Case in exper enses Point Situation 43 and a have account. However, YOU BE THE FINANCIAL PLANNER in a savings by very quickly. While at some poi in your life you may finances since he has three months of living ial planner, your the services Resendiz, age 23, recently personal knowledge should be the founda "three months can go from She tion for most financial decisions. For each Patrick noted. received a $12,000 gift her aunt. of these situationsdetermine actions you is considering various uses for these unex. might recommend Situation 1: Fran and Ed Blake, age card bills from her last vacation, or get 47have a daughter who is completing her pected funds including paying off credit S34,000 ting aside money for a down payment on freshman year of college and set a house. Or she might invest the money in years younger is using the money for technol in various savings and investment funds aside for their children's education. With the a tax-deferred retirement account. Another increasing cost of education, they are con- pos ssibility cerned about whether this amount is adequate. ogy certification courses to enhance her In recent months, Fran's s mother has required earning power. Nina also wants to contrib. extensive medical attention and personal care ute some of the funds to a homeless shelter assistance. Unable to live alone, she is now and a world hunger relief organization. She a resident of a long-term care facility. The is overwhelmed by the choices, and com. cost of this service is $4,600 a month, with ments to herself, "I want to avoid the temp annual increases of about 5 percentWhile a tation of wasting the money on impulse major portion of the cost is cover ered by her tems. I want to make sure I use the money Social Security and pension, Fran's mother is on things with lasting value. Questions unable to cover the entire cost. In addition, the Blakes are for their own retirement. While they have consis- 1. In each situation, what are the main financial planning issues that need to be tently made annual deposits to a retirement addressed fund, current financial demands may force 2. What additional information would them to access some of that money. you like to have before recommending actions in each situation? Situation 2: While I knew it might hap This was the reaction of Patrick Hamilton 3. Based on the information provided, along with Exhibit 1-1 and the financial when his company merged with another planning process, what actions would business and moved its offices to another you recommend in each situation state, resulting in his losing his job. Patrick does have some flexibility in his short-term