1.Provide a brief description of the individual or familys current financial situation.

2.Discuss the financial strengths and weaknesses of the individual or familys situation.

3.Explain any misunderstanding the individual or family has about financial issues.

4.You should comment about their cash flow situation.

5.Use appropriate ratios to discuss the financial situation of the individual or family.

6.You should also calculate the savings required to reach financial goals.

Case 3: Rick Harvey Rick Harvey, aged 48 and a teacher. Rick is a widower and has two children aged 19 and 20, both in college. He has been working as a teacher for 25 years and currently earns a salary of $70,000 annually, plus $15,000 from a part-time business that he hopes to expand after he retires. He hoped to retire at age 57 but doesn't believe that is still going to happen. He participates in a defined benefit pension plan and his future benefits will be determined by his years of service divided by 60 multiplied by the average of his highest three-year's salary. In retirement, he will also be able to get employer-paid health insurance. Rick's net worth is $300,500, $150,000 of which was received from the life insurance benefits following the death of this wife. $100,000 of this life insurance money was used to pay off consumer debts and new investments in a mutual fund. He has been living beyond his means for a long time now and has uninsured medical bills totaling $320,000 from his wife's illness. He plans on closing some of his credit card accounts as the interest payments are extremely high. Because of his overspending and late payments, Rick has a relatively low credit score of 560. With regards to his assets, Rick has $1,500 in checking; $4,500 in savings; $5,000 in CDs currently paying 4.8%; $85,000 in his 403(b) plan; $25,000 in an IRA; $15,000 in two growth mutual funds; a car worth $15,000, a $150,000 house; and personal property worth $55,000. With regards to debt, Rick only has $50,000 remaining on his mortgage. His monthly expenses average roughly $4,000 but he isn't really sure about this. The main expenses are a $1,250 mortgage payment, a $600 car payment, and $400 child support from a previous marriage. He puts $700 a month in his 403(b), which is invested in two stock funds and two bond funds offered by the provider. He is still learning about investing but has been experiencing portfolio losses. He used to have 100% of his 403(b) plan deposits going into stock funds but has since lessened the percentage back to 60%. Rick has no will and a $300,000 term life policy that still includes his deceased wife as sole beneficiary. He does not have disability coverage except for short-term state benefits