AutoSave OFF w Douglas Case rev 9_7_21(2) - Saved to my Mac Home Insert Draw Design Layout References Mailings Review View Tell me Share Q Comments to Cambria (H... v 16 - AI Aa to 21 AaBbCcDdEe AaBbCcDdEe AaBbccdde AaBb AaBbceDd Ee AaBb CcD Heading 1 AaBbCcDdE Heading 2 Paste B I U v al x Normal APA Title No Spacing X Heading 3 Subtitle Styles Dictate Pane DINK method - DINK is an acronym for DINK stands for double income, no kids. Since Jeff and Mary do have two young children, the DINK method's results may not be appropriate however, please calculate the life insurance need under this method as another point of information. DINK assumes that life insurance coverage is adequate if it covers funeral expenses and one half of the family debts upon an untimely death of one of the "bread winners." 6 Family Need Method - a more detailed method that calculates life insurance needs by considering assets (such as checking and savings accounts and investments) and assuming that life insurance and liquid assets will cover estimated funeral costs and the future financial needs of dependents. For the Family Need method, assume that living expenses are 70% of their income (you need this to estimate an emergency fund). Be conservative and estimate an emergency fund of 6 months of living expenses. Keep in mind that when using the "Family Need" method, you have to run the analysis twice - once based on the what-if assumption that Jeff dies now and once based on the what-if assumption that Mary dies now. Assume that the retirement account on the balance sheet is 90% Jeff's funds and 10% Mary's. Ignore social security death benefits. Also, the assumption should be that the Mutual Fund investment should not be considered as a liquid asset because it is earmarked for the children's education and that also means you do not have to consider an amount for the children's education as the mutual fund will take care of that (assumes that the grandparents will make the gift (see question 6). What do you recommend for death benefit amounts for each person (Jeff and Mary)? What is your rationale for the amount of coverage you recommend? Question 11. Pretend you are a personal financial planning professional attempting to devise a comprehensive personal financial plan for Jeff and Mary. What other areas of Jeff and Mary's personal O Focus Page 6 of 8 3336 words EX English (United States) E - + 143% AutoSave OFF w Douglas Case rev 9_7_21(2) - Saved to my Mac Home Insert Draw Design Layout References Mailings Review View Tell me Share Q Comments to Cambria (H... v 16 21 AaBbCcDdEe AaBbCcDdEe AaBbCcDdE - A Aav A x APA AaBbccdded AaBb AaBb CeDd Ee AaBb CcD Heading 1 Paste B Normal I U v al Title 15 No Spacing X Heading 2 Heading 3 Subtitle Styles Dictate Pane What do you recommend for death benefit amounts for each person (Jeff and Mary)? What is your rationale for the amount of coverage you recommend? Question 11. Pretend you are a personal financial planning professional attempting to devise a comprehensive personal financial plan for Jeff and Mary. What other areas of Jeff and Mary's personal financial situation should be examined and what observations can you make about their current situation? Please mention at least 2 other concepts that they should take a careful look at. Please write a few paragraphs that answer this question. Feel free to pose additional questions that you would like to ask Jeff and Mary as a way of making sure you, as a financial planner, understand their situation. More Notes Regarding Requirement 6 of the Douglas Personal Financial Planning Case These steps and the worksheet below might help you solve requirement 6. I find it easier to set this type of thing up within an Excel worksheet and I like to utilize the FV and PV functions of Excel. However, you can also do this with the time value of money tables within the text or with a financial calculator. It's up to you. In any event, please show your work - how you derived your final answer. 7 Page 7 of 8 3336 words LE English (United States) O Focus E B - + 143% AutoSave OFF DES 5- Douglas Case(2) Q Home Insert Draw Page Layout Formulas Data Review View Acrobat Tell me Share Comments v v Ayu Or 0 EM V 70 Sort & Filter Find & Select Analyze Data Create and Share Adobe PDF P Q R S T V X Calibri (Body) 12 ' ab Insert v General PH LG DX Delete v PX Paste BI av A A E $ %) ES Conditional Format Cell Formatting as Table Styles Format v A8 - X fx What other areas of the family's personal financial situation should be examined? A B D E G G H H J M N 0 1 11. Pretend you are a personal financial planning professional attempting to devise a comprehensive personal financial plan for Jeff and Mary. 2 What other areas of Jeff and Mary's personal financial situation should be examined and what observations can you make about there current 3 4 situation? Please mention at least 2 other concepts that they should take a careful look at. Please write a few paragraphs that answer this question. Feel free to pose additional questions that you would like to ask Jeff and Mary as a way of making sure you, as a financial planner, understand their situation. 7 8 What other areas of the family's personal financial situation should be examined? 9 10 11 12 13 14 15 16 17 18 Observations about the current situation. 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 Q1 Personal Balance Sheet Questions 2, 3, &4 Question 5 Question 6 Question 7 Question 8 and 9 Question 10 Question 11 + Ready P 100% AutoSave OFF w Douglas Case rev 9_7_21(2) - Saved to my Mac Home Insert Draw Design Layout References Mailings Review View Tell me Share Q Comments to Cambria (H... v 16 - AI Aa to 21 AaBbCcDdEe AaBbCcDdEe AaBbccdde AaBb AaBbceDd Ee AaBb CcD Heading 1 AaBbCcDdE Heading 2 Paste B I U v al x Normal APA Title No Spacing X Heading 3 Subtitle Styles Dictate Pane DINK method - DINK is an acronym for DINK stands for double income, no kids. Since Jeff and Mary do have two young children, the DINK method's results may not be appropriate however, please calculate the life insurance need under this method as another point of information. DINK assumes that life insurance coverage is adequate if it covers funeral expenses and one half of the family debts upon an untimely death of one of the "bread winners." 6 Family Need Method - a more detailed method that calculates life insurance needs by considering assets (such as checking and savings accounts and investments) and assuming that life insurance and liquid assets will cover estimated funeral costs and the future financial needs of dependents. For the Family Need method, assume that living expenses are 70% of their income (you need this to estimate an emergency fund). Be conservative and estimate an emergency fund of 6 months of living expenses. Keep in mind that when using the "Family Need" method, you have to run the analysis twice - once based on the what-if assumption that Jeff dies now and once based on the what-if assumption that Mary dies now. Assume that the retirement account on the balance sheet is 90% Jeff's funds and 10% Mary's. Ignore social security death benefits. Also, the assumption should be that the Mutual Fund investment should not be considered as a liquid asset because it is earmarked for the children's education and that also means you do not have to consider an amount for the children's education as the mutual fund will take care of that (assumes that the grandparents will make the gift (see question 6). What do you recommend for death benefit amounts for each person (Jeff and Mary)? What is your rationale for the amount of coverage you recommend? Question 11. Pretend you are a personal financial planning professional attempting to devise a comprehensive personal financial plan for Jeff and Mary. What other areas of Jeff and Mary's personal O Focus Page 6 of 8 3336 words EX English (United States) E - + 143% AutoSave OFF w Douglas Case rev 9_7_21(2) - Saved to my Mac Home Insert Draw Design Layout References Mailings Review View Tell me Share Q Comments to Cambria (H... v 16 21 AaBbCcDdEe AaBbCcDdEe AaBbCcDdE - A Aav A x APA AaBbccdded AaBb AaBb CeDd Ee AaBb CcD Heading 1 Paste B Normal I U v al Title 15 No Spacing X Heading 2 Heading 3 Subtitle Styles Dictate Pane What do you recommend for death benefit amounts for each person (Jeff and Mary)? What is your rationale for the amount of coverage you recommend? Question 11. Pretend you are a personal financial planning professional attempting to devise a comprehensive personal financial plan for Jeff and Mary. What other areas of Jeff and Mary's personal financial situation should be examined and what observations can you make about their current situation? Please mention at least 2 other concepts that they should take a careful look at. Please write a few paragraphs that answer this question. Feel free to pose additional questions that you would like to ask Jeff and Mary as a way of making sure you, as a financial planner, understand their situation. More Notes Regarding Requirement 6 of the Douglas Personal Financial Planning Case These steps and the worksheet below might help you solve requirement 6. I find it easier to set this type of thing up within an Excel worksheet and I like to utilize the FV and PV functions of Excel. However, you can also do this with the time value of money tables within the text or with a financial calculator. It's up to you. In any event, please show your work - how you derived your final answer. 7 Page 7 of 8 3336 words LE English (United States) O Focus E B - + 143% AutoSave OFF DES 5- Douglas Case(2) Q Home Insert Draw Page Layout Formulas Data Review View Acrobat Tell me Share Comments v v Ayu Or 0 EM V 70 Sort & Filter Find & Select Analyze Data Create and Share Adobe PDF P Q R S T V X Calibri (Body) 12 ' ab Insert v General PH LG DX Delete v PX Paste BI av A A E $ %) ES Conditional Format Cell Formatting as Table Styles Format v A8 - X fx What other areas of the family's personal financial situation should be examined? A B D E G G H H J M N 0 1 11. Pretend you are a personal financial planning professional attempting to devise a comprehensive personal financial plan for Jeff and Mary. 2 What other areas of Jeff and Mary's personal financial situation should be examined and what observations can you make about there current 3 4 situation? Please mention at least 2 other concepts that they should take a careful look at. Please write a few paragraphs that answer this question. Feel free to pose additional questions that you would like to ask Jeff and Mary as a way of making sure you, as a financial planner, understand their situation. 7 8 What other areas of the family's personal financial situation should be examined? 9 10 11 12 13 14 15 16 17 18 Observations about the current situation. 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 Q1 Personal Balance Sheet Questions 2, 3, &4 Question 5 Question 6 Question 7 Question 8 and 9 Question 10 Question 11 + Ready P 100%