1.When TDSR exceeds the maximum allowable limit, what are four options that you could consider based on your spending (car)?

Your future income = $45,000/year

You pay $1000/month in rent

You have a cell phone bill of $85/month

You have a student loan payment of $200/month

You have a VISA card with a $1000 limit and $1000 outstanding balance

Car insurance will cost $4000/year

Groceries cost you $100/week

Gas will cost you $50/week

($1000 + $200 + $50 + $321.83) / $3750= 0.41915

= 42%

It is not qualified for this purchase.

This ratio should not exceed 40%.

2.Your professor (who currently drives a practical, family-friendly Mazda) is going through a mid-life crisis and announces to the class that she is going to buy a 2019 Ferrari 488 Spider with a sticker price of over $300,000 and that will be the answer to all of life's problems.

Explain three concerns you have about this purchase from a wealth management perspective