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.

PLEASE GIVE A EXPLANATION FOR ALL

Case 8: Judy Taylor Judy Taylor is a widow at age 49. She has to make many important financial decisions after her lifestyle has changed drastically. Judy and her deceased husband earned $150,000, of which Judy earned $50,000. Since she has lost a significant portion of her income she is concerned with maintaining her household. She is also worried about managing the $300,000 life insurance policy and $80,000 IRA account from her late husband. Judy's assets include $900 in checking and $310,000, most of which is the insurance settlement, in a bank account paying 1.7% interest. She also has the $80,000 IRA balance, $15,000 in stocks that she is not sure how to manage, a $10,000 car, a $250,000 home, and $15,000 in personal property. Judy also has a significant amount of debts, including $5,000 remaining on her late husband's car lease, a $70,000 first mortgage, an $80,000 second mortgage, and $20,000 on credit card debt ($10,000 of which includes funeral expenses). Judy's monthly expenses are roughly $5,000 but she isn't really sure. The biggest expense is $2,500 per month on the home mortgages. This is more than half of Judy's gross income. She is considering paying off both mortgages with the insurance money. Judy hopes to live in her house for another 10 years. Her two children are in their late teens and still live at home. Judy hopes to retire at age 62 and will be eligible for a pension and Social Security, but she has no retirement assets of her own. She describes herself as the spender and her late husband as the saver in the family. She hopes to rollover his IRA into her name and leave this for when she retires. Judy has health insurance through her employer which covers her and her children. It has a $1 million of major medical coverage limit. She has $100,000 of life insurance but no disability insurance. The liability coverage limits on her car and homeowner's policies are $250,000. Case 8: Judy Taylor Judy Taylor is a widow at age 49. She has to make many important financial decisions after her lifestyle has changed drastically. Judy and her deceased husband earned $150,000, of which Judy earned $50,000. Since she has lost a significant portion of her income she is concerned with maintaining her household. She is also worried about managing the $300,000 life insurance policy and $80,000 IRA account from her late husband. Judy's assets include $900 in checking and $310,000, most of which is the insurance settlement, in a bank account paying 1.7% interest. She also has the $80,000 IRA balance, $15,000 in stocks that she is not sure how to manage, a $10,000 car, a $250,000 home, and $15,000 in personal property. Judy also has a significant amount of debts, including $5,000 remaining on her late husband's car lease, a $70,000 first mortgage, an $80,000 second mortgage, and $20,000 on credit card debt ($10,000 of which includes funeral expenses). Judy's monthly expenses are roughly $5,000 but she isn't really sure. The biggest expense is $2,500 per month on the home mortgages. This is more than half of Judy's gross income. She is considering paying off both mortgages with the insurance money. Judy hopes to live in her house for another 10 years. Her two children are in their late teens and still live at home. Judy hopes to retire at age 62 and will be eligible for a pension and Social Security, but she has no retirement assets of her own. She describes herself as the spender and her late husband as the saver in the family. She hopes to rollover his IRA into her name and leave this for when she retires. Judy has health insurance through her employer which covers her and her children. It has a $1 million of major medical coverage limit. She has $100,000 of life insurance but no disability insurance. The liability coverage limits on her car and homeowner's policies are $250,000