5 Continuing Case 55. Investment Objectives The triplets are now three and a half years old, and Jamie Lee and Ross, both 38, are finally beginning to settle down in to a regular routine now that their children are a little more self-sufficient. The first three years were a blur of diapers, feedings, baths, mounds of laundry, and crying babies! Jamie Lee and Ross finally had a welcomed dinner out on their own as Ross's parents were minding the triplets. They were having a conversation about their future and the future of the triplets. College expenses, which they figured to be $110,000, and their eventual retirement seemed to be a major worry of the both of them. They both have dreamed of owning a beach house when they retire. That could be another $415,000 thirty years from now. They wondered how could they possibly afford all of this? They agreed that it was time to talk to an investment counselor, and they need to organize all of their financial information and determine their family's short- and long-term goals for investing before meeting with an advisor. Use the information below to complete their investment objectives and organize their information. Current Financial Situation Assets: Income: Checking account Savings account Emergency fund savings account IRA balance Car (Jamie Lee) Car (Ross) Liabilities: Student loan balance Credit card balance. Car loans $ 5,800 Gross income (Jamie Lee) $ 58,000 $ Net income after taxes (Jamie Lee): $ 40,600 21,300 $ 22,300 Gross income (Ross) $ 93,000 $ 33,300 $ 9,800 Net income after taxes (Ross) $ 74,400 Monthly Expenses: Mortgage $ 1,420 Property taxes $ 530 $ 330 15,300 50 $ 5,300 $ 3,300 Homeowners insurance - IRA contribution Utilities Food Baby essentials (diapers, clothing, etc.) Gas/maintenance Credit card payment $ 430 $315 $ 730 $730 $340 $530 Emergency fund savings account IRA balance Car (Jamie Lee) Car (Ross) Liabilities: Student loan balance. Credit card balance Car loans $ 22,300 Gross income (Ross) $ 33,300 Net income after taxes (Ross) $ 9,800 $ Monthly Expenses: Mortgage 15,300 Property taxes $ 0 $ 5,300 $ 3,300 $ 93,000 $ 74,400 $ 1,420 $ 530 Homeowners insurance IRA contribution Utilities Food Baby essentials (diapers, clothing, etc.) Gas/maintenance Credit card payment Car loan payment Entertainment How Much Time Is Needed? Level of Risk They Will/Can Assume? $ 330 $ 430 $ 315 $ 730 $ 730 $ 340 $ 530 $ 302 $ 190 Is this Goal Reasonable? Description of Goal How Much Money Do You! Need? How Will You Obtain the Money? Pay off credit card i Pay off car loan Save for college tuition for the triplets Save to purchase a beach house at retirement