Ameriprise Case You met these prospects from a referral from a good client. They are meeting with you to help them get their house in financial house in order. Notes from your first meeting: Personal: Kathy, age 49- Kathy was a top performing Talent Recruiter at XYZ company. Her success gathered the attention of the highly sought after ABC company. She just started there in a similar role, but with slightly higher pay and much better career prospects. Her salary is $100,000 with $50,000 annual bonus. John, age 51 - John is a Pharmacist. He worked part-time so he could stay at home with the kids. He just went back to work full time after the kids went to college. Salary was $50,000, but just increased to $100,000 after going back to full time. Penelope and Arthur - Kathy and John's twin children, ages 22 Goals and concerns: Kathy and John were both raised in families that value education. It was very important to them that Penelope and Arthur be able to go to college without incurring any debt. With a combination of their own savings and generous gifts from the grandparents, Penelope and Arthur started their first year of college this fall. Kathy and John are concerned that their choice to prioritize education savings may have compromised their retirement. They are willing to save all of John's additional income and tighten their budget to save the required amount. They are also concerned about the market and want to ensure the retirement nest egg that has already been accumulated is sufficiently protected. . . . . They expect to need $140,000 in pre-tax retirement income. They want to travel in retirement and possibly buy a second home somewhere warm They have no pensions, and both want to their plan to include Social Security. Kathy and John are also interested in assessing their insurance needs now that the kids are off to college. They are worried about dying with their kids still in college Financial Info: . Assets Checking/Savings - $30,000 Penelope Cash College Savings - $5,000 Penelope Prepaid 529 - $80,000 Arthur Cash College Savings - $5,000 Arthur Prepaid 529 - ~$80,000 Kathy Old 401(k) - $400,000 . . Jeff Current 401(k) - $150,000 Jeff Roth IRA - $2,000 Home - $500,000 Liabilities Mortgage - $200,000, 4%, 15 years left Income (annual) . Kathy Salary - $100,000 Kathy Bonus - $50,000 John Salary - $100,000 Expenses (monthly) Essential - $6,000 Lifestyle - $4,000 Savings (annual) Kathy 401(k) Savings - $7,500 (plus a $7,500 match). 70% in equities John 401(k) Savings - $5,000 (plus a $5,000 match): 75% in equities Additional Insurance Information They know they need insurance, but are not really sure what types or how much. Kathy and John both have group disability insurance coverage that covers 65% of salary. Premiums are paid on a pre-tax basis. Kathy has group life insurance equal to 4x salary. John has life insurance equal to 1x salary. They own no other Disability, Life, or Long-Term Care insurance policies. They have adequate health insurance as well as auto/home, but no umbrella coverage. Ameriprise Case Study submission requirements: Part 1: In your teams, answer the following questions: What are the risk exposure the family faces? Do a SWOT analysis of their situation Do a What-if analysis What are the possible solutions include products if appropriate)? What are the future exposures they may face as they move through the Life-Cycle? . . Ameriprise Case You met these prospects from a referral from a good client. They are meeting with you to help them get their house in financial house in order. Notes from your first meeting: Personal: Kathy, age 49- Kathy was a top performing Talent Recruiter at XYZ company. Her success gathered the attention of the highly sought after ABC company. She just started there in a similar role, but with slightly higher pay and much better career prospects. Her salary is $100,000 with $50,000 annual bonus. John, age 51 - John is a Pharmacist. He worked part-time so he could stay at home with the kids. He just went back to work full time after the kids went to college. Salary was $50,000, but just increased to $100,000 after going back to full time. Penelope and Arthur - Kathy and John's twin children, ages 22 Goals and concerns: Kathy and John were both raised in families that value education. It was very important to them that Penelope and Arthur be able to go to college without incurring any debt. With a combination of their own savings and generous gifts from the grandparents, Penelope and Arthur started their first year of college this fall. Kathy and John are concerned that their choice to prioritize education savings may have compromised their retirement. They are willing to save all of John's additional income and tighten their budget to save the required amount. They are also concerned about the market and want to ensure the retirement nest egg that has already been accumulated is sufficiently protected. . . . . They expect to need $140,000 in pre-tax retirement income. They want to travel in retirement and possibly buy a second home somewhere warm They have no pensions, and both want to their plan to include Social Security. Kathy and John are also interested in assessing their insurance needs now that the kids are off to college. They are worried about dying with their kids still in college Financial Info: . Assets Checking/Savings - $30,000 Penelope Cash College Savings - $5,000 Penelope Prepaid 529 - $80,000 Arthur Cash College Savings - $5,000 Arthur Prepaid 529 - ~$80,000 Kathy Old 401(k) - $400,000 . . Jeff Current 401(k) - $150,000 Jeff Roth IRA - $2,000 Home - $500,000 Liabilities Mortgage - $200,000, 4%, 15 years left Income (annual) . Kathy Salary - $100,000 Kathy Bonus - $50,000 John Salary - $100,000 Expenses (monthly) Essential - $6,000 Lifestyle - $4,000 Savings (annual) Kathy 401(k) Savings - $7,500 (plus a $7,500 match). 70% in equities John 401(k) Savings - $5,000 (plus a $5,000 match): 75% in equities Additional Insurance Information They know they need insurance, but are not really sure what types or how much. Kathy and John both have group disability insurance coverage that covers 65% of salary. Premiums are paid on a pre-tax basis. Kathy has group life insurance equal to 4x salary. John has life insurance equal to 1x salary. They own no other Disability, Life, or Long-Term Care insurance policies. They have adequate health insurance as well as auto/home, but no umbrella coverage. Ameriprise Case Study submission requirements: Part 1: In your teams, answer the following questions: What are the risk exposure the family faces? Do a SWOT analysis of their situation Do a What-if analysis What are the possible solutions include products if appropriate)? What are the future exposures they may face as they move through the Life-Cycle