Benjamin B$.$ Goode, born $6/15/1983,$ married to Karen A$.$ Badd, born July $2,1983.$ The couple has three children $($Carl$,$ born $1/12/2012$; Susie, born $2/15/2013$; and Edward, born $7/1/2014).$ All children go to private school and are in summer camps each year. Clients have no wills drafted. They have no prenuptial agreement.

Ben earns $$176,000$ per year gross plus $10\%$ in an annual bonus, has a $401($k$)$ plan and contributes $10\%$ of his income. The company matches $50\%$ up to $6\%.$ His expected retirement age is $70$ and life expectancy is $95.$

Karen earns $$78,000$ per year as an office manager. She has a retirement plan and contributes $10\%$ each year. The company matches $50\%$ up to $6\%.$ Her expected retirement age is $70$ and life expectancy is $95.$ Benjamin and Karen think they are in the $18\%$ income tax bracket.

Assets and liabilities:

Clients estimate the current value of the house is $$645,000.$ It was purchased on $9/29/2018$ for $$545,000$ with a $30$ year, $3\mathrm{.}75\%$ mortgage of $$495,000$ and $$50,000$ down payment. The homeowner$$s association$$s monthly fee is $$425\mathrm{.}00.$

Ben and Karen have one credit card carrying $$35,800$ balance at $17\%$ and he pays $$250$ a month. They want to pay down to zero in $12$ months.

They have two car payments $1)$ a $2021$ Honda Odyssey EX minivan, excellent condition, $18,756$ miles, blue, $($standard equipment$)$ purchased for $$36,000,$ and financed $$25,000$ at $4\mathrm{.}75\%$ for six years starting on August $1,2021.2)$ a $2022$ BMW $330$i $($base model$),$ excellent condition $($standard equipment$),18,435$ miles, gray, purchased for $$49,000$ and financed $$45,000$ at $2\mathrm{.}75\%$ for seven years starting on $9/1/22.$ The annual cost for insurance is $$2,960(1,250$ Honda, $$1,710$ BMW$).$ The deductible is $$500$ and the coverage is $100/300/50$ for each car.

There is a $$58,000$ balance in Ben$$s $401$k plan and $$28,000$ in Karen$$s$.$ Their joint savings account has a balance of $$25$k$.$ Ben has $$35$k in an IRA and Karen has $$29$k in her IRA. They own a Municipal bond mutual fund worth $$46,000,$ jewelry worth $$15,000,$ and household appliances worth $$32,000.$

Expenses

Food $$925$ per month, dining out $$625$ per month, lunches $($including children$)$ $$300$ per month, gasoline for cars $$250$ per month, tolls of $325,$ car maintenance $$175$ per month, school $($and summer camp$)1,425$ per month, $$7,200$ a year on vacations $($they put it on their credit card each year$),$ water $$115$ per month, electricity $$410$ per month, cell phones $$165$ per month, cable and internet $$140$ per month, monthly streaming service $$55,$ life insurance $$375$ per month $($a $$425$k policy on Ben which pays $$275,$ and a $$250$k policy on Karen which pays $$100),$ homeowner$$s insurance $$1,500$ per year $($$$125$ included in their monthly mortgage payment$),$ monthly personal care $$310,$ monthly medical expenses $$125,$ monthly savings $$550$ in addition to $401$k contributions, monthly donations $$350,$ monthly clothing $$250,$ school supplies $$960$ per year $($once a year$),$ and gardener$/$housekeeping $$350$ per month.

Calculate the following ratios:

Debt Ratio

Current Ratio

Liquidity ratio

Debt payments ratio

Savings ratio

Client Goals:

Evaluate monthly and year expenses, they do not feel like there is enough income.

Provide for college for each of their children. The estimated costs will be about $$35,000$ per year for four years at a four$-$year degree at a state university $($being from out of state$).$

Retire with similar cost of living at age $70$ with a life expectancy of $96$ years.

Provide for each other at the death of the spouse.

Financial Plan

We will be preparing a financial plan for this client that includes, but is not limited to$,$ the following client reports

Net worth statement $($you will need to create amortization tables$)$

Cash Flow statement.

Capital needs analysis for each spouse

Capital needs analysis for retirement capital needs to retire at age $70($both$)$

Capital needs analysis for college costs.

Estate distribution report

Each report will include comments and suggestions for improvement.