Client: Benjamin, Age 52 Client Yearly Gross Income: $85,000.00 Household Yearly Gross Income: $105,000.00 Employment Start Date: August 2008 Benjamin was recently promoted to Associate Professor at Ball State. He has a wife and two children. His wife, Julia, is currently employed part-time and provides travel to/from school for their two kids, Jake and Meredith. Benjamin currently has $160,000.00 in his 403 (b) APP and $90,000.00 in the 457(b), both pre-tax. Benjamin contributes 6% to the 457(b). The family has insurance through Ball State's High Deductible Wellness plan. They have 18 years left on the mortgage at 4.50% interest, and still owe 3 more years on Julia's car at 3.75% interest. Their goal is to retire with no debt while also providing an education for Jake and Meredith. Relevant Client Information: Cash Flow: Monthly Household Income after Taxes, Retirement, and Insurance: $5,500.00 Monthly Debt Payments 6 : $2000.00 Monthly Utilities, Groceries, and Other Expenses: $2000.00 Assets and Liabilities: Cash On Hand: $10,000.00 Retirement Savings (pre-tax): $250,000.00 Total Debt: $250,000.00 Using the above information provide a brief financial plan for the client. In your 200 word minimum overview, address these following questions: 1. How is Benjamin currently doing from a financial perspective? 2. Julia has expressed stress with her part time job and wants to stay at home full time to help with Jake and Meredith. Would you advise for or against this? Why or why not? 3. Assume contributions to both retirement accounts do not change. Benjamin wants to retire in 15 years and replace 70% of current gross household income upon retirement for 20 years. Assuming 6.5% market returns, monthly contributions and withdrawals, and no change in contributions, will Benjamin meet this goal? 6$1,500.00 mortgage and $500.00 auto loan. Client: Benjamin, Age 52 Client Yearly Gross Income: $85,000.00 Household Yearly Gross Income: $105,000.00 Employment Start Date: August 2008 Benjamin was recently promoted to Associate Professor at Ball State. He has a wife and two children. His wife, Julia, is currently employed part-time and provides travel to/from school for their two kids, Jake and Meredith. Benjamin currently has $160,000.00 in his 403 (b) APP and $90,000.00 in the 457(b), both pre-tax. Benjamin contributes 6% to the 457(b). The family has insurance through Ball State's High Deductible Wellness plan. They have 18 years left on the mortgage at 4.50% interest, and still owe 3 more years on Julia's car at 3.75% interest. Their goal is to retire with no debt while also providing an education for Jake and Meredith. Relevant Client Information: Cash Flow: Monthly Household Income after Taxes, Retirement, and Insurance: $5,500.00 Monthly Debt Payments 6 : $2000.00 Monthly Utilities, Groceries, and Other Expenses: $2000.00 Assets and Liabilities: Cash On Hand: $10,000.00 Retirement Savings (pre-tax): $250,000.00 Total Debt: $250,000.00 Using the above information provide a brief financial plan for the client. In your 200 word minimum overview, address these following questions: 1. How is Benjamin currently doing from a financial perspective? 2. Julia has expressed stress with her part time job and wants to stay at home full time to help with Jake and Meredith. Would you advise for or against this? Why or why not? 3. Assume contributions to both retirement accounts do not change. Benjamin wants to retire in 15 years and replace 70% of current gross household income upon retirement for 20 years. Assuming 6.5% market returns, monthly contributions and withdrawals, and no change in contributions, will Benjamin meet this goal? 6$1,500.00 mortgage and $500.00 auto loan
