Alex, who is married and the father of four, is age 45 and expect to work to age 65. He earns $70,000 per year and expects annual salary increases of 5%. Alex expects inflation to be 4% over his working life. His personal consumption is earl to 10% of after tax earnings, and his combined federal and state marginal tax bracket is 20%. Human Life Approach

(a) calculate the familys share of earnings

(b) Calculate work life expectancy

(c) calculate the future value of the familys share of earnings (FSE) over Alexs work life expectancy (WLE)

(d) determine the human life value (HLV)

Financial Needs Approach