Personal Financial Plan for john and sarah John and sarah are married and a middle aged couple In order to achieve their goals, they hope to retire and must, therefore, ensure they have enough savings to cater for their needs in their golden days As a married couple, they have made several investments and are not sure whether their insurance coverage is adequate They are not sure whether they have enough financial resources to last them for the rest of their lives Personal Financial Plan Assumptions Retirement John would like to retire at age 65 and sarah would prefer to retire when he is 67 Asset evaluation Cash Cash equivalents (bank accounts CDs Money Market) USD100,000 Brokerage account (stocks bonds) USD315,000 current value Retirement Annuity (USD250,000 current value) Jills EPF USD400,000 Jacks EPF account (USD520,000) Home is worth USD388,000 with a USD120,000 mortgage at a 4 5 interest rate Jacks car is 3 years old and worth USD27,000 The loan balance is USD9,500 Insurance Coverage Jacks life insurance coverage is through work (USD305,000) at USD100 month Jills life insurance coverage is a whole life policy (USD95,000 death benefit, USD25,000 cash value) at USD85 month Jack has taken a disability policy to compensate him if he becomes disabled through work which replaces 60 of his income and Jane has no disability insurance 3 Other Situation Details Jill is currently self employed Jack grosses approx USD140,000 per year Jill makes approx USD50,000 They spend approximately USD6,000 a month on basic living expenses like utilities, entertainment, basic needs like food, property tax, and other expenses The overall fixed income to equity ratio is about 40 fixed income and 60 equities (40 60) of all investable assets The couple has not drafted a will What is required from you a)Determine the financial situation and strategies net worth statement, cash flow statement, debt reduction, savings and personal financial ratios b)Insurance Analysis c)Investment Analysis d)Estate Plan Review

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Posted on Jul 29, 2024

Personal Financial Plan for john and sarah

John and sarah are married and a middle-aged couple.
In order to achieve their goals, they hope to retire and must, therefore, ensure they have enough savings to cater for their needs in their golden days.
As a married couple, they have made several investments and are not sure whether their insurance coverage is adequate.
They are not sure whether they have enough financial resources to last them for the rest of their lives.

Personal Financial Plan Assumptions

Jacks life insurance coverage is through work (USD305,000) at USD100/month.
Jills life insurance coverage is a whole life policy (USD95,000 death benefit, USD25,000 cash value) at USD85/month.
Jack has taken a disability policy to compensate him if he becomes disabled through work which replaces 60% of his income and Jane has no disability insurance.

3. Other Situation Details

Jill is currently self-employed.
Jack grosses approx. USD140,000 per year; Jill makes approx. USD50,000.
They spend approximately USD6,000 a month on basic living expenses like utilities, entertainment, basic needs like food, property tax, and other expenses.
The overall fixed income to equity ratio is about 40% fixed income and 60% equities (40/60) of all investable assets.
The couple has not drafted a will.

What is required from you

a)Determine the financial situation and strategies - net worth statement, cash flow statement, debt reduction, savings and personal financial ratios.

b)Insurance Analysis

c)Investment Analysis

d)Estate Plan Review