2024 EPF Case Study -The Fleetwood Family Tasks: You are provided with incomplete information daily You/your group will act as a financial advisor Create Budget and Expense Sheet Come up with recommendations for the Fleetwood family, which must include Debt o o Savings Goal - Insurance - Life Insurance, Car Insurance o Taxes Create Power Point No more than 10 slides Main goal is to give the family sound financial advice Present your recommendations to the class The group with the best financial advice and powerpoint presentation will be awarded a 100 test grade All others (test grade) based on 1/2 teacher and peer grading. DAY 1 CASE STUDY ANALYSIS Family Members Stevie (34) Lindsey (36) The Fleetwood Family Annual Income $100,000 $45,000 - Female Husband Music Venue Owner High School Music Teacher Rhiannon (16) Daughter Nicks (2) - Son Create a budget for the family using expenses that they may have and show what they are now spending plus other items. We have given you some of their expenses but you should create the rest of their expenses from your knowledge of personal finance. The data provided and the following narrative is incomplete; however, you may discover some areas where their personal financial practices could be improved. GOALS The Fleetwoods have recently decided to consult a financial expert on what they might do to improve their financial situation and achieve their goals. Stevie recently received a one time $25,000 royalty check from a song she wrote many years ago. Lindsey would like Rhiannon to attend a private university. He'd like her to pursue a lucrative career since his musician history didn't seem as stable as he'd like for her. Nicks is slated to take over Stevie's music venue. Stevie is certain that she can teach Nicks all he needs to know and there will be no use for college. Stevie and Lindsey would like to retire while they're still up for traveling and touring again but aren't sure they can do so until they're eligible for social security. Stevie and Lindsey expect to live well into their 90s and feel life insurance is a waste of money. The Fleetwood Family also wants to plan a cross country road trip while Lindsey is on summer break. They want to purchase a RV and expect the trip to cost $50,000. OTHER THINGS TO CONSIDER Rhiannon is a bit of a gypsy and tends to not listen to her parents request. Lindsey is also not convinced she'll take his advice and pursue a lucrative career. Her current aspirations include opening an Etsy shop for her hand-dyed kimono business. Lindsey is also particularly concerned now that she's driving, Car insurance Don't go on the trip and save The money ent preschool Nicks, the Fleetwood's 2 year old son is in the best preschool in the area. Lindsey felt he bo to a differ needed to be around other kids that would inspire him. His preschool is VERY expensive and Stevie wishes that Lindsey would just let her keep him at the venue. They have an opportunity to go on tour again with their band from years ago. Lindsey has no desire to reconnect with the band and live the touring life. Stevie has her bags packed. If one or both of them tour, they'll get paid great money but they'll be gone for 6 months. that isn't as expensive - A- least one should go and the other The Fleetwood's have mentioned having zero faith in the stock market and don't find it necessary to fund their kid's college. DAY 2 134,000 75,000 DAY 3-DEBTS SAVINGS Lindsey has a pension plan with the state and has been teaching for 10 years. The Fleetwoods do not have an emergency fund but do have a working checking account with an average balance of $1500. Stevie also has a rollover IRA from an old 401(k), current market value is $134,000 invested all in cash. Stevie is not currently contributing to any retirement plan since she's self employed. Stevie has inherited $75,000 in an S&P 500 index fund, which they currently hold in a joint account in a brokerage firm. In addition, the Fleetwood's inherited debt from Stevie's late parents. They put her parents final expenses on a credit card totaling $25,000 with 19.99% interest. Home Mortgage They financed at a 4.0% interest rate and have 29 years left on a 30 year variable rate mortgage with a balance of $275,000. The market value of the home is $325,000. Principal & Interest Prop. Tax Escrow HOA Total Housing Expenses ** 50,000 equity $1,336 $265 $0 $1,601 Invest in Therapy Hottub is out no more eating out no ubers/transporation needs emergency fund needs lifer car insurance not using Credit Cards for large purchase: take away the hottup Stevie needs to contribute more Share a car Stevie needs discipline maley On Public University 1 furding college tuition for 2 Kids Public Preschool Cancel trip of 150,000 Credit Cards Lindsey has a Guitar Center credit card with a balance of $9200 at 18.99%. Stevie loved the Piano and tambourine he bought her! Stevie also has a Visa Card. She loves boutique shopping and eating at the most popular trendy restaurants. The Fleetwood's recently purchased a hot tub for the cold winter nights while stargazing. They wrote it off as musical inspiration. The purchase price was $12,500. They put down $250 at the time of purchase. The interest rate on the loan is 9.9%. Student Loan Debt Stevie has student loans from where she attended San Jose State University. She dropped out after she met Lindsey and never completed her degree. She has a $35,000 balance and pays just the minimum per month. Lindsey also has student loan debt from where he got his education degree. His monthly loan payments are $425 with a balance of $48,000. His loans are all federal. Transportation Stevie doesn't have a car. She tries to only use public transportation but sometimes becomes impatient and calls an Uber. She spends $550 a month on average on public transportation and Ubers. Lindsey drives a 2020 VW Passat. The remaining balance on the loan is $34,000. The monthly payment is $550 at an interest rate of 0.9%. stays with the Kids