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INFORMATION for Choice C - Young married couple with new baby Take the information as given. Do not change any data. You may, however, add

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INFORMATION for Choice C - Young married couple with new baby Take the information as given. Do not change any data. You may, however, add any additional information to enhance the fact pattern if you believe it is relevant for the financial plan. - Husband works as a mid-level manager at a salary of $54,000 - Wife worked in banking at a salary of $40,000 and is currently on maternity leave to care for the couple's new baby - Couple owns small investment account valued at approximately $60,000 - Husband has 401(k) plan at job and has accumulated 67,000 - Wife has 401(k) plan as well and has accumulated $44,000 - Couple has $3,200 in checking account - Couple has $23,000 in savings account - Wife has $18,000 in savings that she inherited from her father when he died - Husband has four year old Honda Civic in fairly good condition - Wife has six year old Toyota Corolla - Couple is considering selling Toyota to purchase or lease a van - Couple is about to close on a new home. They are paying $20,000 at the sale and are looking at a $180,000 mortgage for 30 years at 5% interest. So, current value of home is $200,000 - Wife is considering resigning from her job to stay at home with the new baby. She has one more month of maternity leave. Couple has a slot held for them at daycare at the rate of $250 per week when wife's maternity leave is over. - Couple has one credit card that is paid o each month, the couple uses it for shopping and other expenses throughout the month. TO DO: 1. Prepare a personal balance sheet (see Worksheets and textbook for examples) Remember that you may add to the information to enhance the fact pattern. You may want to consider adding assets and/or debt that were not mentioned. All items on the balance sheet must be explained. 2. Prepare a cash ow statement (see Worksheets and textbook for examples) Remember that you may add information to enhance the fact pattern. You may want to consider adding income or expense items. All items on the income statement must be explained. 3. Employment: compare current job with resigning Prepare a worksheet to show comparison (see Worksheets for example) Recommend action to take - keep current job or stay-athome

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