Finance Question, please help with homework. The diagram needs to be filled out, all of the data you should need is below.

Adeyemi retirement TVM diagram Total retirement account balances: at retirement start: } at death: \$ Ages: vame now: Kwame retires at age: Kwame dies at age: ticia now: Laticia retires at age: Laticia dies at age: 2. In retirement, they will need distributions from their investment accounts to come into their bank account monthly. 2 At the age of 36 , Kwame Adeyemi recently finished his cardiology fellowship program and finally, after years of intense and expensive training, became licensed to practice medicine as a heart surgeon. With that came an overnight increase in his income from $62,000 to $475,000 a year. Kwame is admittedly not used to his new financial standing. How successful his life was turning out still feels unreal to him, a son of immigrants from Ghana and Nigeria. As with most young doctors, his professional training dominated his life for years, leaving him little time or energy to take stock of where he was and where he was going, financially. He readily admits that he does not know much about how to manage his money. 9 Kwame's wife Laticia is a blessing in his life. Ever since they met at a medical conference 3 years ago and fell in love, she always grounded him and gave him a clear sense of direction. At 31 years old, Laticia has an exciting and demanding career of her own. She is a molecular biologist with Pfizer, a pharmaceutical company, making $113,500 a year. They are in a loving and committed relationship and look at all their finances as joint money. 13 Family Planning Recently, Laticia felt an increasing desire to start a family. After some discussion and contemplation, the Adeyemis decided to try to have a child, although neither of them is clear on what that change would mean for them financially, and what level of disruption their careers might see. 17 A week ago, Laticia found out she was pregnant. With their busy careers, and now with a child on the way, 18 Kwame and Laticia realized they needed financial advice. They came to your financial planning practice for help 19 sorting out where they stand financially, where they should be going, and what they should be doing to get 20 there. 21 Liquid Assets 22 Kwame has $5,000 in his checking and $67,200 in 23 a bank money market account yielding 0.5% per 24 year. Laticia has $4,300 in her checking account. 25 Home and Mortgage 26 Laticia came into the relationship owning her own apartment, where they both currently live. They love it. There's enough space, even after the baby arrives, so they have no plans to move. The market price of the apartment is estimated at $882,000. Laticia initially borrowed $650,000 to buy it; she currently owes $393,000 on the mortgage. It's a 30-year fixed rate mortgage; the monthly payment (principal and interest) is $2,973. Laticia does not remember what the interest rate is, but they both agree they want to pay off that mortgage as soon as they can, feeling that owning real estate outright is the surest way to financial security. Kwame and Laticia have been diligent trying to pay more than they have to, and they plan to keep doing that. Real estate taxes and homeowner's insurance premiums are $800 a month. 35 Income tax information 36 Being high earners, the Adeyemis' taxes are also high. Their federal income taxes are estimated at $130,000a 37 year, and the New York's income tax bill is expected to be $46,000 a year. 38 Other expenses 39 Laticia and Kwame barely buy any groceries, maybe $200 worth a month. They mostly eat out, and typically 40 spend anywhere from $650 to $1,000 a month. Their utility bills are $300 on average. Clothing expenses are 41$250, transportation is $480, entertainment is $500, and other miscellaneous expenses are $1,000 a month. 42 Despite their busy schedules, they try to go on one annual vacation together, typically spending $4,000 in total. 43 Student Loans 44 Kwame just consolidated his student loans at 6.25% interest rate for 10 years. His monthly payment is $3,009. 45 Laticia's current student loan balance is $63,000. Her monthly payment is $1,008, and the interest rate is 3.9%. 46 Employee Benefits 47 Coney Island Hospital, like most large employers, offers its employees subsidized health insurance coverage. 48 Kwame's share of premiums to cover his whole family is $400 a month. He also signed up for disability income 49 insurance through work, where his premium is $294 per weekly paycheck. 50 Investment and Retirement Information 51 Coney Island Hospital employees can participate in the New York City Deferred Compensation Plan (NYC DCP). 52 The plan has both a 401(k) and a 457 components, both of which Kwame can max out every year, if he wanted 53 to. Kwame heard from colleagues that the 457 plan is better (he does not know why), so he set up his 54 contributions recently to max it out every year. His current balance in the plan is $13,000, and he has been 55 contributing to the Traditional option only. He also has a Roth IRA he established prior to his current 56 employment, where the current balance is $37,000. 57 Laticia has been contributing $4,000 a year to her Pfizer's Roth 401(k) lately, and has accumulated $52,000 in it. 58 Pfizer provides a generous dollar-for-dollar match of employee contributions up to 4.5% of their compensation. 59 This matching contribution goes into the Traditional type of account; her current balance there is $14,400. 60 Kwame and Laticia are somewhat more conservative investors than most others their age. They understand they 61 need significant stock exposure in order to achieve a better long-term return, but they get nervous when their 62 investments go down in value. 63 The Adeyemis plan to retire and start receiving their Social Security benefits at the same time, when Kwame is 6467 and Laticia is 62 years old. Their monthly Social Security retirement benefits at those ages in today's dollars 65 are estimated to be $3,200 for Kwame and $2,000 for Laticia. They think their expenses in retirement in today's 66 dollars will be 70% of their cash outflows now. Other than Social Security, they can only rely on their retirement 67 savings in order to meet their retirement expenses. Kwame wants to plan living to age 95 , and Laticia to age 90. Employer-sponsored retirement accounts are in green Self-established retirement accounts (IRAs) are in blue Adeyemi retirement TVM diagram Total retirement account balances: at retirement start: } at death: \$ Ages: vame now: Kwame retires at age: Kwame dies at age: ticia now: Laticia retires at age: Laticia dies at age: 2. In retirement, they will need distributions from their investment accounts to come into their bank account monthly. 2 At the age of 36 , Kwame Adeyemi recently finished his cardiology fellowship program and finally, after years of intense and expensive training, became licensed to practice medicine as a heart surgeon. With that came an overnight increase in his income from $62,000 to $475,000 a year. Kwame is admittedly not used to his new financial standing. How successful his life was turning out still feels unreal to him, a son of immigrants from Ghana and Nigeria. As with most young doctors, his professional training dominated his life for years, leaving him little time or energy to take stock of where he was and where he was going, financially. He readily admits that he does not know much about how to manage his money. 9 Kwame's wife Laticia is a blessing in his life. Ever since they met at a medical conference 3 years ago and fell in love, she always grounded him and gave him a clear sense of direction. At 31 years old, Laticia has an exciting and demanding career of her own. She is a molecular biologist with Pfizer, a pharmaceutical company, making $113,500 a year. They are in a loving and committed relationship and look at all their finances as joint money. 13 Family Planning Recently, Laticia felt an increasing desire to start a family. After some discussion and contemplation, the Adeyemis decided to try to have a child, although neither of them is clear on what that change would mean for them financially, and what level of disruption their careers might see. 17 A week ago, Laticia found out she was pregnant. With their busy careers, and now with a child on the way, 18 Kwame and Laticia realized they needed financial advice. They came to your financial planning practice for help 19 sorting out where they stand financially, where they should be going, and what they should be doing to get 20 there. 21 Liquid Assets 22 Kwame has $5,000 in his checking and $67,200 in 23 a bank money market account yielding 0.5% per 24 year. Laticia has $4,300 in her checking account. 25 Home and Mortgage 26 Laticia came into the relationship owning her own apartment, where they both currently live. They love it. There's enough space, even after the baby arrives, so they have no plans to move. The market price of the apartment is estimated at $882,000. Laticia initially borrowed $650,000 to buy it; she currently owes $393,000 on the mortgage. It's a 30-year fixed rate mortgage; the monthly payment (principal and interest) is $2,973. Laticia does not remember what the interest rate is, but they both agree they want to pay off that mortgage as soon as they can, feeling that owning real estate outright is the surest way to financial security. Kwame and Laticia have been diligent trying to pay more than they have to, and they plan to keep doing that. Real estate taxes and homeowner's insurance premiums are $800 a month. 35 Income tax information 36 Being high earners, the Adeyemis' taxes are also high. Their federal income taxes are estimated at $130,000a 37 year, and the New York's income tax bill is expected to be $46,000 a year. 38 Other expenses 39 Laticia and Kwame barely buy any groceries, maybe $200 worth a month. They mostly eat out, and typically 40 spend anywhere from $650 to $1,000 a month. Their utility bills are $300 on average. Clothing expenses are 41$250, transportation is $480, entertainment is $500, and other miscellaneous expenses are $1,000 a month. 42 Despite their busy schedules, they try to go on one annual vacation together, typically spending $4,000 in total. 43 Student Loans 44 Kwame just consolidated his student loans at 6.25% interest rate for 10 years. His monthly payment is $3,009. 45 Laticia's current student loan balance is $63,000. Her monthly payment is $1,008, and the interest rate is 3.9%. 46 Employee Benefits 47 Coney Island Hospital, like most large employers, offers its employees subsidized health insurance coverage. 48 Kwame's share of premiums to cover his whole family is $400 a month. He also signed up for disability income 49 insurance through work, where his premium is $294 per weekly paycheck. 50 Investment and Retirement Information 51 Coney Island Hospital employees can participate in the New York City Deferred Compensation Plan (NYC DCP). 52 The plan has both a 401(k) and a 457 components, both of which Kwame can max out every year, if he wanted 53 to. Kwame heard from colleagues that the 457 plan is better (he does not know why), so he set up his 54 contributions recently to max it out every year. His current balance in the plan is $13,000, and he has been 55 contributing to the Traditional option only. He also has a Roth IRA he established prior to his current 56 employment, where the current balance is $37,000. 57 Laticia has been contributing $4,000 a year to her Pfizer's Roth 401(k) lately, and has accumulated $52,000 in it. 58 Pfizer provides a generous dollar-for-dollar match of employee contributions up to 4.5% of their compensation. 59 This matching contribution goes into the Traditional type of account; her current balance there is $14,400. 60 Kwame and Laticia are somewhat more conservative investors than most others their age. They understand they 61 need significant stock exposure in order to achieve a better long-term return, but they get nervous when their 62 investments go down in value. 63 The Adeyemis plan to retire and start receiving their Social Security benefits at the same time, when Kwame is 6467 and Laticia is 62 years old. Their monthly Social Security retirement benefits at those ages in today's dollars 65 are estimated to be $3,200 for Kwame and $2,000 for Laticia. They think their expenses in retirement in today's 66 dollars will be 70% of their cash outflows now. Other than Social Security, they can only rely on their retirement 67 savings in order to meet their retirement expenses. Kwame wants to plan living to age 95 , and Laticia to age 90. Employer-sponsored retirement accounts are in green Self-established retirement accounts (IRAs) are in blue