. 1) Bob and Mary have asked you to review their current portfolio allocation. a. Create a pie chart showing Bob and Mary's portfolio allocation. b. What is the most amount of money that Bob and Mary can individually contribute to their current retirement account (Bob has a SEP IRA; therefore, you will have to read ahead to answer this question). C. Based on their risk tolerance, do Bob and Mary have a sufficiently diversified portfolio? ign Layout References Maling 11 -KAASE - E Tell me what you want Review View Acrobat S91 ABCD AaBb Alb AaB Aabet ADAC MDX AD AD ABCD Find Replace Bob and Mary Bones Retirement Cone W B008//17 mayores than income of 52000 Mary a rns annual income osas. They have the iden, mes from 14Adam 111, and College Before having children, Mary was moved by Bong for 14 years Retirement Plans MOP has a S . Mary 100 ested in the Big and Mary's at dit Bo m antis and Mary was man 50.000 a year when the other tong Armand other deduction the cotton to the family income was $20. Even with that, the ones but of S inthehole Mary would try of the song Bob is current contributing $12,000 to SEPA is to change and Mary no longer ses for retirement because she below she does not how w e your show and In order of the c hanc es of Mary towel de MA S A BB ABC ABbai Aabe AaB AC AD AED Abc ABCD AGD BOCOR Bob and Mary Jones Money and early but Part Paragraph Bab - Apressive Mary-Moderate Estate Tax and Income Tax information Bob and Mary have a basic will, which was written after the first child was born. They have done other state planning. They would be there to be wi ll between the children alter the death of the w ing Both Bob and Marycurrently lives at Charlotte, NC Education F ing Bob and Mary want their chadren to go to their almamater, Censon University statutionis current per year. They want to fund of the cost of your education muring that the cost is fully funded when the chad starts school has 0.000 aC. He is the only child with any money currently wed for college is set up a UTMA account. All children are currently red in public school M y Tearly Bob and Mary Jones Addomatic Bob and Mary bought the houses the p lan was and the interest rates 7.5. Occasionally, the will alumum amount towards the principal Wide loan information: $18750,5-year o f 62, taken out two years ago Veide 2 La formation: $22,400, 5 year mot at 7.25 liter The were credit card interest rate is 175 E, X A - A Normal No Spac. Heading Heading 4 Font Paragraph Bob and Mary Jones Retirement Case Family Information Bob (DO8 02/15/1973) is a primary care physician with an annual income of $200,000. Mary (DOB 09/16/1979) earns an annual income of $15,000. They have three children, James (age 14). Adam (age 12), and Colin (age 9). Before having children, Mary was employed by Boeing for 14 years Mary was making $42,000 a year when she quither job at Boeing. After taxes and other deductions et the 401(K, her contribution to the family income was $20,000. Even with that, the Jones' budget was running an average of $1,500 a month in the hole. Mary would like to get totally out of the Boeing retirement plan, as she does not anticipate returning to work there Mary is thinking of taking a lump Sum distribution of her 401k account and rolling over all of the assets except for the Boeing stock into a self-directed IRA. Bob owns works at a contracted Physician and receives several 1099 each year. Goals and Obiectives In order of priority, the specific goals and objectives of Bob and Mary are as follows: 1. Save for retirement - Retire when Bob turns 60, with funding for a projected 30-year life expectancy 2. Provide for the family if something happens to Bob. Their target amount is 90% of his take- home income this year. Reduce their debt Provide education funding for all three children Trowe to Europe even yen in vetromen to store na wer con mawred Owner Beneficiary the amount Annual Premium Bob Bob Bob murance Type May Mary 20year term -- 5. old S350,000 Variable ite -- Ayrs. old $750,000 A Premium Premium Notes cash Value None 5400 $1,080 53,145 S Benefit Paor LTD Bob 60% of income to age 65,maximum $5,000/mo benefit $6,000 Includes residual disability benefit partial disability benefit and return to work benefit: 90-day wait Plan uses split definition of disability bought this policy while he was working a Resident Physician | t 9wp3 DULE Investment Portfolio Informatie Retirement Plans BOP has a SEPIRA Mary is 100% vested in the Boeing 401k plan Bob's retirement plan is at Vanguard and Mary's is at Fidelity Bob is currently contributing $12,000 to IS SEPIRA He is open to change and seeks your expertise Mary no longer saves for retirement, because she believes she does not have sufficient cash flow and that she is not eligible for retirement savings Bob and Mary has a joint Brokerage account Owner Allocation Fair Market Beneficiary Value Bob - SEP VEVFX 594,800 M ary Bob - SEP VNUTX S47,400 Mary Bob SEP VESVX 594,800 Mary Bob --IRA VSGAX 599,000 J ames and Adam Mary - 401%) Boeing Stock $32,400 Bob Mary - 401/60) FEXPX $20,250 Bob Mary 40100 FST 50 Bob Mary - 401(k) Cost basis in the Boeing stock is Investment Statistics Personal Investments Cost Basis Name Bank of America SLUTS ti Bank 54.912 541.000 59.000 Font Risk Tolerance Bob -- Aggressive Mary - Moderate Estate Tax and Income Tax Information Bob and Mary have a basic will, which was written after their first child was born. They have done no other estate planning. They would like their assets to be split equally between their children after the death of the surviving spouse. Both Bob and Mary currently lives at Charlotte, NC Education Planning Bob and Mary want their children to go to their alma mater, Clemson University, In-state tuition is currently per year. They want to fund 80% of the cost of a 4-year education, ensuring that the cost is fully funded when the child starts schools James has 520,000 in a CD. He is the only child with any money currently saved for college. It is set up as a UTMA account. All children are currently enrolled in public school $45,000 Bob and Mary Jones Statement of Financial Position as of December 31, 2019 Assets Liabilities Cash/Cash Equivalents Credit Card Debt R Checking UTWROS) 5800 Savines UTWROS) 57.000 Total Current Liabilities Money Markets UTWROS) $1,800 Total 59,500 Long-term Liabilities Mortgage (Residence) Invested Assets Vehicle Loan Brokerage Vehicle Loan 12 CD 5 20,000 Bob's Student Loan Total long-term Liabilities Total Liabilities $45.000 $175.446 512,577 SIR,857 $250,000 S457,180 $502,180 Retirement Plan Assets SEPT 401K ? Use Assets Residence UTWROS) Vehide UTWROS) Vehide 2 UTWROS) S $260,000 NET WORTH $18,300 TOTAL LABILITIES AND $21,800 NET WORTH SANO, 100 TO S TOTAL ASSETS H-Husband W-Wire ITWROS Joint Tenants with Right of Survivorship Bob and Mary Jones Monthly and Yearly Budget Mortgage payment or rent Real estate taxes Automobile loan #1 Automobile loan #2 Charge accounts Total Liabilities Monthly Yeach $1,400 $16,800 $195 $2220 $384 $4,608 $446 $5,352 540854,900 $2.823583.880 $942511,304 Transportation Insurance Life insurance Disability income Auto insurance "Homeowners insurance Total insurance $284 $3,408 $500 $6.000 $11751404 $175 $2,100 $2.018 $24.216 Charitable Contributions Household Expenses Medical Children Clothing/Grooming Recreation Gifts BELAS Personal/Business Total $900S 10.800 55,621567.456 $68358, 196 $2,558 $30,700 $575 $6,900 $1,558 518,700 S783 59,400 $500 56,000 $13.78 $158.152 E Additional Information Bob and Mary bought their house six years ago. The original loan was $200,000 and their interest rate is 75%. Occasionally, the will pay a lump sum amount towards their principal Vehicle 1 Loan information: $19,750,5-year note at 6 25%, taken out two years ago Vehicle 2: Loan information: 522,400, 5-year note at 7.25%, taken out last year. The average credit card interest rate is 17.5% Bob and Mary Jones Retirement Case Family Information Bob (DOB 02/15/1973) is a primary care physician with an annual income of $200,000. Mary (DOB 09/16/1979) earns an annual income of $15,000. They have three children, James (age 14), Adam (age 12), and Colin (age 9). Before having children, Mary was employed by Boeing for 14 years Mary was making $42,000 a year when she quit her job at Boeing. After taxes and other deductions (eg. the 401(K), her contribution to the family income was $20,000. Even with that, the Jones' budget was running an average of $1,500 a month in the hole. Mary would like to get totally out of the Boeing retirement plan, as she does not anticipate returning to work there. Mary is thinking of taking a lump- sum distribution of her 401k account and rolling over all of the assets except for the Boeing stock into a self-directed IRA. Bob owns works at a contracted Physician and receives several 1099 each year. Goals and Objectives In order of priority, the specific goals and objectives of Bob and Mary are as follows: 1. Save for retirement - Retire when Bob turns 60, with funding for a projected 30-year life expectancy 2. Provide for the family if something happens to Bob. Their target amount is 90% of his take- home income this year. 3. Reduce their debt 4. Provide education funding for all three children. Travel to Europe each year in retirement for as long as they can Insurance Information Life Insurance Insured Owner Beneficiary Type Amount Cash Annual Value Premium Bob Bob Mary 20-year term -5 yrs. old $350,000 None $400 Bob Bob Mary Variable life - 4 yrs. old $250,000 $11,080 $3,145 Disability Insurance Insured Type Benefit Premium Premium Notes Pa or Bob LTD Bob $6,000 60% of income to age 65; maximum $5,000/mobenefit Includes residual disability benefit, partial disability benefit, and return to work benefit: 90-day wait. Plan uses split definition of disability **Bob's bought this policy while he was working a Resident Physician. investment Portfolio Information Retirement Plans BOP has a SEP IRA. Mary is 100% vested in the Boeing 401(k) plan. Bob's retirement plan is at Vanguard and Mary's is at Fidelity. Bob is currently contributing $12,000 to his SEPIRA. He is open to change and seeks your expertise Mary no longer saves for retirement, because she believes she does not have sufficient cash flow and that she is not eligible for retirement savings. Bob and Mary has a joint Brokerage account. Owner Allocation Fair Market Beneficiary Value VEVFX $94,800 Mary Bob - SEP Bob - SEP VNITX $47,400 Mary Bob -SEP VESVX $94,800 Mary Bob-IRA VSGAX $39,000 James and Adam Mary - 401(k) Boeing Stock $32,400 Bob Mary -401(k) FEXPX $20,250 Bob Mary - 401(k) FSTGX $20,250 Bob Mary - 401(k) FMSFX $8,100 "Cost basis in the Boeing stock is $15,000 Investment Statistics Personal Investments Name w of Shares Price per share Current Value Cost Basis Bank of America 500 $4,875 Citi Bank 300 $4,912 Amazon $41,000 AEPGX $ $9,000 Risk Tolerance Bob - Aggressive Mary - Moderate Estate Tax and Income Tax Information Bob and Mary have a basic will, which was written after their first child was born. They have done no other estate planning. They would like their assets to be split equally between their children after the death of the surviving spouse. Both Bob and Mary currently lives at Charlotte, NC. Education Planning Bob and Mary want their children to go to their alma mater, Clemson University. In-state tuition is Currently per year. They want to fund 80% of the cost of a 4-year education, ensuring that the cost is fully funded when the child starts school. James has $20,000 in a CD. He is the only child with any money currently saved for college. It is set up as a UTMA account. All children are currently enrolled in public school Bob and Mary Jones Statement of Financial Position as of December 31, 2019 Liabilities Credit Card Debt $45,000 Assets Cash/Cash Equivalents Checking (TWROS) $800 Savings (TWROS) $7,000 Money Markets $1,800 JJTWROS) Total $9,600 Total Current Liabilities $45,000 Invested Assets Brokerage CD ? $20,000 Long-term Liabilities Mortgage (Residence) Vehicle Loan #1 Vehicle Loan #2 Bob's Student Loan Total Long-term Liabilities Total Liabilities $175,446 $12,877 $18,857 $250.000 $457,180 $502,180 Retirement Plan Assets SEP 401K $ Use Assets Residence (TWROS) Vehicle (ITWROS) Vehide #2 (TWROS) Total TOTAL ASSETS $260,000 NET WORTH $18,300 TOTAL LIABILITIES AND $21,800 NET WORTH $480,100 S HHusband W Wife ITWROS - Joint Tenants with Right of Survivorship Bob and Mary Jones Monthly and Yearly Budget Monthly Yearly Liabilities Mortgage payment or rent Real estate taxes Automobile loan #1 $1,400 $185 $384 $446 $408 $2.823 $16,800 $2,220 $4,608 $5,352 $4,900 $33.880 Automobile loan #2 Charge accounts Total Liabilities $942 $11,304 Transportation Insurance: Life insurance Disability income Auto insurance Homeowners Insurance Total insurance $284 $500 $117 $175 $2,018 $3,408 $6,000 $1,404 $2.100 $24,216 Charitable Contributions Household Expenses Medical Children Clothing/Grooming Recreation Gifts Personal/Business Total $900 $5,621 $683 $2,558 $575 $1,558 $783 $500 $13,178 $10,800 $67,456 $8.196 $30,700 $6,900 $18,700 $9.400 $6,000 $158 152 Additional information: Bob and Mary bought their house six years ago. The original loan was $200,000 and their interest rate is 7.5%. Occasionally, the will pay a lump sum amount towards their principal. Vehicle 1: Loan information: $19,750, 5-year note at 6.25%, taken out two years ago. Vehicle 2: Loan information: $22,400, 5-year note at 7.25%, taken out last year. The average credit card interest rate is 17.5%.